Kolling civil case could be dropped: Pending federal lawsuit outcomeThe civil malpractice case involving a Dickinson woman who pleaded guilty to bank fraud last year could be dropped, pending the federal lawsuit goes forward.
By: Betsy Simon, The Dickinson Press
The civil malpractice case involving a Dickinson woman who pleaded guilty to bank fraud last year could be dropped, pending the federal lawsuit goes forward.
Elizabeth Kolling, a former trust officer at Bank of the West in Dickinson, looted one account of $582,800 and stole $131,591 from Betty Reichert, who was one of Kolling’s clients, according to information in a plea agreement.
Attorney Kim E. Brust, representing Bank of the West at a status hearing Monday via teleconference at the Stark County Courthouse, said an agreement has been reached with Paul Ebeltoft, attorney for the estate of Betty J. Reichert to dispose of the civil case.
“The entire (civil) case will be dismissed, as long as restitution and the criminal proceedings go forward,” Brust said. “We’re getting close to deadlines in the (civil) suit, so we’d like a pending motion to stay the deadlines. Ultimately, I think the case will be dismissed.”
According to the complaint, Kolling made numerous transfers from a trust set up by Reichert to Kolling and members of Kolling’s family.
Kolling also sold Reichert’s potentially lucrative rights to income
from oil exploration and production in four western North Dakota counties to herself and her husband, Wally Kolling, for $1,764, court records state.
The thefts took place from 2001 through 2008, court records state.
Both Kolling and her husband, pleaded guilty last year to conspiring to
commit bank fraud.
Brust said the terms of restitution and payments of various forms in the federal case are still to be determined.
Ebeltoft said once the judge in the federal case presents his written order restitution order the court will be informed, so the civil suit can be dealt with.
Judge Dann Greenwood said he did not see a reason for the court to interfere with the resolution the two parties have come to and granted the stay.
However, Greenwood did request that both sides keep the court updated on the status of the federal suit and return in six month for a status conference on the motion to stay, meaning the civil proceedings are temporarily halted.
The Kollings were due to be sentenced in the federal lawsuit late last year, but the sentencing was postponed to give the Kollings and prosecutors more time to work out a repayment agreement.
The sentencing in the federal case against the Kollings has been rescheduled for April 12, Brust said.