Woman Sentenced to More Than Seven Years for $4 Million Fraud

Former Bank Employee Used Her Position to Bilk More than 40 Victims

June 3, 2010 - A former Sac City bank employee who sold millions of dollars in phony certificates of deposit (“CDs”) was sentenced today to more than seven years in federal prison.

Charlene Marie Pickhinke, 49, from Sac City, Iowa, received the prison term after a July 9, 2009, guilty plea to one count each of wire fraud, making a false statement in a bank’s books and records, money laundering, and aggravated identity theft.

At the guilty plea, Pickhinke admitted that, from 1995 to 2008, while employed at a Sac City Bank, she sold more than 40 fraudulent CDs to unknowing victims. Pickhinke admitted she fraudulently claimed she was selling CDs on behalf of the bank where she worked. Pickhinke also admitted she fraudulently opened two bank accounts using the names and Social Security numbers of deceased bank customers. Pickhinke admitted she used these bank accounts to launder proceeds from the fraudulent scheme. Pickhinke admitted she defrauded over 40 victims out of more than $4 million.

Pickhinke was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Pickhinke was sentenced to 92 months’ imprisonment. A special assessment of $400 was imposed, and she was ordered to make more than $4 million in restitution to her victims. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.

Pickhinke was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.

The case was prosecuted by Assistant United States Attorney Sean R. Berry and investigated by the Federal Bureau of Investigation.