Former bank official indicted

A former employee of First Interstate Bank in Kalispell pleaded innocent Tuesday to embezzling more than $700,000.

Cheryl Serfoss, 38, of Kalispell is charged with bank fraud, a federal crime that carries a penalty of up to 30 years in prison and a fine of up to $1 million, plus five years supervised release.

According to a grand jury indictment, Serfoss "knowingly executed a scheme to defraud First Interstate Bank" from October 1996 through August 2002.

She allegedly embezzled about $759,000 in cash and, "to perpetuate the scheme and cover up the loss," created false entries in the records of the bank.

Included in the indictment are three aggravating factors. The first is the amount of loss to the bank. The second is that Serfoss' alleged conduct involved sophisticated means. Finally, the grand jury found that she abused a position of private trust.

Officials at First Interstate Bank Tuesday would not say what position Serfoss held with the bank, referring to a policy not to comment on cases involving pending litigation or criminal prosecution.

Serfoss was arraigned before U.S. Magistrate Bart Erickson in Missoula. There is no trial date set.

The case was investigated by the FBI.