By James Clark - email
LUBBOCK, TX (KCBD) - Lubbock-based City Bank is suing its bond company after losing less than $1 million to an employee's embezzlement. In February, Mary Francis Dunn pleaded guilty to a charge of Misapplication of Bank Funds By a Bank Employee. In short she admits to embezzling $787,378.08.
City Bank claims in a lawsuit filed Thursday that BancInsure Inc. of Oklahoma, a financial institution bond company, refuses to pay the bank for its loss and as such it's a breach of contract.
Although the dollar amounts differ from the criminal case to City Bank's civil lawsuit, the background story is substantially the same. Dunn was stealing money from PlainsCapital for roughly five years. When she left PlainsCapital and went to work at City Bank she found a way to transfer the losses from PlainCapital to City Bank by manipulating a customer's line of credit. According to official records in her criminal case, Dunn then continued stealing from City Bank for about two years.
Dunn will be sentenced at a later date to no more than 30 years in prison. BancInsure has not yet filed its side of the story in court records.
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