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Former Labette Banker Found Guilty in Embezzlement Case

On Wednesday, November 16, a jury found a former Labette, KS, banker guilty on federal charges in an embezzlement case.

Keith L. Shaffer, 61, from Altamont, KS, was convicted on the following charges:

  • Count One: Misapplication of bank funds.
  • Count Four: Wire Fraud.
  • Count Five: Misappropriation of insurance funds.
  • Counts Six, Seven and Eight: Making a false statement on a federal tax return.
  • Count two was dismissed before trial and he was acquitted on count three.

    During Shaffer’s trial, prosecutors presented evidence that showed while Shaffer was a bank employee, he diverted more than $134,000 in commissions on sales of insurance belonging to the bank into his personal account. Shaffer was managing a bank subsidiary called Labette Insurance Company. He was a salaried employee of the bank and all commissions paid on sales by Labette Insurance belonged to the bank. As part of the scheme, he submitted false information to the bank and to the Internal Revenue Service (IRS).