FraudBaron.com

In September 2007, PNC began an audit in connection with its acquisition of Mercantile and discovered $1,050,000 in unaccounted funds. Further investigation revealed a pattern of suspect debit and credit tickets - signed by Karen Baer - posted to the "Due from Mercantile" account from the 140 Village Shopping Center branch between approximately June 2, 2004, and approximately September 2007. The "Due from Mercantile" account was used within the bank to account for cash shipments from and cash sent to the Federal Reserve. In more than three years, Baer's running total of debits and credits to the Due From Mercantile account increased to $1,050,000. Most of the increases occurred in increments of $10,000, indicating that Baer was usually embezzling $10,000 at a time from the bank. According to the complaint and PNC records, on an almost weekly basis, Baer entered these  debits and credits to make her theft difficult to detect.

According to the complaint, Baer used the money for living expenses, vacations and college tuition for her children.

Baer faces a maximum sentence of 30 years in prison and a fine of $1 million for embezzlement. Baer is scheduled to have her initial appearance in federal district court at 3:00 p.m. today.

A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.

United States Attorney Rod J. Rosenstein thanked the Federal Bureau of Investigation for its investigative work. Mr. Rosenstein commended Assistant United States Attorney Jonathan Biran, who is prosecuting the case.