Iowa bank co. discoveres $3.8M in fraud
businessweek.com | 2/15/08 | David Pitt
A former bank employee may have issued bogus certificates of deposit for about $3.8 million that clients are now trying to cash, bank holding company Meta Financial Group Inc. said Friday. Meta Financial said it has discovered that a former employee at a subsidiary perpetrated the scheme over a period of years.
The Storm Lake-based holding company, which has 16 bank offices in Iowa and South Dakota, said its quarterly earnings filing will be delayed.
"The investigation is continuing and no assurance can be provided that additional fraudulent certificates will not come to light," the company said Friday in documents filed with the Securities and Exchange Commission.
The bank said it has contacted law enforcement authorities. Company officials did not immediately return a call seeking comment Friday night.