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Justice News

Department of Justice
U.S. Attorney’s Office
District of Kansas

FOR IMMEDIATE RELEASE
Wednesday, November 16, 2016

Jury Finds Former Labette Banker Guilty in Embezzlement Case

WICHITA, KAN. – A jury today found a former Labette, Kan., banker guilty on federal charges in an embezzlement case, U.S. Attorney Tom Beall said.

 

Keith L. Shaffer, 61, Altamont, Kan., was convicted on the following charges:

 

        Count one: Misapplication of bank funds.

        Count four: Wire fraud

        Count five: Misappropriation of insurance funds

        Counts six, seven and eight: Making a false statement on a federal tax return

 

Count two was dismissed before trial. He was acquitted on count three.

 

During trial, prosecutors presented evidence that while Shaffer was a bank employee he diverted more than $134,000 in commissions on sales of insurance belonging to the bank into his personal account. Shaffer was managing 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.

 

Sentencing is set for Feb. 6. He faces the following potential penalties:

        Counts one: Up to 30 years in federal prison and a fine up to $1 million on each count.

        Count four: Up to 20 years and a fine up to $250,000.

        Count five: Up to 10 years and a fine up to $250,000.

        Counts six, seven and eight: Up to three years and a fine up to $25,000 on each count.

 

Beall commended the Internal Revenue Service, FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.

Topic: 
Financial Fraud
Updated November 16, 2016