KeyBank theft charges in Ohio top $40M

CLEVELAND – Federal prosecutors now say a former KeyBank vice president embezzled $40.6 million, up from a previous estimate of $29 million.

The new charges against David F. Verhotz, 56, were outlined in a court filing Friday in U.S. District Court.

Verhotz, who has been fired as the head of the bank’s international loans unit, stole the money between 1997 and 2003, prosecutors said.

Verhotz lived a life of luxury, buying a multimillion dollar home on Long Island and spending $1.1 million on his fiancee’s engagement ring, according to testimony at a pretrial hearing last month.

KeyBank is owned by KeyCorp., which has more than 900 branches in Alaska, Colorado, Idaho, Indiana, Kentucky, Maine, Michigan, New York, Ohio, Oregon, Utah, Vermont and Washington.