LV law firm sues bank over embezzlement

Wednesday, Aug. 15, 2001 | 11:09 a.m.

A Las Vegas law firm sued First Security Bank of Nevada, alleging the firm's former legal administrator was able to embezzle $424,785 from its accounts because of the bank's alleged negligence.

Jones Vargas sued the bank in Clark County District Court, alleging it failed to follow its own policies and procedures when it accepted on April 6, 1999, a bogus checking account agreement from its then legal administrator, Stevan Millet, and allegedly improperly transferred $424,785 out of one of the firm's accounts with First Security.

Millet, who was employed by Jones Vargas for about 15 years until he was terminated on Sept. 28, was indicted on April 4 on four counts of subscribing to a false tax return and one count of interstate transportation of stolen property.

Millet pleaded guilty on April 13 to all five counts and was released on a personal recognizance bond as part of a plea bargain agreement. A hearing on Millet's sentencing is this week.

Kirk Lenhard, Jones Vargas' attorney, said: "Millet's indictment was the result of his alleged embezzlement of Jones Vargas' funds. He was indicted because he didn't report the money he stole from us as income."

"We're suing First Security for the $424,785 in checks that it cashed," he said. "Millet had embezzled nearly $1 million from us in 1999 and 2000, but those funds were taken from accounts we had with other banks."

First Security officials and Kenneth Cory, Millet's attorney, could not be reached for comment. First Security is now owned by Wells Fargo & Co.