Bank Fraud Uncovered: Local Businesswoman Brought Down by Own Greed
In a shocking display of corruption, Karen E. Ramm, a 54-year-old Wormleysburg resident, was sentenced to one year plus one day in prison for her role in a brazen bank fraud scheme.
Ramm, a former Branch Manager and Loan Officer of Commerce Bank (now known as First National Bank of Pennsylvania, successor to Metro Bank), used her position to defraud the bank out of a staggering $102,500. The scheme involved extending a business loan to a borrower with whom Ramm had a personal relationship, despite knowing that the loan was unwarranted.
According to U.S. Attorney David J. Freed, Ramm’s actions were a clear violation of the public’s trust. ‘Karen Ramm’s actions were a betrayal of the public’s trust, and she must now face the consequences of her actions,’ Freed said.
The case was investigated by the Federal Bureau of Investigation, with assistance from Commerce Bank’s security and investigations staff. Assistant U.S. Attorney James T. Clancy prosecuted the case.
Ramm’s sentence was handed down by Chief United States District Court Judge John E. Jones III on October 28, 2020. In addition to her prison time, Ramm was ordered to pay $102,500 in restitution, with $21,668.31 going to Commerce Bank and $80,831.69 paid to an insurance company.
The case serves as a stark reminder of the dangers of unchecked power and the importance of holding public officials accountable for their actions.
As the people of Pennsylvania demand justice, one thing is clear: Karen E. Ramm will have to answer for her crimes.
Related Federal Cases
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Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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