Bank files motion for default judgment in suit against former employee

By John Suayan, Galveston Bureau | Oct 4, 2012

GALVESTON - Frost Bank entered a motion for default judgment in its lawsuit against a former employee. 

The 34-page motion, filed Sept. 20 before the Galveston County 10th District Court, claims ex-administrative assistant Michelle Lauryn Osteen failed to meet the Sept. 17 deadline to submit her response to the bank's allegations.

Frost is suing Osteen in an effort to recoup $97,216.45 it believes she obtained "in a fraudulent manner."

According to the suit filed in August, Osteen "did knowingly and fraudulently obtain funds from a number of trust accounts administered by Frost."

The respondent was indicted on 15 counts of fraud and one count of identity theft on Sept. 27, 2010.

She executed a plea agreement on April 18, 2011, and was found guilty of a bank fraud charge on Aug. 31, 2011.

A federal court sentenced her to a year and a day incarceration in the U.S. Bureau of Prison system.

It also ordered her to undergo supervised release for three years upon her release as well as remit the funds back to the complainant.

Osteen has not paid Frost back to this day, the suit says.

The defendant is reportedly still under federal custody.

Case No. 12-cv-1801

More News

The Record Network