GREENEVILLE (WATE) – A former First Tennessee bank employee in Greeneville was sentenced Monday to three years in federal prison for embezzling over $900,000 and evading paying taxes.
Kenneth L. Miller, 37, pleaded guilty in October to theft by a bank officer and attempting to evade or defeat tax. In addition to a sentence of 36 months in prison, he will be on probation for five years and must also pay $844,254.79 in restitution to First Tennessee Bank, $161,018 to the Internal Revenue Service, and $81,014,18 to two additional victims.
U.S. Attorney Nancy Stallard Harr’s office says Miller was an employee of the bank from May 2000 to February 2016. His plea agreement states his scheme involved a variety of techniques, including earning and abusing the trust of various clients by telling them he would invest their money for their benefit and using his position as a bank manager to identify clients who id not review their monthly statements. He also would identify inactive accounts from which to embezzle money because he knew the owners would be unlikely to detect it.
Upon discovering the embezzlement, First Tennessee reimbursed most of the losses to the account holders.
Harr’s office says MIller obtained around $967,573.25 for his own personal use, most of which he either lost or spent on online gambling or various consumer debts. Miller did not claim any of these funds as income, and therefore evaded paying taxes in the amount of $161,018.