Former bank executive pleads guilty to theft for spending $220,000 of bank funds at ‘gentlemen’s clubs’

Posted June 10, 2014, at 1:10 p.m.

PORTLAND, Maine — A former TD Bank vice president pleaded guilty Tuesday in federal court to felony theft after using a company credit card to pay for $220,000 in charges at “gentlemen’s clubs.”

Jeffrey C. Burnham, 41, of Arundel faces up to 30 years in prison and a $1 million fine for the Class B felony of theft by a bank officer, Assistant U.S. Attorney Craig M. Wolff said in a release.

The longtime employee, whose office was in Falmouth, was accused of using the card on 72 occasions at “several different gentlemen’s clubs” located in Maine, Massachusetts, New York and Florida between February 2011 and February 2012, according to documents filed in U.S. District Court.

Burnham then allegedly described the expenditures as legitimate business expenses, including conferences, meals with employees or clients and membership dues. The bank then paid the credit card bills, the court records show.

In one case, Burnham’s credit card statement showed a charge to “La Grange, Boston, Massachusetts” for $10,088 incurred on Dec. 2, 2011, the complaint alleges. La Grange operates the gentlemen’s club Centerfolds in Boston.

After Burnham left the bank in February 2012, a bank employee opened his most recent corporate credit card statement and noticed charges at La Grange and Kenkev II Inc. in Portland. Kenkev II operates PT’s Show Club, a gentlemen’s club in Portland.

According to prosecutors, Burnham chargedabout $35,000 at Centerfolds and PT’s Show Club between Jan. 24 and Feb. 20, 2012.

Burnham allegedly admitted the fraud to the company, according to an affidavit filed by Paul S. Pritchard III, a Federal Bureau of Investigation special agent. Burnham later allegedly admitted to Pritchard that he used the card at the clubs.

Burnham was released on the $5,000 unsecured bail originally set in May.

He will be sentenced after completion of a pre-sentence investigation report by the U.S. Probation Office.

BDN writer Judy Harrison contributed to this report.

 

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