Loan Officer Sentenced for Improper Conduct

Allison Tussey —  May 26, 2011 — Leave a comment

Melvin Rohs, 65, Nevada City, California, was sentenced by United States District Judge Lawrence K. Karlton to 33 months in prison to be followed by five years of supervised release and ordered him to pay $533,976 in restitution.

On December 14, 2010, Rohs pleaded guilty to three counts of theft, embezzlement or misapplication of bank officer or employee and two counts of making a false statement in connection with a loan application or renewal.

According to court documents, Rohs was a senior loan officer at a regional bank headquartered in Nevada City until he was terminated in May 2009. In December 2008, February 2009, and March 2009, Rohs initiated three unauthorized fund transfers between bank customers totaling over $472,000. Also, according to court documents, in September 2008 and April 2009, Rohs falsified loan documents by making materially false statements concerning the credit worthiness of a bank customer and by making an unauthorized increase to a loan approved by the bank. The loss associated with Rohs’ criminal conduct exceeds $2.1 million.

United States Attorney Benjamin B. Wagner announced the sentencing.

This case is the product of an investigation by IRS-Criminal Investigation. Assistant United States Attorney Camil A. Skipper prosecuted the case.

This law enforcement action is part of the work being done by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. One component of the FFETF is the national Securities Fraud Working Group, which is tasked with combating investment fraud schemes. For more information on the task force, visit StopFraud.gov.

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Allison Tussey

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