U.S. District Judge James Whittemore on Oct. 5 sentenced formerAmerican Momentum BankSenior Vice President and Special Assets Officer Michael Johnson to 18 months infederal prison for devising a scheme to misapply and embezzle funds provided bythe bank.
A news release from the U.S. Attorney's Office said that as partof Johnson's sentence, the court also entered a money judgment of $152,783, theproceeds of the charged criminal conduct.
The release said that Johnson set up closings with real estatesettlement agents after the bank approved the sale of bank-owned property. He thencontacted them and ordered additions and/or changes to the disbursement side ofthe HUD-1 Settlement Statement.
Funds from the bank were misapplied by directing checks to bewritten or the wiring of funds to bank accounts controlled by Johnson's family members.
Johnson was adjudicated guilty July 8.
The College Station, Texas-based bank is majority-owned by , per SNL data.