A former First Hawaiian Bank employee Friday admitted in federal court that she opened 56 personal checking, consumer loan, personal lines of credit and credit card accounts to embezzle $2.6 million from the bank.
Lani Ann Miho, 52, pleaded guilty before U.S. District Judge Michael Seabright. Miho stole $2,683,494, and ultimately all of it was repaid.
She faces up to 30 years in prison and a $1 million fine when she is sentenced June 4.
When she was a bank branch manager, Miho said she could open new accounts and approve unsecured loans of up to $50,000.
Miho said after she had approved loans and the bank deposited the money into the accounts, she "went up to the teller line and cashed checks" made payable to "cash" from the accounts.
Federal prosecutor Ron Johnson said this went on from July 2000 to September 2010, during which time Miho worked as a personal banker and branch manager on Oahu and Hawaii island, including Hilo and Honokaa. He said First Hawaiian fired Miho, an employee of nearly 29 years, in November 2010 after bank officials discovered what she had done.
Of the $2.6 million Miho embezzled, she made loan payments totaling about $2 million. Johnson said Miho sometimes created new accounts to pay amounts due on older accounts and even had other employees inform her which fraudulent accounts were becoming delinquent.
After Miho was caught, enough money went back into the accounts to zero out their balances, Johnson said. But because of possible additional costs and fees, Miho might still have to pay some restitution.
Miho’s lawyer, William McCorriston, said he does not believe his client is liable for any restitution. He said Miho and the bank reached a settlement agreement and Miho repaid the bank what it is owed before the FBI began its investigation into Miho’s embezzlement.
First Hawaiian Bank said Miho last worked at its Hilo branch.
"She is no longer employed by First Hawaiian Bank," Brandt Farias, marketing director for First Hawaiian Bank, said. "There was no adverse customer impact as a result of her employment here."
Farias declined further comment.
