CLEVELAND Former Cortland woman indicted in bank fraud

CLEVELAND -- A federal grand jury has returned a one-count indictment against a former Cortland woman accused of attempting to defraud Second National Bank, formerly Trumbull Savings and Loan Co.
U.S. Attorney Emily Sweeney announced Wednesday the indictment against Debbie Jean Leonard, 44, of Marblehead, formerly of Maplewood Drive. The indictment follows an investigation by the Cleveland office of the U.S. Secret Service.
What happened: Sweeney said the bank suffered losses of $194,975 between November 1993 and February 1996, when Leonard obtained 66 U.S. Savings Bonds using three different people's names, without consent from those individuals.
The indictment says she then added her name, Social Security number and address to the front of each bond, making it appear she was co-owner of the bonds.
Leonard deposited about $170,627 of bond proceeds into checking and savings accounts in her and her husband's names, the indictment says.
Authorities also believe Leonard took about $17,425 of the bond proceeds in cash, or in the form of cashier's checks and money orders payable to her creditors.
The maximum penalty facing Leonard is 30 years in prison, a fine of up to $1 million, or both.
The case is being prosecuted by assistant U.S. Attorney Robert W. Kern, a member of the Financial Institution Fraud section of the Cleveland U.S. Attorney's Office.