Starbuck man sentenced for bank fraud, money laundering
MINNEAPOLIS - A 55-year-old Starbuck man was sentenced Friday to one year in prison for conspiring with others to steal more than $1 million from the First State Bank of Kensington, according to the U.S. Attorney's Office.
William Felix Schluter pleaded guilty in June. He admitted that from 2002 through 2006, he conspired with an unnamed individual to steal money from the bank through the use of straw borrowers. Schluter and the unnamed individual also created and submitted false loan applications and bank records to the bank, the U.S. Attorney's Office said.
In one case, Schluter submitted a false loan-purpose statement to obtain a $174,431 loan in the name of a company called Baja Development Corporation. Later that day, the proceeds were transferred to an entity Schluter owned. In that instance, prosecutors estimated the bank lost between $1 million and $2.5 million.
Schluter also combined various funds, including deposits and loan repayments, with his various ownership interests to cover up the conspiracy, according to the U.S. Attorney's Office.