Property seizure lawsuit on hold pending criminal investigation of Howard County bank embezzlement

JEFFERSON CITY, Mo. (KMIZ)

A lawsuit to seize Howard County property allegedly gotten through illegal means is on hold while a criminal investigation plays out, according to court records.

The federal government sued in late May to seize a piece of land owned by Megan, Harry Marshall, Harry A. and Brenda J. Dougherty. Federal authorities say the Doughertys used money Megan Dougherty embezzled from her employer, the Exchange Bank of Missouri, before the scheme was discovered last October and she was fired.

U.S. District Judge Brian C. Wimes last week approved the government's request to put the case on hold pending a criminal investigation into the alleged embezzlement.

A complaint in the civil case alleges Megan Dougherty moved money from bank customers' accounts into her account and mislabeled records to cover up the fraud. The activity started as early as 2008, authorities allege.

The bank reimbursed nearly $2.4 million to the accounts of customers who were victims, the complaint says. Some of the money was used to buy, improve and pay property taxes on the piece of land the government is trying to seize, court filings say.

Among the improvements was a machine shop with concrete floors.

A spokesperson for the U.S. Attorney's Office declined to comment on the investigation.

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