A former vice president at the Bank of O'Fallon (Illinois) is facing federal charges in an alleged check kiting scheme of nearly $2 million as well as a scheme to defraud two bank customers of more than $400,000.

Andrew P. Blassie, 69, the executive vice president at the bank at the time, defrauded the bank over the course of a year from September 2023 to September 2024, according to a release from the U.S. Attorney's Office in the Southern District of Illinois.

Blassie, of St. Louis, is accused of inflating the balance of his account at the bank by depositing checks written from accounts owned by he and his wife at other institutions. When these bad checks were returned to the Bank of O'Fallon by the banks they were drawn upon, Blassie deposited more checks from those banks into his Bank of O'Fallon account in ever larger amounts, a charging document reads.

The document accuses Blassie of using his position to intercept the bank's daily "kiting suspects report," which identified suspects potentially involved in check kiting. He physically cut out his name and account number, creating an altered version of these reports that didn't contain his name and account number, providing the altered report to other executives at the bank, the charging documents allege.

In September 2024, Blassie deposited into his Bank of O'Fallon account a check for $1.965 million that was drawn on an account in his wife's name at another bank, the charging document reads.

Charges allege that Blassie used his inflated balance to pay personal expenses including $642,000 to American Express.

He is also accused of defrauding a married couple who were customers of the bank. Blassie is alleged to have persuaded them to withdraw $429,000 of their retirement savings that had been invested at the bank and provide to him the funds for investment.

Blassie promised he would pay the couple interest for the funds. He gave the customers copies of Security First Bancshares Inc. stock certificates.

Needing to pay back a $4 million loan to an individual from St. Louis, Blassie is alleged to have sold the stock, later telling the couple their principal was gone and the stock certificates he pledged to them were worthless.

Blassie faces one count of bank fraud and one count of interstate transportation of security or funds obtained by fraud.

The bank fraud charge is punishable by up to 30 years’ imprisonment. The interstate transportation of security or funds obtained by fraud can result in up to 10 years in federal prison.

“Senior bank officials must act as fiduciaries, not felons — they must serve the bank, not swindle it,” U.S. Attorney Steven D. Weinhoeft said in a release. “The federal justice system leads the fight against corruption in all its forms, and the allegations in this case — a $2 million check kiting scheme and a $500,000 investor rip-off — are glaring examples of the type of financial betrayal that will not be tolerated.”