Former vice president charged in scheme that lost $12M for Fifth Third Bank

9/26/2012

A former Fifth Third Bank vice president pleaded not guilty today in federal court on one count each of conspiracy to commit financial institution fraud, financial institution fraud, and bank bribery, as well as 41 counts of money laundering. She was released on a $200,000 unsecured bond.

Paulette Roberts, 54, was charged in U.S. District Court in Toledo in a 44-count indictment that alleged she was involved in a scheme that resulted in the loss of $12 million to the bank.

She is accused of falsifying documents and submitting them to bank officials to obtain credit approval for large commercial loans that would have otherwise been denied. As part of her involvement, Ms. Roberts is charged with soliciting and accepting a gratuity payment from the borrowers.

According to the indictment, Ms. Roberts spent the concealed funds to purchase two vehicles, gold coins, and other assets. As a result of defaults upon these loans, Fifth Third Bank of Toledo incurred a loss of about $12 million.

According to a preliminary calculation of potential penalties, Ms. Roberts faces up to 14 years in prison if convicted of the charges.

Magistrate Judge James Knepp II, set a Jan. 30 deadline for motions to be filed in the case.