PORTLAND, Maine — A Rockland woman made her first appearance Monday in U.S. District Court on one count of bank fraud after being arrested Friday.
Shauna L. Quinn, 44, allegedly created home equity lines of credit and loans in the names of family members between July 2008 and
June 2011 totaling nearly $540,000 while working for Rockland Savings Bank in Rockland, according to the complaint.
Quinn, who was fired in June 2011, misappropriated $538,795 through improper advances on loans and lines of credit not authorized by the bank, the complaint said. The fraud was concealed, in part, through a scheme in which loan advances were used to make payments on other loans in order to keep the loans in a “current” status.
U.S. Magistrate Judge John H. Rich III on Monday ordered that Quinn be held without bail pending a detention hearing, expected to be held later this week. The U.S. attorney’s office, which is prosecuting the case, has filed a motion asking that Quinn be held without bail pending the outcome of her case because she is a flight risk.
Quinn’s alleged crime became public in a civil suit filed by her brother, Christopher Wellman, and his wife, Tara Wellman, of Hope against Rockland Savings Bank in Knox County Superior Court. The lawsuit, which did not name Quinn, alleged that the bank was negligent for failing to account for the wrongful transactions of its employee.
The Wellmans have maintained that a bank employee stole at least $95,000 from Christopher Wellman’s accounts and took out a $68,000 loan in his name over a three-year period without his knowledge and without benefit to him, according to a previously published report.
The bank, however, argued in its response to the lawsuit that Quinn embezzled money and used it to benefit herself and family members that included her brother.
Superior Court Justice Jeffrey Hjelm last month dismissed five of 10 counts in the Wellmans’ lawsuit against the bank — fraud and fraudulent concealment, negligent infliction of emotional distress, breach of fiduciary duty, deceptive trade practices and violation of state laws that govern financial institutions. The judge, however, ruled that parts of the remaining charges involving fraudulent misrepresentation remain, as do the potential losses from negligent misrepresentation and negligence.
If convicted, Quinn faces up to 30 years in prison and could be ordered to pay restitution.