The former branch manager of the East Ridge branch of Cornerstone Community Bank was sentenced on Thursday to serve 37 months in federal prison.
Prosecutor Gary Humble said Misty Lynn Smith embezzled $430,000 from the bank, taking money from the accounts of several customers.
One of the customers came into the bank expecting to find thousands of dollars in his CD account and discovered there was only $300 left, said Judge Curtis Collier, who handed down the sentence.
Defense attorney Mike Caputo asked for a lighter sentence, citing problems Ms. Smith had growing up and calling a psychiatrist to say she was driven to try to please others and get their approval.
The counselor said she bought some dresses for herself, but used most of the money for gifts for her husband, John David Smith, and others, including Christmas gifts.
He said, "She always intended to pay the money back, but it began to snowball on her and it became bigger than she could manage."
Attorney Caputo said the money was all spent. He said, "There are no off shore accounts. It's gone."
He said the bank had to cover $50,000 and the rest was paid by an insurance company.
Ms. Smith was ordered to repay the $430,000.
Prosecutor Humble said she could have been charged with falsely using the identification of customers and that would have carried another possible two-year sentence.
He said the scheme was carried out over an extended period, saying, "She stole a lot of money on a number of occasions."
Judge Collier said he received a number of letters in her behalf, including one from Pastor Michael Battles, who said Ms. Smith had handled money for the church - apparently without incident.
She will be on probation for five years after her release.
She must report to prison by Aug. 24.