Press Releaese Tim Heaphy U.S. Attorney for Western District of Virginia:
HARRISONBURG, VIRGINIA — The former City/Community Executive and Senior Vice President of FNB Southeast is facing two dozen fraud-related charges following the return of an indictment by a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Harrisonburg.
CLICK HERE for indictment.
On Thursday, August 4, 2011, the grand jury charged Russell Kinnard Henry Jr., 59 of Harrisonburg, Va., with eight counts of bank fraud, eight counts of theft, embezzlement or misapplication by a bank officer and eight counts of making a false statement for the purpose of influencing a financial institution. The indictment was returned under seal and was unsealed this morning following the defendant’s initial court appearance.
According to the indictment, between May 2003 and June 2005, Henry misrepresented himself to be his Alzheimer’s Disease stricken mother, Mary Henry, in loan documentation in order to secure lines of credit in his mother’s name. The applications for credit were made to the defendant’s employer, FNB Southeast. The defendant did not disclose the nature of his relationship on the loan applications to FNB Southeast.
In numerous fraudulent applications allegedly filed by Henry, the defendant falsely stated that his mother was the one making the application and misrepresented her annual income. The defendant acted as the loan officer for each of these application and approved each loan himself.
In all, Henry was fraudulently issued $1,910,101 in loans in his mother’s name. The indictment alleges that Henry then withdrew money from the loan accounts in order to pay his mortgage, his real estate taxes, for the purchase of a Dodge Durango and to buy Coca Cola memorabilia and Petro signs. Some of the alleged withdraws came following the May 25, 2005 death of his mother, and loan recipient, Mary Henry.
If convicted, the maximum penalty faced by the defendant at sentencing is 30 years incarceration and/or a fine of up to $1 million on each of the 24 counts.
The investigation of the case was conducted by the Federal Bureau of Investigation.
Assistant United States Attorney Joseph Mott will prosecute the case for the United States.
A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Posted By Valerie Garner
Categories: Crime, Local Events
Tags: crime, U.S. Attorney