Business and the New Economy News

$800,000 Allegedly Stolen

Missoula Bank Faces Embezzlement Scandal

By Robert Struckman, 9-15-08

Officials at First National Bank of Montana allege that a longtime bank retail manager embezzled some $800,000 over a number of years in Missoula. Sources say federal investigators and bank examiners have been probing the case, and that criminal charges will soon be filed.

“I’m not at liberty to go a lot into the specifics,” said First National’s Missoula market president Adam McQuiston. “Here’s the limited detail I can go into: Internal theft was uncovered early this year by bank officials, who took immediate action, and authorities were contacted. The bank has been reimbursed via insurance for the losses, net a deductible of $50,000. The theft didn’t affect client accounts or customers.”

Internal controls put in place by current managers uncovered the theft in February. The bank has been, and continues to be, in good standing, according to McQuiston. All he would say about how the alleged embezzlement was this: “Through a series of channels, the normal security procedures were circumvented.”

Sources close to the bank and the investigation declined to lay out more of the specifics, saying it would jeopardize the case.

First National Bank, headquartered in Libby, has about 125 employees in 11 offices across Montana from Troy to Billings. The bank has some $284 million in assets. In 2004 the bank bought and renovated a historic building on the 200 block of North Higgins Avenue downtown in a bid to win more business customers.

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