Peoples Bank & Trust Company

Bank Information

Episode Type: Suspension → Closure
Bank Type: trust company
Start Date: January 25, 1927
Location: Shelbyville, Kentucky (38.212, -85.224)

Metadata

Model: gpt-5-mini
Short Digest: 6970656b

Response Measures

None

Description

Article (Mar 11, 1927) reports that the State Banking Commissioner closed the institution on January 25 (1927) after embezzlement by an employee (Vardeman) of about $60,000; affairs are in process of liquidation. No run is mentioned; closure appears permanent/liquidation.

Events (1)

1. January 25, 1927 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Closure followed discovery of embezzlement and false ledger entries by Otho H. Vardeman totaling over $60,000; bank placed in liquidation by state banking commissioner.
Newspaper Excerpt: The State Banking Commissioner closed the institution on January 25 and its affairs are now in process of liquidation.
Source: newspapers

Newspaper Articles (1)

1. March 11, 1927 The Shelby Sentinel Shelbyville, KY

Article from The Shelby Sentinel, March 11, 1927

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Article Text

Tries to Get Away Lacks Few Minutes Vardeman, Who Has Been Occupying The Main Spot In The Limelight For Some Time, Fails To Saw Himself Out "I WANNA' GO HOME," HE SAI In the steel cage on the second floor of the courthouse back of the Shelby Circuit Court room, at 7:30 o'clock Sunday afternoon, Otho H. Vardeman, wrecker of the Peoples Bank & Trust Company, was busily engaged in sawing the bars that held him captive from the outside world. A brief quarter of an hour was all that was needed for his liberty. Jailer Bryant, who had gone into the courthouse early Sunday night, heard the noise made by the saw and the thought that Vardeman was making an attempt to gain his liberty flashed across his mind. Hastily yet quietly, he crept up to the prisoners' cage and found his suspicions verified. In explanation for his effort to free himself from his confinement, the prisoner coolly informed the official that he had no intention of running away but merely wanted to see his wife and children. Since his arrest Vardeman had been occupying the jail until Fri day when he was removed to the prisoners' cage in the courthouse. This was necessary so that the jail could be fumigated, cleaned and repaired. All the other prisoners were taken to the Franklin county jail at Frankfort. The fear that Vardeman might escape en route to Frankfort led the officials to holding him here as the safer alternative. After the discovery made by our jailer, Vardeman denied that he upper part barred. Recently in order to make an opening to serve food to the prisoners without unlocking the door an opening was made in the cage by sawing off the ends of two of the bars and with a steel clamp held them firmly in place. It was at this little opening that Vardeman was busily sawing away in the hope of gaing his liberty, when discovered by Jailer Bryant. On Monday morning under escort of Deputy Sheriff M. M. Haley, Vardeman, wearing handcuffs, boarded the Louisville Interurban car at 11:45 and was soon on *his way to Louisville, where he was placed in the Jefferson county jail to await his call for trial at the May term of the Shelby Circuit Court. The prisoner's removal to the Louisville jail, was as a step precautionary to his safe and sure confinement until his case will be called for trial. The grand jury of the February term of court returned against Vardeman eight indictments, two for embezzlement and six for making false entries upon the ledger of the Peoples Bank & Trust Company. His operations covered a period of about five years and his peculations totalled over $60,000. The State Banking Commissioner closed the institution on January 25 and its affairs are now in proces sof liquidation. Unable to give a bond of $16,000, Vardeman remains in jail.