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Michigan bank trust officer steals nearly $800K, gambles most of it away

Muskegon woman convicted of bank fraud, embezzlement, aggravated identity theft

The scheme ran from 2006 to 2019. (Canva Pro)

MUSKEGON, Mich. – A former bank trust officer from Muskegon has been sentenced to jail after stealing nearly $800,000 to gamble.

According to authorities, 71-year-old Kathleen Ann Matteson would submit bills to her employer from a shell company she owned that didn’t do anything, write duplicate payroll checks to herself and take funds out of customer trust accounts. More than $780,000 was stolen between 2006 and 2019. She reportedly hid her actions by falsifying records and her actions weren’t revealed until after retired.

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Court documents claim she spent most of the money was spent on casino gambling activities.

Matteson was charged in 2023 with bank fraud, embezzlement, and aggravated identity theft. She pleaded not guilty and her trial began in April 2024.

A jury convicted Matteson on all charges. She was sentenced Thursday, Aug. 15, to 61 months in prison and two years of supervised release.


About the Author

Dane Kelly is a digital producer who has been covering various Michigan news stories since 2017.

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