William Guy Paul Arraigned and Pleads Guilty in U.S. Federal Court
| U.S. Attorney’s Office February 25, 2010 |
The United States Attorney's Office announced that during a federal court session in Billings on February 25, 2010, before Chief U.S. District Judge Richard F. Cebull, WILLIAM GUY PAUL, a 44-year-old resident of Billings, was arraigned and pled guilty to bank embezzlement. Sentencing is set for May 26, 2010. He is currently released on special conditions.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan M. Archer, the government stated it would have proved at trial the following:
PAUL was the President of the Downtown Branch of Yellowstone Bank in Billings. He also oversaw the Yellowstone Bank in Bozeman. PAUL's duties included supervising approximately seven employees, bringing in new bank customers, issuing loans, and essentially running all aspects of the Downtown Branch.
In 2008 and 2009, PAUL used his position to embezzle funds from the bank for his own personal use and benefit. In early June 2009, Yellowstone Bank discovered over $7,000 had not been paid to a bank customer. The customer sold real estate in February 2009, and due to a timing difference with their loan payment, they overpaid the bank $7,244.12. On February 11, 2009, PAUL created a Yellowstone Bank cashier's check payable to the customer for $7,244.12. But PAUL never gave the check to the customer. Instead, the check sat until May 15, 2009, when PAUL used the funds to make a payment on his personal credit card, deposited $2,000 of it in his personal savings account, and took some more in cash.
Further investigation revealed that in addition to stealing these funds, PAUL took just over $10,000 from the bank in 2008. PAUL deposited these funds into his personal bank account.
In all, Yellowstone Bank suffered a $17,284.12 loss due to PAUL's conduct. In conversations with the bank, PAUL admitted to improperly taking the money. He was terminated from the bank on June 9, 2009, as a result of this conduct.
PAUL faces possible penalties of 30 years in prison, a $1,000,000 fine, and five years of supervised release.
The investigation was conducted by the Federal Bureau of Investigation.