Bank Fraud by President of Steve Hall Oil Company Results in 51 Months in Prison and $2.8 Million Restitution Order

OKLAHOMA CITY—Today, BURT L. HALL, 50, of Maysville, Oklahoma, was sentenced to serve 51 months in federal prison for defrauding banks through a check kiting scheme, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Mr. Hall was ordered to pay restitution to American Exchange Bank and Legacy Bank in the total amount of $2,818,113.48. He will serve three years of supervised release after his prison term.

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 has been the president of Steve Hall Oil Company for the last 10 years. Mr. Hall controlled an account of Steve Hall Oil Company at American Exchange Bank in Lindsay, Oklahoma, and an account of D&B 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.

On November 16, 2010, 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.

The case was the result of an investigation conducted by the United States Secret Service and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Scott E. Williams.