Ex-bank official pleads not guilty
Ex-bank official pleads not guilty
Davenport Former Hills Bank & Trust executive Steven F. Sueppel, accused of stealing $559,040 from the bank, pleaded not guilty to embezzlement and money laundering charges at a U.S. District Court arraignment Wednesday.
Judge Thomas Shields set trial for April 21.
Sueppel was released on $250,000 personal bond, which he would pay only if he violates terms set for his release. The judge noted that Sueppel doesn't have a criminal history and government officials do not consider him a flight risk.
Sueppel, 42, of 629 Barrington Rd. in Iowa City, has been charged with one count of embezzlement of bank funds and six counts of money laundering while serving as the bank's vice president and controller. The government also is seeking the forfeiture of the $559,040 Sueppel is accused of stealing.
The embezzlement charge carries a maximum penalty of 30 years in jail, a $1 million fine and five years of supervised release. Each money laundering charge is punishable by up to 20 years in jail, a $500,000 fine or twice the value of the funds allegedly stolen, and three years' supervised release.
Wednesday's arraignment was Sueppel's first court appearance since a federal grand jury indicted him last week. The indictment, which followed an investigation by the FBI and the Johnson County Sheriff's Office, says the alleged thefts began on July 26, 2000, and continued until Sept. 12, 2007.
The hearing lasted 15 minutes. Sueppel, dressed in a navy blue suit and wearing glasses, spoke only when the judge asked questions, giving mostly short yes and no answers.
Sueppel told the judge he works now at Superior Concrete in Iowa City. He did not specify what kind of work he does but said he does not handle money.
Shields forbid Sueppel from handling cash or checks for an employer. Sueppel also cannot possess any firearms, narcotics, controlled substances or drugs without a prescription. He must be in regular contact with a probation officer and could be subject to drug tests.
Three search warrants executed by the Sheriff's Office and filed in Iowa City in Johnson County District Court reveal that Hills Bank officials reported on Oct. 4 that they had noticed discrepancies in one of the asset accounts Sueppel managed.
A document used to apply for one of the search warrants says Sueppel admitted to bank officials to stealing more than $219,000 over three years and using most of it to buy cocaine. However, he was not charged with anything drug-related and no illegal drugs were found at his home when the search warrant was executed Oct. 4.
Sheriff Lonny Pulkrabek said in an e-mail message there is no evidence Sueppel spent any money on drugs. Sueppel's attorney, Leon Spies of Iowa City, said after the hearing he was not sure of the circumstances surrounding Sueppel's alleged confession to bank officials. But, he said, "I can assure the community and your readers that drugs had nothing to do with this case."