Department of Justice

United States Attorney Sheldon J. (Shelly) Sperling

Eastern District of Oklahoma

For Release: July 15, 2008

For Further Information Contact: Douglas A. Horn, First Assistant United States Attorney

“This scheme was coldly calculated and executed. From the defendant’s position of trust, she betrayed vulnerable customers, subservient co-workers, and bank officials.”

“FAUSA Doug Horn presented a persuasive sentencing case. He observed in closing, the singular observation of one notable victim. ‘Lost trust in a dear friend is worse than death.’” -- U.S. Attorney Sheldon J. Sperling.

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that RHONDA HARRIS, age 51, of Wagoner County, Oklahoma, was sentenced in federal court on one count of Embezzlement by a Bank Officer or Employee, in violation of Title 18, U.S.C., Sections 656 and 2, and one count of Money Laundering, in violation of Title 18, U.S.C., Sections 1957 and 2.

“HARRIS was sentenced to 168 months imprisonment for embezzlement and 120 months for money laundering, to run concurrent,” stated First Assistant United States Attorney Douglas A. Horn. “The defendant also received 36 months supervised release. The court ordered restitution in the amount of $3,343,264 to Chubb Insurance and $1,947,091 to Arvest Bank. HARRIS was also ordered to pay a $200 Special Assessment Fee.”

“The defendant was ordered to report to the Bureau of Prisons by Noon on August 8, 2008.”

United States Attorney for the Eastern District of Oklahoma, Sheldon J. Sperling, was recused from any involvement in the case. “I was recused from this case because my wife and I maintained small accounts at the bank. Though our accounts were unaffected, we carefully avoided the appearance of impropriety. If the defendant’s sentence were to have been more lenient than some wished, the resolution was not because I wished her or the bank spared. If the sentence were to have been more severe than some desired, the outcome was not caused by a personal desire for revenge or retribution.”

“Due process takes time and patience. This inquiry took time. I am grateful for the work of the Federal Bureau of Investigation and the Internal Revenue Service Special Agents who worked exhaustively with Arvest bank officials and the defendant to put this jigsaw puzzle together. U.S. Probation Officers diligently summarized relevant material for the court. First Assistant U.S. Attorney Douglas A. Horn did a remarkable job to lead this prosecution. The defendant was admirably and capably defended by Donn F. Baker. On March 6, 2008, HARRIS pled guilty to the charges.”

“This scheme was coldly calculated and executed. From the defendant’s position of trust, she betrayed vulnerable customers, subservient co-workers, and bank officials.”

“Embezzlement and money laundering are the felony crimes to which the defendant pled guilty and is convicted. Her 168 month sentence will be served without the prospect of parole. We hope the victims find some measure of justice from the sentence imposed.”

“On October 23, 2006, a bank customer went to the bank branch in Tulsa to cash a CD she had purchased at the Wagoner branch. Tulsa branch officers were unable to find evidence that the CD existed. The officials researched other accounts and determined that several accounts had been compromised.”

“An executive Vice President immediately confronted the defendant. She confessed that she had been stealing from the bank for 25 years. She was quickly removed from the bank and interviewed that day. She gave a partial list of affected customers, accounts, and amounts.”

“FBI agents conducted interviews. The defendant admitted taking funds from customers who had or wanted to open CD accounts. She had pretended to open CDs and provided certain paperwork, failed to actually enter the CDs in the bank records system, and diverted the money to her personal use.”

“The defendant paid ‘interest’ to some customers on the non-existent CDs—either in cash or with bank-issued money orders. She invaded other customers’ CDs to maintain her scheme.”

“Diversionary transactions were conducted, often involving forged signatures. The defendant’s illegality supported her husband and sons. A horse racing business was underwritten. Family monthly bills were paid—typically with money orders purchased with cash from the defendant’s teller drawer.”

“Customer accounts were thoroughly reviewed by the bank. Some 82 accounts suffered loss. The aggregate loss if $5,566,918.98.”

“The defendant has stipulated, or agreed, that the loss exceeded $2.5 million and was less than $7 million. Reported losses have been verified. Most of the account holders, but reportedly not all, have been reimbursed by the bank.”

“Stables, trailers, and horse training property has been forfeited by the defendant and her family members. She also forfeited residential property – an ATV, tractor, mower, pickup and Hummer were also forfeited and sold for some $96,750.00.”

“FAUSA Doug Horn presented a persuasive sentencing case. He observed in closing, the singular observation of one notable victim. ‘Lost trust in a dear friend is worse than death.’”

“Prosecution does not make victims whole. The emotional toll, time spent to document losses and communicate with counsel, investigative and prosecutorial investments – are lost, due to the defendant’s greed. Her future is confinement. Our hope and prayer is that this sentence will deter anyone who is similarly inclined to rob the vulnerable. We hope that the overwhelming host of honest bank officials will pledge anew to honorably serve their customers.”