Mary Jo Schmidbauer, $860K Bank Fraud, East Liverpool OH, 2023

EAST LIVERPOOL, OH – Mary Jo Schmidbauer, 67, of East Liverpool, is facing federal charges after allegedly pilfering $860,000 from a vulnerable victim over a six-year period, according to an indictment unsealed today. The U.S. Attorney’s Office for the Northern District of Ohio announced the one-count indictment, alleging Schmidbauer orchestrated a brazen scheme to line her pockets with funds she wasn’t entitled to.

The indictment details how Schmidbauer, while employed at Home Savings and Loan in East Liverpool, gained access to the accounts of a person identified only as “J.M.” She initially secured permission to manage J.M.’s money, then, after her retirement, allegedly exploited a power of attorney to continue controlling the funds. But instead of acting in J.M.’s best interest, the government alleges Schmidbauer began systematically siphoning money for her own personal use.

The scheme reportedly began around August 14, 2007, and continued until September 9, 2013. The indictment lays out specific instances of the alleged fraud, including a $3,000 cash withdrawal from J.M.’s account in 2007 – taken, prosecutors say, without J.M.’s consent. The alleged scheme culminated in a single transaction on September 9, 2013, where Schmidbauer allegedly transferred $100,415.81 from J.M.’s accounts into her own, misrepresenting the scope of her authority under the power of attorney.

Federal investigators claim the total haul from the scheme reached approximately $860,000. The Federal Bureau of Investigation and the St. Clair Township Police Department spearheaded the investigation, uncovering what authorities describe as a calculated and prolonged betrayal of trust. Assistant United States Attorney David M. Toepfer is prosecuting the case.

While the indictment marks a significant step, it’s crucial to remember that Schmidbauer is presumed innocent until proven guilty. The government bears the burden of proving her guilt beyond a reasonable doubt in a court of law. Her sentencing, if convicted, will be determined by the judge, taking into account her criminal history (if any), her role in the offense, and the specifics of the violations. The statutory maximum sentence hasn’t been disclosed.

Grimy Times will continue to follow this case as it progresses through the federal court system. This alleged exploitation of a vulnerable individual highlights the ongoing threat of financial crimes that prey on trust and leave lasting damage. The indictment serves as a warning: those who abuse their positions of power will be held accountable.