United States Attorneys Office

MUSKOGEE , OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that RHONDA HARRIS, age 50, of Wagoner County, Oklahoma, pled guilty in federal court.

United States Attorney for the Eastern District of Oklahoma, Sheldon J. Sperling, was recused from any involvement in the case.  “We strictly observed Department of Justice ethical guidelines that provide for a United States Attorney to withdraw from prosecution of a case to avoid the appearance of impropriety or potential conflict of interest, “U.S. Attorney Sperling explained.  “In this case, HARRIS embezzled money from the Arvest Bank in Wagoner, Oklahoma where my wife and I have maintained modest accounts.  Neither we, nor any other employee of the U.S. Attorney’s Office, were victims of the extensive fraud committed by HARRIS.  We simply exercised caution to seek Main Justice counsel and acted in accordance with that advice.  Due to my recusal, First Assistant United States Attorney, Douglas A. Horn, is the Acting United States Attorney in this case.”

“The Information charged HARRIS with two felony counts,” First Assistant U.S. Attorney Horn reported. “Count One, Embezzlement by a Bank Officer or Employee, in violation of Title 18, U.S.C., Sections 656 and 2, specifically alleges that on or about September 6, 2006, HARRIS, then an officer and employee of Arvest Bank, willfully defrauded Arvest Bank by misapplying or embezzling the approximate sum of $34,620.11 of the funds of the institution.  Count Two of the Information charged HARRIS with Money Laundering, in violation of Title 18, U.S.C., Sections 1957 and 2.  Specifically, Count Two alleges that on or about September 9, 2006, HARRIS knowingly engaged in the transfer of funds in the amount of $31,976.00, knowing that the funds were derived from her embezzlement of bank funds.”

“The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea of HARRIS to both counts of the Information, “FAUSA Horn continued.  “The Information alleges a specific transaction that occurred during the lengthy embezzlement scheme.  The charges do not limit the extent of criminality for which HARRIS will be accountable.  We anticipate that the federal sentencing guidelines will consider the entire relevant conduct of her criminal activity in determining the appropriate sentence.”

“The investigation revealed that HARRIS unlawfully took money from more than 90 customers from at least 2001 to 2006,” FAUSA Horn observed.  “The loss has been determined to exceed $5.5 million. The defendant used these funds to personally enrich herself and her family.  These funds were used to purchase real property and other assets in the Wagoner area.  As part of the plea agreement, HARRIS and other family members were required to return or sign over the legal rights of all assets traceable to embezzled funds taken by HARRIS.”

“At the plea hearing today, the court made detailed inquiry in order to find the defendant competent and that she knowingly and willfully waived her constitutional rights and pled guilty to the crimes,” FAUSA Horn explained.  “The court then ordered the completion of a presentence report.  Sentencing will be scheduled following completion of the report and resolution of any related matters.  Pursuant to federal law, HARRIS was ordered to remain free on bond pending sentencing.”

“The statutory range of punishment is not more than 30 years imprisonment and/or up to $1,000,000.00 in fines for the embezzlement charge, and not more than 10 years imprisonment and/or fines of not more than $250,000.00 or twice the amount of the criminally derived property for the money laundering charge,” stated FAUSA Horn.  “Preliminary guideline calculations of the Sentencing Guidelines project advisory sentencing ranges of 121 to 151 months imprisonment for Count One and 135 to 168 months imprisonment for Count Two.  Federal sentencing law typically provides that sentences for related charges run concurrently.  However, federal prison sentences may not be subject to parole.”

“Charges arose from an investigation by the Federal Bureau of Investigation, the Internal Revenue Service, and the U.S. Secret Service,” concluded First Assistant United States Attorney Douglas A. Horn, who represented the government.