Former Newark Bank Loan Officer Admits $1.1 Million Embezzlement

NEWARK – A former loan officer at Independence Community Bank pleaded guilty Tuesday to a one-count Information charging her with embezzling approximately $1.1 million from her former employer, U.S. Attorney Christopher J. Christie announced.

Pamela Cruz, 56, of Roselle Park, pleaded guilty before U.S. District Judge Katharine S. Hayden late on Tuesday to one count of embezzlement by a bank employee. Sentencing was scheduled for Oct. 27.

The embezzlement charge carries a statutory maximum of 30 years in prison. Cruz also faces an order of restitution for the full amount of the embezzlement.

After the plea, Cruz was released on a $250,000 unsecured bond until sentencing. Cruz had not previously been charged. Her guilty plea was her first appearance in court.

At her plea hearing, Cruz admitted that, in connection with her employment as an Assistant Vice President and Assistant Manager for Loan Operations at the Independence Community Bank facility located at 909 Broad Street, Newark (“ICB”), Cruz had access to internal ICB general ledger accounts. At the close of each month, Cruz was responsible for the reconciliation of these accounts.

Cruz admitted that beginning in about June 2000 and continuing until July 1, 2005, she perpetrated a fraud against ICB. Specifically, Cruz identified two dormant customer accounts that ICB had acquired from another bank after a 1999 merger. Cruz transferred ICB funds from the general ledger accounts that she oversaw into the dormant accounts and subsequently transferred the embezzled funds into ICB accounts that she controlled. Cruz adjusted the month-end reconciliations of the general ledger accounts to conceal the unauthorized transfers.

In total, Cruz embezzled approximately $1,122,500.

In determining an actual sentence for Cruz, Judge Hayden will consult the advisory U.S. Sentencing Guidelines, which provide a formula that takes into account the severity and characteristics of the offense and the defendant’s criminal history, if any. The judge, however, has the discretion to sentence within, above or below any sentencing range determined under the guidelines.

Christie credited Special Agents of the FBI, under the direction of Special Agent in Charge Leslie G. Wiser, Jr., Newark Division, with bringing the case.

The government is represented by Assistant U.S. Attorney Seth Kosto of the Criminal Division in Newark.

Defense Attorney: Clifford N. Kuhn, Jr. Esq.