Department of Justice

United States Attorney James R. Dedrick
Eastern District of Tennessee

FOR IMMEDIATE RELEASE
Tuesday, July 18, 2006

CONTACT: SHARRY DEDMAN-BEARD PHONE: 865-545-4167
FAX: 865-545-4176

FORMER FIRST CENTURY BANK BRANCH MANAGER
SENTENCED IN $600,000 BANK FRAUD CASE

KNOXVILLE, TENNESSEE—Connie Smith Dyer Hunley, 40, formerly Connie Smith Dyer, of Maynardville, Tennessee, was sentenced today by the Honorable Thomas A. Varlan, United States District Judge, to serve forty-one (41) months in prison, and to pay $600,000 in restitution, followed by five (5) years of supervised release. The sentence followed Hunley's guilty plea to bank fraud charges on April 19, 2006.

On April 17, 2006, United States Attorney James R. Dedrick filed an Information in the United States District Court charging Hunley with engaging in a scheme to defraud First Century Bank by embezzling funds from First Century Bank customer accounts and fraudulently obtaining loans in First Century Bank customer names without the customers' knowledge.

According to court documents, Hunley admitted that while working as a manager of First Century Bank, Maynardville, Tennessee, she prepared and submitted false and fraudulent loan applications in the names of First Century Bank customers without the customers' permission and fraudulently obtained the proceeds of the loans. Hunley further admitted that while working as a manager of First Century Bank, Maynardville, Tennessee, she embezzled money from the checking and savings accounts of First Century Bank customers. Hunley admitted that she used the embezzled funds and fraudulent loan proceeds for her personal benefit, to make payments on prior loans that she had fraudulently approved, to conceal her embezzlement of funds previously embezzled from other First Century Bank customer accounts, and to conceal her violations of First Century Bank policy in approving loans to individuals who did not qualify for such loans under First Century Bank's loan approval guidelines.

Hunley admitted that her scheme to defraud First Century Bank through embezzlement and fraudulent loans caused the bank a loss of $600,000. United States Attorney Russ Dedrick said that bank fraud by bank officials will not be tolerated. Dedrick praised the investigative efforts of the Federal Bureau of Investigation and the handling of this case by AUSA Hamilton and the staff of the United States Attorney's Office in Knoxville, Tennessee.

This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney F. M. (Trey) Hamilton III represented the government. For further information, contact Acting U.S. Attorney James R. Dedrick, Assistant U.S. Attorney F. M. Hamilton III, or Public Information Officer Sharry Dedman-Beard, at 865-545-4167.

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