Ex-bank executive charged with fraud and tax evasion

Last update: October 4, 2008 - 5:43 PM

Gerald Payne, CEO and president of First State Bank Minnesota until June 2007, has been charged with bank fraud and tax evasion for allegedly obtaining more than $200,000 in bank funds by using false and fraudulent pretenses.

A document was filed in federal court in Minneapolis late last week alleging that Payne took money from the bank accounts of customers, charged personal expenditures on a bank credit card, and retained proceeds from checks written to the bank and other parties.

The charge by information, which often means a defendant is cooperating with prosecutors, also alleges Payne understated his income to the IRS and underpaid his taxes.

DAVID PHELPS

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