Former Ogden banker Jerald N. Engstrom will be sentenced April 25 in federal court on five counts of knowingly misapplying bank money.
A jury found Engstrom guilty on all five counts Thursday afternoon after deliberating for less than two hours. Engstrom's trial lasted 31/2 days in U.S. District Judge David Winder's court.Engstrom could receive a maximum of five years in prison and a $250,000 fine on each of the five counts, said Assistant U.S. Attorney Tena Campbell.
The conviction arises out of five bank transactions Engstrom made in May and June 1985 while working as vice president and general counsel for the former Commercial Security Bank in Ogden. The bank has since been bought by KeyCorp and is now Key Bank of Utah.
According to federal charges, Engstrom wired $1.8 million to a business associate and accounts in three Texas banks over a 15-day period in the early summer of 1985. Additionally, he sent $256,712 of the bank's money to the Salt Lake trustees of a bankrupt company.
All five transfers were to have been covered by personal checks written by Ed Harper, a Texas man with whom Engstrom was working on two business deals. However, all of Harper's checks bounced, leaving CSB to cover the $2 million deficit.