Michigan bank executive pleads guilty to embezzling more than $870K, tax evasion
GRAND RAPIDS, Mich. (CBS DETROIT) - A bank executive has pleaded guilty after federal officials say he stole more than $870,000 over a seven-year period.
According to the U.S. Attorney's Office, 56-year-old John Figg, of Grand Rapids, faces up to 30 years in prison for embezzlement and tax evasion.
Officials say between 2014 and 2021, Figg, who was a senior bank vice president at United Bank, used his credentials to obtain funds via customer accounts held by depositors, phony loans in customers' names, and funneling fees collected by the bank in connection with loan closing costs.
Between 2016 and 2020, he generated taxable income from the embezzlement and concealed it from his tax preparer.
"Hardworking citizens are entitled to know that when they entrust their money to a bank, it will remain there safe and secure," said U.S. Attorney Mark Totten in a press release. "This prosecution serves as a reminder to bank officials that we will not tolerate any violation of the trust we put in our banks."
Figg could be sentenced to up to 30 years in prison for the embezzlement charge and five years for tax evasion.
A sentencing hearing will be scheduled for a later date.
"Mr. Figg betrayed the trust placed in him by his employer and the public, who have every right to expect bank employees to be honest and law abiding," said James Tarasca, special agent in charge of the FBI in Michigan. "This type of illegal conduct can undermine the financial health of banks and credit unions. As a result, the FBI and IRS will continue our work to hold corrupt insiders fully accountable for their crimes."
