Friday , February 16, 2018 - 5:00 AM
SALT LAKE CITY — A former Bountiful bank manager pleaded guilty to money laundering after embezzling more than $565,000 and buying a house with the diverted sum.
In a plea bargain document, federal prosecutors promised to recommend punishment on the low end of sentencing guidelines for Daniel Scott Frischknecht, 33, who appeared Wednesday, Feb. 14, in U.S. District Court.
The maximum penalty for money laundering is 10 years in prison, three years of probation and a fine of $250,000.
Frischknecht will be sentenced April 25 by Judge Dale Kimball. He will remain free until sentencing.
Frischknecht was the Bountiful branch manager of Zions Bank, 5 N. Main St., in May 2017 when he diverted money to a personal credit union account, then wired it to a title company to complete the purchase of the home in Bountiful’s Old Orchard subdivision, federal attorneys said in court documents.
The plea agreement said Frischknecht transferred $70,000 in bank funds on Feb. 9, 2017, and $495,000 on May 8, using a bank customer’s line of credit.
The crimes were discovered after Frischknecht tried to conceal the second transaction with a false general ledger entry.
Before Frischknecht was indicted Sept. 19, the U.S. Attorney’s Office filed a civil asset forfeiture claim to seize the house. But the claim was dropped after the bank said it recovered all the money from Frischknecht.
In the plea deal, Frischknecht was given credit for paying full restitution, and prosecutors agreed not to pursue a wire fraud charge. The maximum penalty for money laundering is 10 years in prison, three years of probation and a fine of $250,000.
Frischknecht also is banned from seeking or obtaining employment with a bank, credit union or other entity insured by the Federal Deposit Insurance Corporation.
Sign up for e-mail news updates.