Seattle Man Convicted On Bank-Fraud Charges

TACOMA

A Seattle man has been convicted of bank fraud and money laundering by a U.S. District Court jury.

Gary J. Keister, 52, was convicted of one count of conspiracy, 33 counts of bank fraud, four counts of money laundering and two counts of making false statements to a federally insured bank.

U.S. District Judge Jack E. Tanner has scheduled sentencing for September 11. Keister was denied bail yesterday and will remain in the Pierce County Jail until sentencing.

Keister was the owner of Augustine Unlimited, a construction-hardware wholesale business in Tukwila that he ran from 1986 until April 1988, when he sought Chapter 11 bankruptcy protection for the company. He was accused of making false statements to First Interstate Bank of Washington to obtain loans totaling $1.2 million dollars, Assistant U.S. Attorney Gene Porter said.

Rather than invest the money in Augustine Unlimited as intended by the bank, Keister spent the loans on personal debts, homes and other businesses, Porter said. Keister paid most of the money back, but the bank lost between $200,000 and $400,000, Porter said.