LOUISVILLE (CN) – A bank allowed an oil wholesaler’s accounting clerk to embezzle nearly $3 million, the company claims in Federal Court. The oil company claims PBI Bank, successor to Kentucky Trust Bank, knew or should have known that the massive money transfers were fishy.
John W. Stone Oil Distributor claims PBI Bank facilitated the embezzlement of more than $2.8 million.
Stone Oil, of Gretna, La., claims that from 2003 to 2006 its former accounts payable and receivable clerk Donna White and a man named Daniel Kinney opened up fraudulent bank accounts with PBI in the name of its clients, Kentucky Apex Barge, Kentucky Harper and Sierra Kiesel.
White falsely claimed the Stone Oil customers were entitled to refunds and deposited the “falsified ‘refund’ checks” into PBI accounts, the bank says. Then she sent the money to personal accounts or made cash withdraws, according to the complaint.
Stone Oil says the money laundered through PBI was in “such large amounts that it knew or should have known that further investigation and verification of the legality of the transactions were required by the law.”
Stone Oil seeks damages for negligence, aiding and abetting, conversion and violations of the Bank Secrecy Act.
It is represented by Zielke Law of Louisville and Fowler Rodriquez of New Orleans.