Ex-Key Bank VP Charged With Embezzling $40.6M

Law360, New York (December 4, 2006, 12:00 AM EST) -- Federal prosecutors filed court papers Friday alleging that a former senior vice president at KeyBank NA took out more than $40 million in fraudulent loans and used the money to fund a lavish lifestyle.

U.S. Attorney William J. Edwards filed papers with the court on Dec. 1 asking for a judgment of $18,610,000 against David Verhotz, KeyBank’s erstwhile senior vice president for Global Treasury Management and director of the bank’s International Division.

The statutory maximum sentence Verhotz could receive for bank fraud is 30 years in...
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