A former executive of the Bank of O’Fallon, Andrew P. Blassie, has been indicted by a federal grand jury in southern Illinois on charges related to a fraud scheme exceeding $2 million. Blassie, 69, from St. Louis, faces charges that include one count of bank fraud and one count of interstate transportation of security or funds obtained by fraud.
U.S. Attorney Steven D. Weinhoeft stated, "Senior bank officials must act as fiduciaries, not felons—they must serve the bank, not swindle it.” He emphasized, "The federal justice system leads the fight against corruption in all its forms, and the allegations in this case—a $2 million check kiting scheme and a $500,000 investor rip-off—are glaring examples of the type of financial betrayal that will not be tolerated." The cooperation of the Bank of O’Fallon in the investigation has been acknowledged as vital.
Blassie, who was the Executive Vice President at the Bank of O’Fallon, is accused of executing a check kite scheme, falsely inflating his personal account by depositing checks backed by non-sufficient funds from accounts at multiple banks and a credit union. Resident Agent Michael Kurzeja of the U.S. Secret Service noted, "Bank fraud is a serious crime that has real victims. It’s worsened when someone in a position of trust violates that authority, as the defendant is alleged to have done in this case to a staggering degree."
Beyond the check kite scheme, the indictment also alleges that Blassie defrauded a couple from Lebanon, Illinois, of $429,000 from their retirement savings. Special Agent Vincent R. Zehme commented, "This indictment charges a former bank executive for allegedly engaging in a check kiting scheme that fraudulently obtained funds from the Bank of O’Fallon."
Jon Ellwanger from the Office of Inspector General for the Federal Reserve System remarked, "This indictment sends a clear message that bank executives who engage in fraud that impacts the safety and soundness of financial institutions will be held accountable."
The indictment further reveals that Blassie sold shares that were pledged as security for promissory notes given to the couple, ultimately failing to repay them. Korey Brinkman from the Federal Housing Finance Agency highlighted their commitment to investigating fraud, stating the importance of partnerships with other agencies.
Officials from the Bank of O’Fallon have cooperated with law enforcement throughout the investigation. Under the legal system, Blassie remains presumed innocent until proven guilty in court. His preliminary court appearance is scheduled for April 23 at the federal courthouse in East St. Louis.
A conviction on bank fraud could result in a maximum sentence of 30 years, with additional penalties for interstate transportation of security or funds obtained by fraud.
This case involves contributions from several agencies, including the O’Fallon Police Department, U.S. Secret Service, and multiple Offices of Inspector General. Assistant U.S. Attorney Scott Verseman is leading the prosecution.