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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of Ohio

FOR IMMEDIATE RELEASE
Wednesday, January 14, 2015

East Liverpool Woman Accused of $860,000 Bank Fraud

A federal grand jury returned a one-count indictment charging Mary Jo Schmidbauer, age 67, of East Liverpool, Ohio, with bank fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

The indictment alleges that from on or about August 14, 2007, through on or about September 9, 2013, Schmidbauer knowingly devised a scheme to obtain money under the custody and control of Home Savings and Loan, East Liverpool, Ohio, a financial institution insured by the FDIC, by means of materially false and fraudulent pretenses and representations.

It was part of the scheme and artifice that Mary Jo Schmidbauer, while employed by Home Savings and Loan, obtained permission from J.M. to manage money that J.M. deposited into accounts maintained by Home Savings and Loan.  After retiring from her position, Schmidbauer obtained a power of attorney from J.M. to continue managing the accounts maintained by Home Savings and Loan, according to the indictment.

It was further part of the scheme and artifice that Schmidbauer withdrew cash from J.M.’s accounts for Schmidbauer’s own personal use. It was further part of the scheme and artifice that Schmidbauer transferred money from J.M.’s accounts into Schmidbauer’s accounts.  Schmidbauer then withdrew that money for her own personal use, according to the indictment.

On or about August 14, 2007, Schmidbauer executed the scheme and artifice as set forth above, in that she withdrew $3,000 in cash from J.M.’s account for Schmidbauer’s own personal use.  Schmidbauer withdrew this money while employed by Home Savings and Loan and without J.M.’s consent.

On or about September 9, 2013, Schmidbauer executed the scheme and artifice as set forth above, in that she withdrew $100,415.81 from J.M.’s accounts and transferred the money into Schmidbauer’s accounts for her own personal use.  Schmidbauer  transferred this money by misrepresenting the scope of her authority under J.M.’s power of attorney, according to the indictment.

As a result of the scheme and artifice described above, Schmidbauer obtained approximately $860,000 from J.M.’s accounts, according to the indictment.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations.  In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the St. Clair Township Police Department.   The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.

An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

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Updated March 18, 2015