Tuesday, October 21, 2014

Great Media Series On Embezzlement

Kathy Jessup, a local journalist in Michigan, has begun an excellent six part series of articles on embezzlement.  They are terrific exposes on this topic and I encourage all of my readers to check it out.  The first two articles have been published and can be viewed here and here

Thanks, Kathy! for your first rate work.

Monday, October 20, 2014

Michigan Woman Accused Of Embezzling $460K From Nursing Home Residents

From www.mlive.com on 10/17/2014:

LAPEER, MI – The Lapeer County woman accused of embezzling more than $460,000 from residents at a Rochester Hills nursing home has been arraigned and is free on bond.

Tina Marie Binkley, 44, of Almont, was arraigned Thursday, Oct. 16, according to the Attorney General's Office. The charges include two counts of embezzlement from a vulnerable adult of $100,000 or more, with each charge punishable by up to 20 years in prison and a $50,000 fine or three times value of the money or property involved, whichever is greater.

Oakland County District Court Judge Julie Nicholson set Binkley's bond at $25,000 cash or surety, which she posted on Friday, Oct. 17, according to the Attorney General's Office.

Investigators allege money was taken from 136 residents from the Boulevard Health Center.

Authorities said Binkley was fired in April 2013 from her job as the facility's business manager after allegedly failing to follow standard financial reporting procedures.

The case was referred to the Attorney General's Office after an accountant hired by the facility noticed bookkeeping discrepancies. Binkley allegedly had access to a general account for facility income and day-to-day expense, as well as a trust fund.

Binkley was arrested Thursday, Oct. 16, by special agents from the Department of Attorney General after an investigation by the state Attorney General's Health Care Fraud Division.

Binkley is scheduled to be in court for a pre-exam conference on Tuesday, Oct. 21, at 10 a.m. and will be assigned a court-appointed attorney.

Municipal Clerk In Kansas Sentenced In $190K Embezzlement Case

From the Topeka Capital Journal on 10/18/2014:

A federal judge on Friday sentenced the former Auburn clerk to 12 months and one day of imprisonment after pleading guilty to felony embezzlement.

Alice Riley, 61, was ordered to pay to the city of Auburn full restitution in the amount of $189,594.05 and to serve one year of supervised release after her imprisonment. Chief Judge J. Thomas Marten also issued a special condition to her release: a prohibition on gambling.

As many as five family members and friends came out for Riley’s hearing, including her sister, Grace Bowser, who serves as city clerk of Mayetta in Jackson County. Those there for support could be seen wiping away tears during the proceeding.

“I know that I've done something awful,” Riley said when the judge asked for a comment. The rest of her statement was inaudible from the back of the courtroom.
Marten ordered Riley to self-surrender after Jan. 1, 2015 — so she can have some time to pull things together and get through the holiday season, the judge said.

While incarcerated, Riley will have to make monthly restitution payments to Auburn equal to no less than 10 percent of the funds in her inmate account. When she gets out, Marten said, 5 percent of her monthly income will go toward paying back the city of Auburn.

Riley intends to pay back all the money, said her defense attorney, J. Richard Lake. In advocating for a reduced prison sentence, he said Riley “would like to begin that as soon as possible.”

“In your case, Miss Riley, you are going to have to do some time,” Marten said. “Twelve months and a day might seem like a slap on the hands to some, but it's not.”

The extra day allows Riley to be let out early on good behavior, which, Marten said, likely would reduce her sentence to 10 months.

Riley in July pleaded guilty to a federal embezzlement charge. She resigned Feb. 13 amid questions from the Auburn City Council and multiple-year audits into the city’s finances. She served in the appointed position for 31 years.

The federal government alleges Riley, between 2009 and 2014, embezzled at least $186,000 from Auburn, where she managed payroll and other accounts as the city clerk. Prosecutors say Riley issued duplicate payroll checks to herself, as well as other unauthorized checks she deposited into her personal accounts. She attempted to cover up the embezzlement by creating false entries in the city’s books and bank statements.

Auburn Councilwoman Micki Bicknell was present for Friday’s sentencing, but declined to comment given the ongoing civil suit the city is pursuing against Riley in Shawnee County District Court. The case still is in the pretrial phase, said Auburn’s attorney Todd Luckman. However, with the sentencing and guilty plea in the federal case, he doesn’t imagine it will be fought to the end.
Riley's guilty plea can be used against her in the civil suit, and prevents her from filing an appeal in federal court.

The city’s civil case claims Riley embezzled more than $196,000, so it will be required to prove that figure, Luckman said.

...

Possible $700K Embezzlement Investigated In Oklahoma

From KJRH Ch. 2 on 10/17/2014:

MUSKOGEE, Okla. - Police are currently investigating reports of possible embezzlement from the Muskogee Children’s Clinic.

According to Muskogee police, funds in excess of $700,000 have been reported missing from the clinic, located at 3101 Chandler Road.

Clinic staff called police to report the crime Friday.

Police say the funds were discovered missing during an inquiry by the Internal Revenue Service. They were confirmed when an independent auditor was hired by the clinic.

The IRS said payroll taxes haven't been paid since the clinic hired an independent auditor.

Police say the man who worked on finances for the Muskogee Children's Clinic funneled money from the business into his personal account.

New Mexico Couple Sentenced In $874K Embezzlement Case

From the Associated Press on 10/20/2014:

A former New Mexico couple has been sentenced to five years of supervisory probation after pleading guilty to embezzlement and tax evasion charges in a case that involved the theft of hundreds of thousands of dollars from an Albuquerque family business.

State authorities say 37-year-old Antoinette Greenlee and her husband, 48-year-old James Greenlee Jr., were sentenced last week.

In addition to probation, they must pay restitution to the woman's father for embezzling money from his construction materials business.

A criminal complaint says the couple stole $874,000 from Post-Tensioning Reinforcing Services during an 18-month period in 2010 and 2011 while they worked for the company.

The Greenlees, who now live in Texas and operate their own steel business, also failed to pay state income taxes on the embezzled income.

Former Receptionist For Medical Practice In New Jersey Allegedly Embezzled $446K

From the Associated Press on 10/20/2014:

Federal prosecutors say a woman has admitted embezzling more than $446,000 from the northern New Jersey medical practice where she formerly worked as a receptionist.

They also say 53-year-old Gwendolyn Muller used fraudulent credit cards to obtain more than $200,000 in goods and services and evaded taxes on that illegal income.

Muller, who formerly lived in Kearny, pleaded guilty Monday to embezzlement, credit card fraud and tax evasion charges. She faces up to 25 years in prison when she's sentenced Feb. 19 and will forfeit $556,000 to the United States government.

From 2007 through 2011, prosecutors say Muller used her position to take, conceal and cash more than $446,000 in checks paid by insurance companies to the medical practice for services to patients.

Monday, October 6, 2014

FraudTalk Interview With Terrorism & Global Security Expert Brian Michael Jenkins

Do not miss today's episode of FraudTalk on the Voice America network (http://www.voiceamerica.com/show/2349/fraudtalk).  My very special guest will be Brian Jenkins, a world renowned expert on terrorism and global security issues.  We will be discussing ISIS, al-Qaeda, the Middle East, Ebola, Russia, and much more.  Brian is Senior Advisor to the President of the RAND Corporation.  Read his bio here: http://www.rand.org/about/people/j/jenkins_brian_michael.html

Join me live at 10 a.m. EST or listen to us at your leisure to the audio file.

Here is the link to the audiofile: http://www.voiceamerica.com/episode/80844/global-security-and-risks-with-brian-michael-jenkins

Thursday, October 2, 2014

Business Journal: Embezzlement Survival Guide

From the Central Valley Business Journal (10/1/2014):

STOCKTON — Dealing with the possibility of betrayal by employees is one of the hardest aspects of owning and operating a business. Still, with the growing number of embezzlement cases both in the Central Valley and across the nation, it’s something no business owner can ignore.

“The owner says, ‘We treated this person like family. We couldn’t imagine them doing something like this,’” said Chris Marquet, CEO of Marquet International, a boutique investigative firm. “The owners need to do the right thing and take care of their fiduciary duties. Many entrepreneurs love the creating, social and business aspects of their jobs. A lot don’t care about the back end, the office aspects of it.”

Ignoring those “office aspects” can be costly. In two recent Stockton-area cases, employees were accused of stealing more three quarters of a million dollars from their employers.
In January 2011, Brenda Kemper pleaded guilty and was sentenced to three years in prison for stealing nearly $500,000 from Big Valley Aviation. The 59-year-old bookkeeper was a longtime, respected employee of the firm.

Sawtantar Singh Jaspal, a manager at hat manufacturer Dorfman Pacific Company, was arrested in June at his home in Tracy, accused of embezzling $277,000 from the company. In September, Jaspal entered guilty pleas to embezzlement and tax evasion and was sentenced to five years in prison.

These are just two of the most recent in what has been an uptick in embezzlement cases across the country.

“The first thing to understand is this phenomena is happening all the time, all over the country,” said Marquet. “Employers really have to keep on eye on things.”
One of the biggest traps that employers fall into is placing too much trust in a single employee. Bakul Patel, Dorfman Pacific Company’s chief financial officer, found that out the hard way when the company discovered irregularities with Japsal’s work.

“You give managers a certain level of trust,” Patel said. “A manager can create a fictitious business, and he then has the power to pay those businesses.”

That is a fairly common scam used by embezzlers, according to San Joaquin County Deputy District Attorney Stephen Taylor. Taylor prosecutes many of the embezzlement cases in the county and has seen an increase in cases since the recession.

“I don’t know that there are more crimes being committed now,” he said. “When you have harder economic times, businesses are more conscious of where every dollar is going. More of these crimes are discovered. You look back in history, and you see the same thing during the depression in the ‘30s.”

Marquet International released a report in 2013 that studied the trend nationwide. The average embezzlement scheme went on for 4.7 years before being discovered and the median loss for companies was $340,000. The average prison sentence for a convicted embezzler was 49 months.
Marquet said that tough economic times can also prompt people to do things they wouldn’t otherwise do.

“Many times, these people led a regular life and any number of issues led them to just say, ‘I’ll borrow this money and pay it back,’” Marquet said. “Well, they can’t pay it back, and it just keeps going on. You have people that are faced with losing a house or maybe a spouse’s business is suffering, and they do things they might not otherwise.”

Another contributing factor that Taylor often sees is compulsive behaviors that contribute to the thefts. Nearly a third of cases nationwide involved perpetrators who had gambling issues.
“People have drug or gambling problems that they fund this way,” said Taylor. “We’ve had several cases where people used the money for gastric bypass surgery.”

So what are business owners to do? Investigators and police agree that monitoring employees’ financial activities is the key to uncovering and preventing such crimes.

“These are not difficult crimes to uncover,” said Taylor. “They are all in writing.”

That means keeping track of where expenses are going. Employers need to make certain the vendors and employees being paid really exist. That can be a challenge for smaller businesses that lack the employees to doublecheck the books.

“Our accountant came in and helped us put in some additional processes,” said Dorfman Pacific’s Patel. “Now we have dual signing of checks instead of just one manager signing.”

Doing extensive background checks and knowing the history of those in charge of a company’s financial dealings is also vital.

“We had a case where a lawyer was ripped off by an eighth grade dropout,” said Taylor. “We have had companies that have hired people right out of drug rehab and put them in charge of large sums of money.”

Getting stolen money back from an alleged embezzler is often impossible. Embezzlers have often already spent the money that they stole from an employer by the time they’re caught.

“It’s not like they usually have the money laying around,” said Taylor. “They have usually spent that money on trips, or gambling or items they wanted.”

That is one reason that protecting one’s business beforehand is so important. Getting various forms of insurance is an important and relatively inexpensive way for businesses to protect themselves. Dorfman Pacific Company had such policy which made up for the majority of the loss.
“Our insurance paid us back for most of the loss,” said Dorfman’s Patel.

A fidelity bond is a form of insurance protection that covers policyholders for losses they incur as a result of fraudulent acts by specified individuals.

While called bonds, these obligations to protect an employer from employee-dishonesty losses are similar to insurance policies in most respects. A $5,000 bond for a company with five employees or fewer can cost as little as $100 per year. A $25,000 bond for the same employer can cost around $170 per year. The larger policies are determined by the employers size, and industry but can still be a company-saving investment.

“We recommend these to our business clients,” said Rick Sanguinetti, insurance agent and customer service representative at Sanguinetti Insurance. “The bond will cover whatever you amount you choose. The only hangup is there is a conviction clause in most cases.”

Many insurance policies have endorsements that also cover these kinds of crimes, but business people need to check to make sure the policies cover embezzlement.

One of the best things business owners can do is to help prevent theft before it ever occurs. Keeping track of exactly what comes in the mail each day may not be the most exciting part of running a business, but it can save owners a lot of headaches, according to area insurance and law enforcement officials.

“Creating an environment where this kind of crime isn’t easy to occur is a big step in preventing losses for businesses.” said Taylor.

Monday, September 29, 2014

Fraud Talk Interview with Cheryl Obermiller - Small Business Embezzlement Survivor

Check out today's FraudTalk interview with Cheryl Obermiller, a small businesswomen and major embezzlement survivor.  Cheryl is in the process of completing her book, My Accountant’s Drawers ~ the Small Business Owner’s Guide to Outwitting Embezzlers, Thieves and Scallywags, due to be published in late 2014.  Her story is a compelling one that every small business owner should hear.  In fact, when her book comes out - it should be required reading at any credible business school.  Her lessons are not taught there these days and, with the proliferation of embezzlement schemes in today's business world, they should be.

Join me Monday's at 10 a.m. EST for Fraud Talk on the Voice America online platform.  My host page is here

Thursday, September 25, 2014

Report: Lawsuit claims ex-worker stole $2 million from PBS

From the Boston Globe 9/25/14:
 
Lawsuit claims ex-worker stole $2 million from PBS

By Deirdre Fernandes
Boston Globe
September 25, 2014

The former finance director of PBS’s video distribution arm in Boston is alleged to have stolen more than $2 million from the public broadcasting network over the course of about four years, according to court records.

The alleged embezzlement came to light in a lawsuit filed Monday by PBS’s insurance company against Citizens Bank in US District Court in Boston. The suit alleges that Christopher C. Morris, who worked for a PBS subsidiary that sells DVDs and video-on-demand of popular shows, deposited more than 200 checks meant for PBS in his own private account, and it contends that Citizens should have been aware of the fraud.

Federal law enforcement officials are investigating, according to the PBS subsidiary, Public Media Distribution. No charges have been brought in the case, according to court records.

The office of US Attorney Carmen M. Ortiz declined to comment, as did Citizens Bank. Morris, whose last known address was in Chelsea, could not be reached.

In a statement, Public Media Distribution, said, “There is current law enforcement activity regarding this issue and we cannot comment at this time.”

 PBS, which stands for Public Broadcasting Service, and its state affiliates are nonprofits that rely on taxpayer funding and the goodwill and trust of individual and corporate donors. But the network also has some money-making entities, such as Public Media Distribution, a joint venture between PBS and Boston public television’s WGBH Educational Foundation.

Public Media Distribution generated $48.7 million in profits in 2012, according to the latest federal tax filings.

Morris worked for the distribution company until 2012. Company officials declined to provide more specific information about when Morris was hired and the circumstances of his departure. Morris sold his Chelsea condominium in early 2013 for $312,000, according to real estate records.

Morris deposited 202 checks made out to PBS totaling $2.1 million into his own account starting in 2008 continuing until at least 2012, according to the lawsuit filed by Federal Insurance Company, a New Jersey firm that covers PBS and its subsidiaries. The checks were not from the network’s fund drives but from consumers and companies buying PBS and WGBH programming such as “Downton Abbey,” the Civil War series by documentary filmmaker Ken Burns, and the children’s program, “Arthur.”

The checks should have been deposited into PBS’s Bank of America account. But the lawsuit alleges Morris forged a PBS endorsement on the checks and presented the checks to Citizens for deposit into his own account

“Citizens Bank did not conduct any reasonable inquiry or question the appropriateness of the deposits when the checks were presented to Citizens Bank and accepted,” Federal Insurance said in the lawsuit.

Federal Insurance, which covered PBS for employee theft, paid the nonprofit $2 million, the limit of the policy’s liability. The insurer is seeking to recover that money from Citizens, plus legal and other costs.

Federal Insurance on Wednesday filed a motion asking the court to seal the original complaint and allow Federal Insurance to submit a redacted version concealing the name of the former employee and PBS, according to court records.

WGBH was the victim of employee theft a few years ago. In 2010, a former accounting manager at WGBH-TV pleaded guilty to stealing nearly $500,000 from the station over nine years.

Such thefts deliver a blow to the reputations of charities, because they are built on trust and the expectation that the money they receive is used appropriately, said Chris Marquet, the owner of Marquet International, a Boston investigative firm that publishes an annual report on white-collarfraud.

“It’s never a good thing,” Marquet said. “They are probably no doubt going to have show the world that they have safeguards in place.”

Thefts from charitable organizations are fairly common, usually because they do not have the resources and structure for strict oversight, Marquet said. One in six major embezzlement cases in 2012 involved charities or religious organizations, according to Marquet’s study.

Public Media Distribution is set up as separate company from PBS and WGBH, with its own leadership and employees. But executives from WGBH, which owns a 40 percent stake in the distribution company, sit on its board of directors.

Monday, August 18, 2014

Fraud of the Week: Texas Couple Charged With Embezzling $2.3 Million

From the CW on 8/8/14:

A Lubbock couple has been charged with embezzling $2.3 million from a Lubbock asphalt company.

Sargent Jason Lewis said 54-year-old Paula Whitley and her husband, 60-year-old Robert Whitley were arrested and charged with theft of $200,000 or more after the owners of Armor Asphalt went to LPD, concerned about where their money was going. Their business has been devastated by the loss of funds.

Lewis said Detective Laz Walck and his team of investigators are to thank for putting the case together.

"After going through different computers, obviously paper files, computer files, lots of different evidence. They were able to determine that more than $2 million had actually been embezzled," Lewis said.

The investigation is ongoing. It is unclear if other businesses have been targeted.

Monday, August 11, 2014

Join Me Today For A Fraud Talk Discussion On Ponzi Schemes

Join me this morning at 10 a.m. EST for another episode of Fraud Talk on the Voice America radio network (http://www.voiceamerica.com/show/2349/fraudtalk).  My guest this morning will be Jordan Maglich, the creator of the PonziTracker blog and the Ponzi Database.  The discussion will be all about Ponzi Schemes as you can imagine.  Listen live or at your leisure to the audio file.  We hope you join us.

Monday, August 4, 2014

Join Me Today For Fraud Talk Radio On Voice America Network

Join me this morning live at 10a.m. EST for Fraud Talk radio program on the Voice America network (http://www.voiceamerica.com/show/2349/fraudtalk).  My special guest this week is Gary Zeune of The Pros & Cons speakers bureau.   Listen live and call in to join the discussion at (866) 472-5790.  Otherwise, listen to the podcast at your leisure.

Monday, July 21, 2014

Join Me Today For Fraud Talk - Live On the Voice America Radio Network

I will be live on the Voice America online radio network at 10 a.m. EST for Fraud Talk, my weekly program about fraud in America.  My guest this week is Jim Ratley, the President and CEO of the Association of Certified Fraud Examiners and we will be discussing the ACFE's Report to the Nations.

Case of the Week: Finance Professor & Bookkeeper in Washington State Sentenced For Embezzling $800K

From the Union Bulletin:

A former Walla Walla University finance professor and self-employed bookkeeper will spend time in federal prison on a charge of wire fraud in connection with the theft of more than $800,000 from a local dentist.

Dana G. Thompson of College Place was sentenced in U.S. District Court in the Tri-Cities this week to serve 18 months in prison.
 
Thompson taught finance at the Seventh-day Adventist university in College Place for 15 years and kept books for about 13 years for Walla Walla Dental Care owner Dr. Dan Laizure.
 
Thompson pleaded guilty in April and in May told the Union-Bulletin there were extenuating circumstances in the case, but did not give additional details.
 
The theft from Laizure was carried out by writing unauthorized checks from the dentist to himself, banks and other people in guise of insurance company refunds, according to court documents. Upon deposit, those checks electronically debited Walla Walla Dental care’s account.
 
In addition to his prison sentence, Thompson was ordered to pay $823,832 in restitution. Laizure is to be repaid $773,832, while $50,000 will go to Traveler’s Insurance for costs associated with Laizure’s investigation of the loss of money.
 
Thompson has handed over $34,000 from the sale of his home and a gold coin collection, according to court documents.
 
Court documents from his sentencing hearing Tuesday state Thompson will be on probation for three years following his release from prison. He will have to make all financial information available to his probation officer, including authorization to conduct credit checks and see federal income tax returns. Thompson also must disclose all financial assets and liabilities to the supervising officer, and he cannot sell or give away an asset without court approval.
 
As well, Thompson cannot incur any new debt, open lines of credit or enter into any financial contracts without permission from his probation officer, sentencing documents said.
 
Authorities may search him, his home, office or vehicle at any time during his probation, and he must complete a mental health evaluation and follow certain treatment recommendations.
 
Thompson has waived his right to appeal. The court recommended he serve his sentence at the federal prison in Sheridan, Ore.
 
Laizure said Thursday he refuses to be “bogged down” with the incident, and is looking forward.
 
“This is out of my hands,” the dentist said. “I have way too many things to think about for the future.”

Monday, July 14, 2014

Fraud of the Week: Missouri Woman Indicted For Embezzling Nearly $3 Million Causing Company To Go Bankrupt

From the  FBI on 7/1/14:

Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., woman has been indicted by a federal grand jury for a nearly $3 million fraud scheme that forced her employer into bankruptcy. 
Irene Marie Brooner, 52, of Kansas City, was charged in an 11-count indictment returned under seal by a federal grand jury in Kansas City on Friday, June 27, 2014. That indictment was unsealed and made public today upon Brooner’s arrest and initial court appearance. 
Brooner, a certified public accountant, worked at Galvmet, Inc., a sheet metal fabrication facility and steel service center located in Kansas City, from 2001 until her termination in February 2014. At its peak in 2008, the company had 26 employees and $14 million in annual sales. Galvmet filed for bankruptcy and ceased operations in 2014. At the time of closing, the company had 18 to 20 employees and $10 million in annual sales. 
Brooner’s duties as controller included managing payroll, accounts receivable and payable, and maintaining the ledger at Galvmet. 
According to the federal indictment, for approximately 10 years (January 2004 until February 2014) Brooner created unauthorized Automated Clearing House (ACH) transactions from Galvmet’s bank account. An ACH is a batch-oriented funds transfer system that includes direct deposits of payroll from companies. Brooner allegedly deposited these funds into her personal bank accounts. Brooner also manipulated ACH transactions to inflate her salary, the indictment says, by increasing her bi-weekly payments without the knowledge or authorization of her employer. She allegedly deposited these funds into her bank accounts. 
As a result of Brooner’s fraud scheme, the indictment says, Galvmet lost at least $1,863,914. As a result, Galvmet declared bankruptcy, and was forced to cease operations. To keep the scheme going, Brooner allegedly falsified documents to support Galvmet’s operating loan with Missouri Bank & Trust, causing a loss to the bank of $1.1 million. Brooner allegedly converted the embezzled funds for her personal enrichment. The total loss from Brooner’s alleged fraud scheme was at least $2,963,914. 
Brooner allegedly spent the embezzled funds on personal items. According to the indictment, Brooner spent some of the proceeds to remodel, stock, furnish and decorate the basement bar of her new home. The bar, which she called “the Dirty Duck,” includes seating for approximately 15, a granite bar top, four or five tap lines, a refrigeration system, three flat-screen televisions, a smoke machine at the entrance, two couches and stained wainscoting around the room approximately eight feet tall. Mannequins, positioned throughout the bar, are outfitted with authentic U.S. and German uniforms and weaponry from the World War II era, including a Thompson sub-machine gun and multiple M-1 Garands with attached bayonets. Brooner told FBI agents that her husband, a carpenter, remodeled the bar in 2003 and 2004. From 2004 to 2014, Brooner spent $18,383 on alcohol. 
According to the indictment, Brooner’s spending included paying off her mortgage for $289,290, buying $81,686 in jewelry, and spending at least $400,392 on clothing and other retail, $97,180 on restaurants, $78,439 on vehicles, $169,389 on furniture and home decor, $62,003 on travel, $38,317 on electronics, $21,346 in ATM withdrawals, $59,571 on spa visits and beauty items, $68,745 on tuition for her children, $18,383 on alcohol, $104,060 to her children, $216,377 in assorted checks under $500, $64,557 in donations, $254,168 in other credit cards, and by purchasing other items. 
Brooner purchased a 2004 Lexus R33 sport utility vehicle, the indictment says, on which she made 64 payments totaling $51,813. Brooner also bought 69 pieces of jewelry and accessories from Meierotto’s Midwest Jewelers totaling approximately $29,701 and 82 pieces of jewelry and accessories from Tivol Jewelers totaling approximately $51,984.
The federal indictment charges Brooner with three counts of bank fraud, five counts of wire fraud and three counts of money laundering. 
Wire Fraud Scheme
Brooner allegedly sent approximately 148 unauthorized ACH transactions from Galvmet’s bank account to her personal checking account, resulting in $1,144,113 in loss to Galvmet. In addition, Brooner allegedly set up a second payroll payment that was sent via ACH to her personal savings account. Brooner allegedly sent about 133 unauthorized ACH payments to her savings account, resulting in $560,230 in loss to Galvmet. She allegedly transferred the funds to her checking account and spent the money on personal items. Brooner also manipulated the payroll account to increase her net pay on approximately 108 payroll checks, the indictment says, resulting in loss to Galvmet of $159,570. 
Bank Fraud Scheme
Brooner prepared borrowing base certificates on behalf of Galvmet for the purpose of obtaining and maintaining a corporate line of credit for business operations from Missouri Bank & Trust. A corporate line of credit, issued to a business entity by a financial institution, allows the business to draw on the credit when needed, rather than receiving the entire amount at one time. 
Brooner allegedly falsified borrowing base certificates. According to the indictment, the statements contained false entries concerning the accounts receivable and inventory numbers. The statements allegedly included customers shown as outstanding who, in fact, had already sent payments to Galvmet. By failing to post the payments received, the indictment says, Brooner made the accounts receivable appear to be greater in value than they really were. Brooner also allegedly misrepresented Galvmet’s inventory on the borrowing base certificate. Brooner reported inventory even if it had not been sent in-transit to Galvmet, the indictment says, which inflated the amounts on the balances to ensure Galvmet would continue receiving loan proceeds on the line of credit. This allowed the company to continue operations, the indictment says, which enabled Brooner to both conceal her embezzlement and continue to embezzle more money. 
Forfeiture Allegation
The indictment also contains a forfeiture allegation, which would require Brooner to forfeit to the government any property derived from proceeds of the alleged offenses, including her personal residence, a 2004 Lexus, numerous assorted jewelry and a money judgment of at least $2,963,914.