Loan Officer in South Carolina in Embezzlement Case

Schemes like this are one of the reason the housing market collapsed. This woman was embezzling money by playing around with the mortgages and home equity credt lines of friends and family who used her bank. She thus had motive to pass out loans to people regardless of their ability to pay and the borrowers, who were friends of hers, had leverage to black mail her into giving them even more credit since it’s unlikely they wouldn’t have known what she was up to.

United States Attorney Bill Nettles announced that Kimberly O. McAbee of Woodruff, S.C., has been sentenced in federal court in Greenville, S.C., for embezzling bank funds, a violation of Title 18, United States Code, Section 656. Senior United States District Judge G. Ross Anderson Jr. sentenced McAbee to 24 months’ imprisonment. Evidence presented at the change of plea hearing established that from 1988 until December 2009, McAbee worked at Arthur State Bank in Woodruff, S.C.

Starting in about November 2006 and continuing into December 2009, McAbee embezzled approximately $520,000 through the manipulation of home equity lines of credit (HELOCs) and mortgage loans held by family members and friends at Arthur State Bank. In an effort to hide her activities, McAbee accessed the bank’s expense and Freddie Mac accounts to move funds around to conceal the theft.

Anyone want to guess how many of those mortgages are sub-prime?


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