Curtis A. Kroesen and Misty L. Kroesen were each sentenced in federal court to a year and a day in prison plus three years’ supervised release, said Patricia Hartman, spokeswoman for the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
The Kroesens were employees of Equipment Finance, a subsidiary of Sterling Financial Corp., the parent company of Bank of Lancaster County. There, they participated in a multiyear fraud that cost Equipment Finance, which underwrote equipment purchases for the logging industry, at least $53 million, prosecutors said. The fraud, uncovered in 2007, undermined Sterling’s financial stability, leading to its sale to PNC Financial Services Group Inc. in 2008.
Under a plea agreement, the Kroesens each pleaded guilty to one count of mail fraud. In all, eight defendants have pleaded guilty in the case; two remain to be sentenced, Hartman said. The sentences include orders to make restitution of the $53 million.