Bank Vice-President Pleads Guilty to Fraud and Tax Evasion Charges.ADAMS, Mass.--(BUSINESS WIRE)--Aug. 4, 1998--The former Treasurer and Vice-President of South Adams Savings Bank pled guilty to charges that he defrauded his former employer of over $1.6 million and evaded his income tax for the calendar year 1996. Donald K. Stern Donald K. Stern was the U.S. attorney for Massachusetts from 1993 to 2001. He was best known for prosecuting mob figures, including fugitive Winter Hill Gang leader James "Whitey" Bulger and his partner, Stephen "The Rifleman" Flemmi. , United States Attorney United States Attorneys (also known as federal prosecutors) represent the United States federal government in United States district court and United States court of appeals. There are 93 U.S. for the District of Massachusetts, announced that PETER ZABEK, JR., age 58 of Adams and Windsor, Massachusetts pled guilty to bank fraud and the embezzlement embezzlement, wrongful use, for one's own selfish ends, of the property of another when that property has been legally entrusted to one. Such an act was not larceny at common law because larceny was committed only when property was acquired by a "felonious taking," i. of funds from South Adams Savings Bank in federal court today. ZABEK also pled guilty to income tax evasion for the 1996 calendar year. ZABEK was Treasurer and Vice-President of South Adams Savings Bank when he resigned in April, 1997. According to documents on file in federal court, ZABEK embezzled em·bez·zle tr.v. em·bez·zled, em·bez·zling, em·bez·zles To take (money, for example) for one's own use in violation of a trust. over $1.6 million while he was employed by South Adams Savings Bank. Between July, 1988 and September, 1992, ZABEK stole approximately $286,000 from a certificate of deposit held in the name of Pope John Paul II Pope John Paul II (Latin: Ioannes Paulus PP. II, Italian: Giovanni Paolo II, Polish: Jan Paweł II) born Karol Józef Wojtyła , Emergency Fund for the St. Stanislaus Koska Church. ZABEK also wrote a series of unauthorized treasurer's checks on South Adams Saving Bank's own accounts and then deposited these checks into accounts under his control including his personal accounts and accounts maintained at the South Adams Saving Bank by the Polish National Alliance The Polish National Alliance (pol. Związek Narodowy Polski) – the largest and one of the oldest Polish fraternal organizations in the United States, founded on 14 February 1880 in Philadelphia under the influence of Polish patriot Agaton Giller. , a social club located in Adams, Massachusetts. For many years ZABEK was president and business manager of the Polish National Alliance. Senior U.S. District Judge Frank Freedman scheduled a sentencing hearing for November 8, 1998. ZABEK faces a maximum penalty of 30 years' imprisonment and $1 million in fines on the bank fraud and embezzlement charges. He faces a maximum penalty of 5 years in prison and a $100,000 fine for tax evasion. The investigation was conducted by the Federal Bureau of Investigation Federal Bureau of Investigation (FBI), division of the U.S. Dept. of Justice charged with investigating all violations of federal laws except those assigned to some other federal agency. and the Criminal Investigation Division of the Internal Revenue Service in Springfield. The case is being prosecuted by Assistant U.S. Attorney Ariane D. Vuono in Stern's Springfield Office.
CONTACT: U.S. Attorney's Office
Samantha Martin, (617) 223-9445
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion