EAST ST. LOUIS, IL – Andrew P. Blassie, 69, of St. Louis, a former high-ranking bank executive, pleaded guilty Monday to a brazen fraud scheme that siphoned over $2 million from the Bank of O’Fallon. The once-trusted insider confessed to bank fraud and interstate transportation of fraudulently obtained funds, bringing a swift reckoning for his calculated betrayal.
Blassie, formerly the Executive Vice President of the Bank of O’Fallon, systematically manipulated the financial system between September 2023 and September 2024. He inflated his personal account balance with checks drawn on accounts harboring insufficient funds – a classic check kiting maneuver – ultimately defrauding the bank of $1,972,887.67. The scheme wasn’t a momentary lapse; it was a sustained effort to line his pockets at the expense of the bank and its customers.
But the greed didn’t stop there. From August 2022 through September 2024, Blassie also preyed on a vulnerable couple from Lebanon, Illinois, convincing them to hand over $489,000 of their retirement savings. He offered promissory notes in return, paying out interest with funds generated from the very check kiting scheme that was bleeding the bank dry. As collateral, he pledged shares of the bank’s holding company – a cynical move to mask his illicit activity with a veneer of legitimacy.
“This conviction…reflects the investigators’ outstanding work and the Bank of O’Fallon’s vital cooperation,” stated U.S. Attorney Steven D. Weinhoeft. “He must face a serious consequence for betraying his clients, employer, family, and community.” The Secret Service’s Resident Agent in Charge, Michael Kurzeja, echoed this sentiment, calling Blassie’s actions “beyond shameful,” emphasizing that the guilty plea sends a clear message: “they will be caught, and they will be held accountable.”
Blassie didn’t just commit fraud; he actively concealed it. Leveraging his position as Executive Vice President, he scrubbed his name and account number from reports flagging potential kiting activity, attempting to cover his tracks and prolong the scheme. The FDIC’s Special Agent in Charge, Vincent R. Zehme, condemned the abuse of trust, stating that the FDIC OIG remains “committed to investigating and holding bank insiders who commit fraud accountable.”
The investigation, a collaborative effort involving the U.S. Secret Service, the FDIC Office of Inspector General, and the Federal Reserve Board’s Office of Inspector General, revealed the extent of Blassie’s corruption. “Andrew Blassie abused his position of trust as a bank executive by committing fraud for his own personal gain and has now been brought to justice for his actions,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. Blassie now awaits sentencing, a reckoning that will hopefully offer some measure of justice to those he defrauded.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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