Former Branch Manager of Trustmark National Bank Sentenced for Bank Fraud and Embezzlement

JACKSON, MS—Peggy Sue Harrell was sentenced today in federal court to serve 12 months and one day in prison for bank fraud and embezzlement, U.S. Attorney Donald R. Burkhalter and FBI Special Agent in Charge Daniel McMullen announced. She was also ordered to pay $39,308.60 in victim restitution. Harrell pled guilty to the charges on September 30, 2009.

Harrell, who was previously employed as branch manager of the Castlewoods Branch of Trustmark National Bank (“Trustmark”) in Brandon, Mississippi, committed bank fraud by opening certificates of deposit (“CDs”) in her husband’s name and using those CDs, over which she had no authority, as collateral for loans which she made in the name of her husband and her sister. She would then have the proceeds from those loans deposited into her personal bank account. Harrell would also withdraw money from those CDs, over which she had no control, and deposit those funds into her bank account, thus decreasing the value of the collateral for the loans she had taken out (which were secured by these CDs) and putting the bank at risk.

Harrell also committed bank embezzlement by fraudulently creating debit tickets from various Trustmark general ledger accounts and depositing the money from those Trustmark accounts into her personal account.

U.S. Attorney Burkhalter commended the investigative efforts of the Special Agents of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Mike Hurst.