Former Senior Vice President of FNB Southeast Sentenced
Russell Henry To Serve 57 Months in Federal Prison
HARRISONBURG, VIRGINIA -- The former City/Community Executive and Senior Vice President of FNB Southeast was sentenced this morning in the United States District Court for the Western District of Virginia in Harrisonburg on charges related to bank fraud.
Russell Kinnard Henry, 60, of Harrisonburg, Va., pled guilty in November 2011 to one count of bank fraud, one count of embezzlement by a bank officer and one count of making false statements for the purpose of influencing a financial institution.
This morning, Henry was sentenced to 57 months in Federal prison to be followed by five years of supervised release. As part of his plea agreement, the defendant has also agreed to pay $532,044.39 in restitution. Henry also agreed to forfeit a Chevrolet Tahoe, a John Deere tractor, and a John Deere Gator purchased, in whole or in part, with the proceeds of the offenses.
Henry admitted he misrepresented himself in loan documentation to be his Alzheimer’s Disease stricken mother, Mary Henry, in order to secure lines of credit in his mother’s name. The applications for credit were made to the defendant’s employer, FNB Southeast. The defendant did not disclose the nature of his relationship on the loan applications to FNB Southeast.
In numerous fraudulent applications purportedly filed by Mary Henry, the defendant falsely stated that his mother was the one making the application, gave a false address, and misrepresented her annual income. The defendant acted as the loan officer for each of these applications and approved each loan himself.
In all, Henry was fraudulently issued $1,910,101 in loans in his mother’s name. Henry has admitted that he withdrew money from the loan accounts in order to pay his mortgage, his real estate taxes, for the purchase of a Dodge Durango and to buy Coca Cola memorabilia and Petro signs. Some of the alleged withdrawals came following the May 25, 2005 death of his mother, and loan recipient, Mary Henry.
The investigation of the case was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Joseph Mott and Daniel Bubar are prosecuting the case for the United States.