Manlius, New York, man pled guilty to embezzling from NBT Bank, N.A. of Norwich, New York.

October 26, 2006

GLENN T. SUDDABY, United States Attorney for the Northern District of New York, and JOHN F. PIKUS, Special-Agent-in-Charge, Federal Bureau of Investigation, Albany Division, announced today the guilty plea of LANCE D. MATTINGLY, age 46, formerly of Manlius, New York, for embezzlement from NBT Bank, N.A. of Norwich, New York. MATTINGLY pled guilty before Senior U.S. District Judge Frederick J. Scullin, Jr. to felony bank fraud charges relating to his diversion of approximately $169,000 from NBT Bank, where he had been employed as the Chief Information Officer. LANCE D. MATTINGLY faces up to 30 years in prison and fines of up to $1,000,000, when he is sentenced before Judge Scullin in Syracuse, New York on June 22, 2007. MATTINGLY paid full restitution to NBT Bank prior to the entry of his plea and has consented to a prohibition from future participation in the affairs of any federally insured financial institution.

From February 2001, LANCE D. MATTINGLY was employed by NBT Bank, N.A. as the Chief Information Officer. In that capacity, he had access to checks payable to NBT Bank, N.A. and other entities and also exercised control over many of the electronic records of the bank. In entering his guilty plea, LANCE D. MATTINGLY, admitted that, between February 2004 and October 2005, he executed a scheme and artifice to defraud NBT Bank, N.A. by diverting a total of approximately 27 checks payable to NBT Bank and other entities, to which he was not entitled. He transferred the proceeds of these checks to bank accounts controlled by MATTINGLY, for his personal use and benefit. In or about October 2004, MATTINGLY attempted to conceal his continuing diversion of funds from NBT Bank by establishing a demand deposit account at that bank using a variation of the name and social security number of related individuals. By this scheme, MATTINGLY caused losses to NBT Bank and others of approximately $169,281.72. He has paid restitution to NBT Bank of that amount, as well as approximately $37,000 in investigative and other costs incurred by the bank.