Cliff Buchan
Forest Lake Times

A former bank manager in Forest Lake will be in court next week accused of embezzling $34,859.80 during the four plus years that he worked at Lake Area Bank.

Ross Allen Pihl, 37, of Chisago City, has been charged in Washington County District Court with one felony count of theft by swindle following a three-month investigation by the Forest Lake Police Department. Pihl is slated to make a court appearance on June 19 in Stillwater.

Pihl managed the Forest Lake office of Lake Area Bank from January of 2001 through July of 2004. It was after Pihl resigned from the bank that bank officials became suspicious of activities involving the former manager, according to the criminal complaint filed in the case.

In July of 2005, bank officials notified the FBI and the federal agency began an investigation of "questionable loans approved by the defendant as well as suspicious cashiers checks and other transactions made or approved by the defendant," the complaint said.

When the scope of the investigation was determined, the probe was handed over to Forest Lake police.

Local investigators executed a half dozen search warrants during the investigation, including one at Pihl's home where art work purchased in Forest Lake was seized.

On March 6, local officers arrested Pihl on probable cause of theft by swindle. The arrest followed the execution of the search warrant at the Pihl home in Chisago City.

He was booked in the Washington County Jail in Stillwater and held for one night before being released pending formal charges.

The criminal complaint in the case was signed on April 12 and Pihl has now made his initial court appearance for a Rule 5 hearing, Forest Lake police said.

The complaint

According to the criminal complaint, bank officials and investigators uncovered problems with certain loans originated by Pihl during his time of employment with Lake Area Bank. No problems were detected while Pihl worked at the bank, but were found after he resigned, the complaint said.

The complaint indicates the bank found 48 cashier checks which were suspect and several transactions from the bank general ledger which were also suspect.

In its investigation of suspect cashier checks, the probe determined that transactions were made that ranged from the purchase of season tickets for the Minnesota Vikings to newspaper and magazine subscriptions.

Other cashier checks were issued to insurance companies and other banks with cashier checks placed as payments into a personal Visa account that belonged to Pihl, the complaint said.

Other cashier checks and general ledger transactions were explained as being used for customer and employee relations, building maintenance or other supplies, the complaint said.

Seven cashier checks were made payable to St. John's University, Collegeville, for a total of $1425. The investigation determined that the checks were made as donations by Pihl and his wife and not on behalf of the bank, the complaint said.

Pihl is also accused of being paid mileage reimbursement of $16,860.40 during his time of employment with the bank. No receipts or expense reports could be located by the bank to support the payments, the complaint said.

Pihl is now free and awaiting his next court date.

After leaving Lake Area Bank, he reportedly went to work for another bank, but is now on leave of absence.

If convicted of theft by swindle, the defendant could face a maximum sentence of 10 years in prison and a fine of $20,000.