Former REA Express president Tom Kole, scheduled to stand trial later this month for embezzlement, has been indicted on new charges of making a false statement to a bank.

The new indictment -- which prosecutors said was not related to Kole's embezzlement trial -- was filed in U.S. District Court in New York.

The indictment charges Kole filed a false statement with First Pennsylvania Bank Corp. involving $474,000 in overdue loans.

Kole also is accused of taking more than $100,000 in company funds. He is to be tried Jan. 30 on those charges, along with Rena Stanchfield, his sister-in-law.

At a pre-trial hearing, federal lawyers revealed they will not prosecute Stephen Finkel, former director of advertising and public relations for REA, who had been indicted on similar charges.

A fourth former REA executive indicted for embezzlement, Richard Simpson, last Friday pleaded guilty to conspiracy to embezzle the REA funds, which allegedly were used to finance Kole's horse-racing business, to pay his debts and to make cash payments to politicians.

Judge Charles L. Brieant ordered prosecutors to make a sealed report to him on the alleged political payoffs, naming the political figures and detailing the date and amount of the payoffs. That report is due Friday, but will not be made public unless the matter comes up during the trial, prosecuters said.

Simpson once an REA vice president, agreed to testify against his former boss as part of a plea bargain in which two of the three charges against him were dismissed. He told Brient that, as an REA vice president, he had "knowingly approved false invoices" as part of the scheme to embezzle corporate funds.

Simpson and Kole allegedly set up a phony advertising agency in Florida, then billed the company for services.

Kole faces up to five years in prison and $10,000 in fines on embezzlement and conspiracy counts and another two-year term for the new indictment filed this week.

REA Express -- the former Railway Express Agency -- was the nation's biggest air and ground express service before it went bankrupt two years ago.