Federal Deposit Insurance Corporation
Office of Inspector General

Former Labette Banker Sentenced in Wire Fraud Case

United States Department of Justice
The United States Attorney's Office, District of Kansas
PRESS RELEASE
Press Release

FOR IMMEDIATE RELEASE

Monday, September 18, 2017

Former Labette Banker Sentenced in Wire Fraud Case

On September 18, 2017, Keith Shaffer (Shaffer), former bank employee of Labette Bank, Altamont, Kansas (FDIC Cert. # 17068), was sentenced to serve eight (8) months in prison to be followed by two (2) years of supervised release.  In addition, he was ordered to pay restitution in the amount of $49,162.45.

Nature of schemes:  Shaffer diverted more than $134,000 in commissions on sales of insurance belonging to the bank into his personal account. Shaffer managed a bank subsidiary called Labette Insurance Company. He was a salaried employee of the bank and all commissions paid on sales by Labette Insurance belonged to the bank. As part of the scheme he submitted false information to the bank and to the Internal Revenue Service.  Labette Bank is regulated by the FDIC.

Responsible Agencies:  This is a joint investigation by the FDIC OIG, the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation.  This case is being prosecuted by the United States Attorney’s Office for the District of Kansas.

This content has been reproduced from its original source.

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