MEMPHIS, TN – A former Tri-State Bank branch manager is facing serious time after pleading guilty to conspiracy and embezzlement, admitting to a calculated scheme that drained over $214,000 from unsuspecting account holders. Michael B. Gaines, the disgraced manager, used his position of authority to pilfer funds from dormant accounts between 2015 and 2016, according to federal prosecutors.
The scheme, cooked up with a complicit employee, involved reactivating long-forgotten accounts and systematically withdrawing funds. Gaines and his partner allegedly used their access to Tri-State’s computer systems – their user I.D.s – to manipulate the accounts and funnel the stolen money. A portion of the ill-gotten gains were reportedly shared with the co-conspirator, while the rest was deposited directly into Gaines’ personal bank account.
U.S. Attorney D. Michael Dunavant didn’t mince words, calling the fraud “disturbing and far-reaching.” He emphasized the betrayal of trust inherent in the crime. “The abuse of his position of trust and authority as a bank manager for his own personal gain had a significant negative impact on the employees and customers of Tri-State Bank,” Dunavant stated. The U.S. Attorney’s Office has made it clear that protecting financial institutions is a top priority.
Gaines now faces a December 6, 2018 sentencing hearing before U.S. District Court Judge John T. Fowlkes. He pleaded guilty to one count of conspiracy, carrying a maximum penalty of 5 years imprisonment and a $250,000 fine. The embezzlement charge carries a far heavier potential sentence – up to 30 years behind bars and a $1,000,000 fine. The combined penalties could keep Gaines locked up for decades.
The investigation was spearheaded by the United States Secret Service, highlighting the agency’s role in combating financial crimes beyond its more well-known protective duties. Assistant U.S. Attorney Damon Keith Griffin is leading the prosecution, building a case based on evidence gathered by the Secret Service and the financial records of Tri-State Bank.
While the full extent of the conspiracy remains under scrutiny, the guilty plea marks a significant step toward justice for the victims of Gaines’ greed. The case serves as a stark reminder that even those entrusted with safeguarding financial assets are not immune to criminal temptation, and that federal authorities are actively working to hold them accountable. The Western District of Tennessee will continue to pursue these cases vigorously.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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