Star Bank VP admits stealing $80,000 from bank
The former branch manager and vice president of the Bertha branch of Star Bank admitted in federal court he embezzled around $80,000 from Sept. 1, 2010, to June 1, 2011.
Kenneth Marlyn Ashbaugh, 67, pleaded guilty to one count of bank theft, the U.S. Attorney's office said.
Ashbaugh was charged Jan. 27 and entered his plea before United States District Court Judge Donovan W. Frank on March 5.
Ashbaugh admitted that during the same period during 2010-2011, he fraudulently obtained loans from the bank by misrepresenting either the identity of the individual applying for the loan or the applicant's ability to repay the loan.
For his crime, Ashbaugh faces a potential maximum penalty of 10 years in prison.
The case is the result of an investigation by the Federal Bureau of Investigation and the Todd County Sheriff's Office. It is being prosecuted by Assistant U.S. Attorney Kimberly A. Svendsen.