A former bank manager in the US state of Missouri has been indicted on charges of bank fraud and embezzlement.

The former vice president and manager of the Ellington branch of People's Community State Bank (PCSB), Irvin Eddington Jr, is accused of issuing fraudulent letters of credit (L/Cs) while he was at the bank.

Embezzlement

A federal grand jury indicted Eddington on one count of bank fraud and one count of embezzlement by a bank employee.

The former bank manager allegedly embezzled US$49,000 from customers' funds, according to the indictment.

It says he prepared and used fraudulent money orders to obtain the funds between February 2010 and October 2011.

L/C frauds

The former banker also allegedly created numerous unsecured irrevocable L/Cs backed by PCSB in favour of his personal associates without the knowledge or approval of the bank's board.

One L/C alone was allegedly in the amount of $507,035 and made out to one of his associates.

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