Corporation Executive Convicted in Bank Fraud Scheme

Richard Blow, former Chief Operating Officer and part owner of Merritt Oil Company, was convicted yesterday in federal court on charges related to a financial fraud scheme involving a loss of approximately $1.8 million. Chief United States District Judge William Steele found that from September of 2008 through August of 2009, Blow engaged in a conspiracy and committed bank fraud by directing two co-defendants to make unauthorized and fraudulent electronic funds transfers totaling more than $160 million. The victim financial institution suffered a loss of approximately $1.8 million.

Chief Judge Steele set Blow’s sentencing for June 3, 2011. The two co-defendants are scheduled to be sentenced before United States District Judge Callie V.S. Granade on April 18 and 19. Bank fraud carries a penalty of up to 30 years’ imprisonment, and a fine of up to $1,000,000. Conspiracy is punishable by up to five years’ imprisonment and a fine of up to $250,000.

The Federal Bureau of Investigation conducted the investigation and presented the case for prosecution to the United States Attorney’s Office. Assistant United States Attorney Sean P. Costello is handling the prosecution of the case on behalf of the United States.