Home Richmond Press Releases 2011 Former Senior Vice President of FNB Southeast Pleads Guilty

Former Senior Vice President of FNB Southeast Pleads Guilty
Russell Henry Admits to Bank Fraud, Embezzlement, False Statements

U.S. Attorney’s Office November 09, 2011
  • Western District of Virginia (540) 857-2250

HARRISONBURG, VA—The former city/community executive and senior vice president of FNB Southeast pled guilty this morning in the United States District Court for the Western District of Virginia in Harrisonburg to charges related to bank fraud.

Russell Kinnard Henry, 60, of Harrisonburg, Va., was indicted in August 2011 on a variety of charges related to bank fraud. This morning, Henry pled guilty to one count of bank fraud, one count of embezzlement by a bank officer and one count of making false statements for the purpose of influencing a financial institution. At sentencing, the defendant faces a maximum possible penalty of 30 years in prison and/or a fine of up to $1,000,000 for each count. Henry also agreed to forfeit a Chevrolet Tahoe, a John Deere tractor, and a John Deere Gator purchased, in whole or in part, with the proceeds of the offenses.

“Russell Henry betrayed the trust placed in him by both his employer and his family,” United States Attorney Timothy J. Heaphy said today. “He lied on loan applications to FNB Southeast Bank, opening lines of credit in the name of his mother who was actually suffering from dementia. Henry was able to obtain almost $2 million as he perpetrated this scheme over a lengthy period of time. He used the money that his lies produced to purchase luxury items like vehicles and decorative memorabilia. He has been justly held accountable for his persistent acts of fraud and betrayal. This case demonstrates our commitment to prosecute those who attempt to cheat our financial institutions for their own selfish interests.”

Henry admitted today that he misrepresented himself in loan documentation to be his Alzheimer’s Disease stricken mother, Mary Henry, in order to secure lines of credit in his mother’s name. The applications for credit were made to the defendant’s employer, FNB Southeast. The defendant did not disclose the nature of his relationship on the loan applications to FNB Southeast.

In numerous fraudulent applications purportedly filed by Mary Henry, the defendant falsely stated that his mother was the one making the application, gave a false address, and misrepresented her annual income. The defendant acted as the loan officer for each of these applications and approved each loan himself.

In all, Henry was fraudulently issued $1,910,101 in loans in his mother’s name. The indictment alleges that Henry then withdrew money from the loan accounts in order to pay his mortgage, his real estate taxes, for the purchase of a Dodge Durango and to buy Coca Cola memorabilia and Petro signs. Some of the alleged withdrawals came following the May 25, 2005 death of his mother, and loan recipient, Mary Henry.

The investigation of the case was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Joseph Mott and Daniel Bubar are prosecuting the case for the United States.