KINGSPORT — The founder of Capitol Armored Services has pleaded guilty in U.S. District Court to embezzling $7,000 from the Federal Reserve Bank in Atlanta over a two-month period earlier this year.
Jeffrey Scott Tankersley pleaded guilty in U.S. District Court in Greeneville last month to one count of embezzlement of more than $1,000. Tankersley faces a maximum sentence of 10 years in prison and a $250,000 fine when sentenced on Feb. 4, 2008.
According to court records, Tankersley is the president and owner of CAS, a Kingsport-based business that provides transport and security services for financial institutions within the Tri-Cities.
One of CAS’s principal business activities is to transport U.S. currency and coinage for the Federal Reserve Bank of Atlanta’s Nashville branch to and from banks and other financial institutions in East Tennessee. As part of that activity, CAS would temporarily store the money in its vault in Kingsport.
On Aug. 6, another officer of CAS discovered coinage missing from the vault. The FBI was subsequently informed of the missing coinage, and an investigation began.
FBI agents interviewed Tankersley at the CAS office the next day, where he admitted to embezzling approximately $7,000 in $1 coins on three occasions between June 1 and July 30 of this year.
Court records state Tankersley admitted to exchanging the coins for cash at First Tennessee Bank and Eastman Credit Union and that he used the cash to pay personal expenses.
Greeneville attorney Nikki Pierce, who represents Tankersley, advised him not to comment on the matter until after sentencing.