Former Labette banker convicted in embezzlement scheme

Jurors on Wednesday found a former Labette banker guilty of six criminal counts connected to an embezzlement case.

Keith L. Shaffer, 61, of Altamont was convicted in federal court of misapplication of bank funds, wire fraud, misappropriation of insurance funds and three counts of making a false statement on a federal tax return, U.S. Attorney Tom Beall said in a statement. Prosecutors during his trial showed that Shaffer, while a salaried employee, diverted more than $134,000 in commissions generated through sales of insurance into his personal bank accounts when the money belonged to the bank.

At the time, Shaffer was managing a bank subsidiary called Labette Insurance Company.

He also lied to the bank and the Internal Revenue Service during the scheme, Beall said.

Shaffer is scheduled to be sentenced on Feb. 6. He faces up to 30 years in federal prison for misapplying bank funds, up to 20 years for wire fraud and up to 10 years for misappropriating insurance funds.

He could draw up to three years in prison on each count of lying on a tax return, Beall said.

This story was originally published November 16, 2016 at 2:59 PM with the headline "Former Labette banker convicted in embezzlement scheme."