LaFollette Man Pleads Guilty to $1.8 Million Check Fraud Scheme

January 26, 2010 - John Dale Henegar, 42, of LaFollette, Tennessee, pled guilty in federal court today before the Honorable Thomas A. Varlan, United States District Judge, to an Indictment charging him with a federal bank fraud offense arising from a check fraud scheme involving a $1.8 million check drawn on a Canadian company's account. Sentencing has been scheduled for June 10, 2010. Henegar could receive a sentence of up to thirty (30) years' imprisonment and a $1,000,000 fine.

Today's guilty plea was to a July 21, 2009, federal grand jury indictment which charged Henegar with defrauding Home Federal Bank, located at 300 Main Street, Jacksboro, Tennessee. According to court documents, Henegar admitted that in February 2005, he presented a check to Home Federal Bank for deposit and withdrawal, in the amount of $1,843,322.39, that was payable to “JOHNSGIFTS (CHEQUE # 222361) 101 APRIL LANE LAFOLLETTE, TENNESSEE 37766 REF: JOHN HENEGAR” and drawn on a Bank of Montreal account of Agilysys Canada, Inc. Henegar falsely represented to Home Federal Bank that he had received the $1.8 million check as payment for a “computer software program” that he had sold to Agilysys Canada, Inc. for $1,843,322.39. Relying on Henegar’s fraudulent and material misrepresentation and inter-bank automated clearinghouse verification procedures, Home Federal made the proceeds of the $1.8 million Agilysys check available to Henegar. The $1.8 million check had originally been payable to International Business Machines. Prior to being indicted, Henegar admitted to law enforcement agents that “in terms of the Agilysys check I knew this check was a scam.”

This investigation was conducted by the United States Secret Service and the Federal Bureau of Investigation. Assistant U.S. Attorney F. M. (Trey) Hamilton III represented the United States.