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Wednesday, August 11, 2010

Department of Justice

Acting United States Attorney Gregg L. Sullivan Eastern District of Tennessee


LAFOLLETTE MAN SENTENCED TO 24 MONTHS FOR $1.8 MILLION CHECK FRAUD SCHEME

KNOXVILLE, Tenn—John Dale Henegar, 42, of LaFollette, Tennessee was sentenced today by the Honorable Thomas A. Varlan, United States District Judge, to serve 24 months in prison, followed by three years of supervised release. This sentence followed Henegar's guilty plea to bank fraud charges on January 25, 2010.

On July 21, 2009, a federal grand jury returned an Indictment charging Henegar with defrauding Home Federal Bank, located at 300 Main Street, Jacksboro, Tennessee. According to court documents, Henegar admitted that on February 17, 2005, he presented to Home Federal Bank for deposit and withdrawal, a check in the amount of $1,843,322.39 (one-million eight-hundredforty-three thousand three-hundred-twenty-two United States dollars and thirty-nine cents) that was payable to “JOHNSGIFTS (CHEQUE # 222361) 101 APRIL LANE LAFOLLETTE, TENNESSEE 37766 REF: JOHN HENEGAR” and drawn on a Bank of Montreal account of Agilysys Canada, Inc. (hereinafter “the $1.8 million Agilysys check”). For the purpose of inducing Home Federal Bank to accept and deposit the $1.8 million Agilysys check, Henegar falsely represented to Home Federal Bank that he had received the $1.8 million Agilysys check as payment for a “computer software program” that he had sold to Agilysys Canada, Inc. for $1,843,322.39. On February 24, 2005, relying on Henegar’s fraudulent and material misrepresentation and inter-bank automated clearinghouse verification procedures, Home Federal Bank made the proceeds of the $1.8 million Agilysys check available to Henegar. The $1.8 million Agilysys check had originally been payable to International Business Machines. Prior to being indicted, Henegar had admitted to law enforcement agents that “in terms of the Agilysys check I knew this check was a scam.”

This investigation was conducted by the United States Secret Service and the Federal Bureau of Investigation. Assistant U.S. Attorney F. M. (Trey) Hamilton III represented the government.

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