Federal Reserve Exec Sentenced In PhonyCheck Scam

SAN ANTONIO, Texas - (07/13/05) -- A former vice president with theFederal Reserve Bank of Dallas was sentenced last week to 21 monthsin prison for using his position to get bad checks, many of themissued on H-E-B FCU in San Antonio, past merchants. Taylor Barbee,52, pleaded guilty to issuing 38 bogus checks worth $16,500 on thecredit union between Oct. 2003 and March 2004 using fictitiousnames of "T.H. Arbeer" and "Del. R. Taylor." Barbee was alsoordered to pay $10,521 in restitution, fined $200 and to pay $100to a fund for crime victims. Barbee used his post at the Fed totake routing numbers from bounced checks, which are sent to the Fedby banks, and opened accounts using the numbers and fictitiousnames. He also used fake identities so merchants would accept thechecks.