9:03 PM, Jun 8, 2011

http://www.todaysthv.com/news/crime/160498/370/Former-LR-banker-indicted-for-fraud-money-laundering-charges

LITTLE ROCK (KTHV) -- Kelly Harbert, 45, of Little Rock was indicted Wednesday by a federal grand jury for 17 counts of bank fraud, two counts of money laundering and one count of aggravated identity theft.

Harbert served as the vice president and commercial loan officer and later as senior vice president for One Bank.  The charges that Harbert faces claims that she devised a scheme to defraud various financial institutions by acquiring funds under false pretenses.

Harbert then used proceeds from fraudulent loans and lines of credit, totaling over $555,000, for her own personal use.

Using her position at One Bank,  she allegedly approved unsecure loans and lines of credit in the names of another parent, without their knowledge or authorization.

Harbert also used her business relationship with other financial institutions in the Little Rock area to arrange for unsecured loans and lines of credits at the banks in the names of one parent or the other and in the names of some of Harbert's bank clients.  She then used their personal identifiers with client's knowledge or authorization.

The money laundering counts come from Harbert's conversion of the bank proceeds by depositing and transferring amounts, in excess of $10,000, from one account to another.  Harbert was also indicted for aggravated identity theft.

Harbert faces a maximum penalty of 30 years in prison and up to a $1 million fine or both with five years supervised release for bank fraud.  For the money laundering charges, she could face up to 10 years in prison and a $250,000 fine with three years supervised release.

The aggravated identity theft charge adds a mandatory prison sentence of two years to any other sentence received and a fine up to $250,000 or both and one year of supervised release.