(Oklahoma City, Oklahoma) – Former Glencoe bank executive, CRISS L. McGINTY, 51, of Glencoe, Oklahoma, was sentenced to eighteen months in federal prison for embezzlement and misapplication of bank funds, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
Until May 7 of this year, McGinty was a director, shareholder, and Executive Vice President of Glencoe State Bank, which maintains deposits insured by the Federal Deposit Insurance Corporation. On May 6, 2009, a federal grand jury returned a four-count indictment against McGinty for using his position at the bank to transfer over $500,000 from a customer account to a personal account in the name of “McGinty House” to pay for the construction of his personal residence and other personal expenses. Count One of the indictment charged him with embezzlement and misapplication of bank funds from December 8, 2006, to December 24, 2008, during which time the customer’s account was overdrawn and had no funds. The indictment also alleged that McGinty approved overdrafts from the customer’s account and therefore was effectively approving hundreds of thousands of dollars of loans from the bank to himself.
On February 12, 2009, the FDIC began a Safety and Soundness Examination of Glencoe State Bank. Counts Two and Three of the indictment charged McGinty with altering two bank account statements by removing references to transfers from the customer’s account to the “McGinty House” account and then providing these false statements to bank examiners on March 6, 2009. Count Four charged him with obstructing an FDIC examination by providing a third false bank account statement to the examiners on the same day. On July 2, 2009, McGinty pled guilty to embezzlement and misapplication of bank funds and admitted that he used more than $500,000 in funds from an overdrafted account without the permission of the bank.
Today McGinty was sentenced to eighteen months in prison and ordered to serve three years on supervised release. He paid restitution in the amount of $325,459.55 immediately after the sentencing hearing. The court also ordered him to forfeit his residence in Glencoe, as well as the proceeds of his sale earlier this year of a boat and boat motor that he purchased with proceeds of the crime.
These charges are the result of an investigation conducted by the Office of Inspector General of the Federal Deposit Insurance Corporation. The case was prosecuted by Assistant U.S. Attorney Scott E. Williams.