President of Steve Hall Oil Company Pleads Guilty to $2.8 Million Bank Fraud
|U.S. Department of Justice November 16, 2010|
OKLAHOMA CITY—Today BURT L. HALL, 50, of Maysville, Oklahoma, pled guilty to defrauding banks through a check kiting scheme, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Mr. Hall has been the president of Steve Hall Oil Company for the last 10 years.
On October 14, 2010, the United States Attorney’s Office filed a one-count Information charging Mr. Hall with defrauding American Exchange Bank and Legacy Bank, both of which are insured by the Federal Deposit Insurance Corporation. Mr. Hall controlled an account of Steve Hall Oil Company at American Exchange Bank in Lindsay, Oklahoma, and an account of B&D Cattle Company at Legacy Bank in Newcastle, Oklahoma. According to the Information, from approximately the beginning of 2006 until February 2, 2009, he wrote checks between these accounts when he knew that the accounts did not have sufficient funds to cover the checks, a practice known as “check kiting.” The check kite artificially inflated the balances in the accounts and allowed Mr. Hall to use the banks’ money without their authorization.
Today, Mr. Hall pled guilty to the Information pursuant to a plea agreement. He admitted that beginning in 2006, he was writing insufficient checks between accounts on a daily basis. He also admitted that the check kite involved an account at Pauls Valley National Bank, which was able to prevent its own losses after the fraud came to light.
At sentencing, Mr. Hall faces a maximum potential penalty of 30 years in prison, a fine of up to $1,000,000, and restitution to the victim banks. As part of his plea agreement, he has agreed to pay restitution to American Exchange Bank and Legacy Bank in the total amount of $2,818,113.48.
The case is the result of an investigation conducted by the United States Secret Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Scott E. Williams.