23069. Peoples Bank (Keyser, WV)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 27, 1922
Location
Keyser, West Virginia (39.441, -78.974)

Metadata

Model
gpt-5-mini
Short Digest
02cfcdfd

Response Measures

None

Description

Bank did not open on April 27, 1922 after discovery of cashier's unauthorized certificates and defalcation. Commissioner took charge and later a receiver was appointed (July 19, 1922). The bank remained closed and was placed in receivership; later partial distributions to depositors are reported. Although Article 1 notes some withdrawals before the closure, there is no evidence of a full run causing the suspension — closure was due to cashier fraud/irregular transactions.

Events (3)
1. April 27, 1922 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of cashier Thomas Leps issuing unauthorized certificates of deposit and making loans/securities without authority (defalcation/irregular transactions).
Newspaper Excerpt
The Peoples Bank of Keyser, a state institution, did not open its doors today. State Banking Commissioner J. S. Hill, who has taken charge of its affairs...issued certificates of deposit aggregating $10,900, of which there is no record...Leps resigned as cashier Saturday
Source
newspapers
2. July 19, 1922 Receivership
Newspaper Excerpt
RECEIVER NAMED FOR KEYSER PEOPLE'S BANK...Charles N. Finnell...has been appointed receiver for the Peoples Bank of Keyser...The bank was closed April 27, when irregular transactions were disclosed.
Source
newspapers
3. December 19, 1922 Other
Newspaper Excerpt
DEPOSITORS COLLECT 40 PER CENT FROM BANK...The depositors of the People's Bank, which closed its doors early in the year, due to the defalcation of the cashier, T. D. Leps...have received another 20 per cent, making 40 per cent paid them by Charles N. Finnell, receiver.
Source
newspapers

Newspaper Articles (4)
1. April 28, 1922 The Wheeling Intelligencer Wheeling, WV
Article from The Wheeling Intelligencer, April 28, 1922

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Article Text

BANK CLOSED; CASHIER AWAY Issuance of $10,000 in Certificates Discovered-Depositors Get All. Keyser. W. Va., April 27-The Peoples Bank of Keyser, a state institution, did not open its doors today. State Banking Commissioner J. S. Hill, who has taken charge of its affairs. in a statement says Thomas Leps, cashier issued certificates of deposit aggregating $10,900, of which there is no record and about which the directors know nothing. Leps resigned as cashier Saturday, and is not now in Keyser. The bank was closed before there could be a possible run although some scented trouble yesterday and withdrew accounts. The total resources are about $700,000 with deposits of over $500,000. Frank H. Babb is president of the bank. Commissioner Hill says: "It seems from information obtained that the certificates of deposit issued by Leps were in payment of loans made by him without authority, and in payment of securIties issued by him without authority." He adds: "There is n strong possibility from the information obtained that the whole situation may be cleared up in a short time. In any event, I have no hesitancy in advising that it appears all depositors will be paid in full." Cashier Leps left Keyser last Saturday, his destination ostensibly being Pocomoke City, Md., although he purchased a ticket for Philadelphia. His family consists of his wife and three children. His aged mother, Mrs. Susan Leps, resides here. She is considerably past eighty years. Cashier Leps has been active in practically all civic matters at Keyser. He is an official member of the Presbyterian church and is prominent in Masonic and other fraternal organizations.

2. July 20, 1922 Martinsburg Journal Martinsburg, WV
Article from Martinsburg Journal, July 20, 1922

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Article Text

PAGE EIGHT RECEIVER NAMED FOR KEYSER PEOPLE'S BANK Keyser, July 19.-Charles N. Finnell, member of the Mineral county bar, has been appointed receiver for the Peoples Bank of Keyser, by State Bank Commissioner J. S. Hill. Attorney Finnel furnished bond in the sum of $50,000. The bank was closed April 27. when irregular transactions were disclosed.

3. August 17, 1922 The Calhoun Chronicle Grantsville, WV
Article from The Calhoun Chronicle, August 17, 1922

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Article Text

Keyser-Charles N. Finnell, lawyer, has been appointed receiver for the Peoples National Bank of Keyser, which closed its door after the arrest of the cashier, Thomas Eléps, who is now serving a seven year sentence at Moundsville, The appointment was made by State Bank Commissioner J. S. Hill.

4. December 19, 1922 The Washington Times Washington, DC
Article from The Washington Times, December 19, 1922

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Article Text

DEPOSITORS COLLECT 40 PER CENT FROM BANK KEYSER, W. Va., Dec. 19.-The depositors - of the People's Bank, which closed its doors early in the year, due to the defalcation of the cashier, T. D. Leps, now serving sentence at Moundsville, have received another 20 per cent, making 40 per cent paid them by Charles N. Finnell, receiver. Many of the depositors had the savings of their lifetime in the institution. It is said the depositors may recelve as much as 90 per cent, provided the receiver does not have to pay the $105,000 represented by certified deposit slips, held by a Washington bank. If this amount is paid from the Peoples' Bank, the depositors will receive considerably less and the stockholders will be heavy losers. It is understood the persons who were the beneficiaries of the