Former Labette Banker Sentenced in Wire Fraud Case

WICHITA, KAN. - A former Labette banker was sentenced Monday to eight months of imprisonment to be followed by four months of home confinement for a wire fraud scheme that included misappropriating funds from a bank and an insurance company, and filing false tax returns, U.S. Attorney Tom Beall said.

Keith L. Shaffer, 61, Altamont, Kan., was convicted in a jury trial in November on charges of misapplication of bank funds, wire fraud, misappropriation of insurance funds and making false statements on a federal tax return.

During trial, prosecutors presented evidence that while Shaffer was an employee of Labette Bank he diverted more than $134,000 in commissions on sales of insurance belonging to the bank into his personal account. Shaffer was managing a bank subsidiary called Labette Insurance Company. He was a salaried employee of the bank and all commissions paid on sales by Labette Insurance belonged to the bank. As part of the scheme, he submitted false information to the bank and to the Internal Revenue Service.

Beall commended the Internal Revenue Service, FBI and Assistant U.S. Attorney Alan Metzger for their work on the case.