Hills Bank seeks money from Sueppel estate

Hills Bank seeks money from Sueppel estate

August 28, 2008

Lee Hermiston

Iowa City Press-Citizen

Hills Bank and Trust is seeking more than half a million dollars from the estate of Steven Sueppel, according to court records.

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Sueppel, the former vice president and controller for the bank, died March 24.

Police said Sueppel killed himself after killing his wife, Sheryl, and the couple’s four children in their Iowa City home.

According to court records, Hills Bank and Trust is seeking $556,040 from Sueppel’s estate, the funds Sueppel allegedly embezzled over the course of several years. The bank also wants $32,673 in loans he took out.

Prior to his death, Sueppel was charged with one count of embezzlement and six counts of money laundering. The court alleged that during a seven-year period, Sueppel embezzled $599,040 from Hills Bank. He also allegedly laundered a total of $13,500 from Aug. 23, 2007, to Sept. 17, 2007, according to his indictment.

According to Johnson County Sheriff’s Office search warrants, Sueppel told investigators he used some of the missing money to purchase cocaine. However, police later said Sueppel never purchased any drugs with the money.

With Sueppel’s death, the criminal case against him was thrown out. He was facing up to 30 years in prison, a $1 million fine and five years probation for the one charge of embezzlement. For each of the six counts of money laundering, he would have faced up to 20 years in prison, a fine of at least $500,000 and three years probation.