A former Commercial Security Bank vice president has been accused of misapplying more than $2 million of the bank's funds.
Jerald N. Engstrom, Huntsville, is charged with making five transfers totaling $2.08 million between May and June 1985, knowing there were no funds to cover the transactions other than the bank's.Engstrom, an Ogden attorney, is to make an initial court appearance June 26 before U.S. Magistrate Ronald Boyce.
In 1987, CSB lawyers reached an undisclosed settlement with a bonding company in an attempt to recover the $2 million. A year earlier CSB was sold to Key Bank.
A grand jury indictment handed up Tuesday charges Engstrom with delivering a check for $256,712 to Main Hurdman, trustee of IML Bankruptcy Estate, and wiring $1 million to Frost Bank of San Antonio, Texas.
The grand jury also charges Engstrom with delivering $675,000 to Ed Harper and transferring $150,000 to First City Bank of Corpus Christi, Texas. The indictment alleges Engstrom knew there were no offsetting funds available for payment of the checks.