Update On Florida Ponzi Scheme Case: Nadel Is Indicted On 15 Fraud Counts

Arthur G. Nadel, 76, of Sarasota, Florida, has been formally indicted on 15 counts of securities fraud, wire fraud and mail fraud in connection with his alleged Ponzi scheme investment fraud involving his Scoop Management Inc. money management company. Prosecutors alleged that he bilked at least 350 investors out of as much as $360 million. The indictment includes six counts of securities fraud, eight counts of wire fraud and one count of mail fraud. Nadel allegedly told investors that his securities trades generated $271 million in gains when in fact they had a net loss. Nadel was charged in January by the SEC with securities fraud and Nadel went missing. He ultimately turned himself into authorities after two weeks on the run. He faces as much as 280 years in prison if convicted on all counts.

Read FraudTalk's earlier posts on this story here, here and here.

Read the story here.

Update On Tennessee TARP Ponzi Schemer: Grigg Is Indicted

Gordon Burns Grigg, 46, of Nashville, Tennessee was formally indicted last week on charges he operated a Ponzi scheme with firm, ProTrust Management Inc., defrauding investors out of as much as $6.5 million with fraudulent investments in the Troubled Asset Relief Program (TARP). In January, the SEC obtained a court order freezing the assets of Grigg and ProTrust. According to the SEC complaint, Grigg represented himself as a financial planner and investment adviser, but neither he nor his firm is registered with the agency or a state regulator. He fraudulently represented to clients, whose funds he had control over, that they were invested in the TARP and guaranteed returns of as much as 12.5 percent. The Grigg case is the first TARP related fraud case being prosecuted by Neal Barofsky, the special inspector general for TARP - one of some 20 criminal probes he has initiated. Attorneys for Grigg say he will plead guilty to the mail fraud and wire fraud charges.

Read FraudTalk's original post on this story here.

Read the story here, here and here.

Oklahoma Municipal Employee Charged In $435K Embezzlement Case

Robin Dawn Ramming, 34, of Hinton, Oklahoma, has been charged with embezzling some $435,000 from the Hinton Economic Development Authority (HEDA) where she was employed as an accountant. According to reports, Ramming maintained two sets of books to hide her thefts. She allegedly used her position to make cash withdrawals for her own personal benefit.

Read the story here.

Utah Woman Charged With Embezzling More Than $200K

Judy Bird Johnson, 41, has been charged with embezzling more than $200,000 from Domain Systems, of Farmington, Utah, where she had been employed as a bookkeeper. Johnson allegedly used a variety of means to steal from the company, including writing checks to herself and to a company she was a part owner in with her brother. Johnson also allegedly stole funds by manipulating the company payroll and misusing corporate credit cards. When confronted by company officers last October, Johnson reportedly admitted the embezzlement and she was terminated. Losses in this case are "well in excess of $200,000" according to Domain Systems president, Randy Pettit.

Read the story here.

Montana Banker Charged With Embezzling $800K

Leslie Susan Stehr, 45, of Missoula, Montana, has been charged with embezzling nearly $800,000 from the First National Bank of Montana where she had been a longtime employee. Stehr has plead not guilty to the embezzlement and tax evasion charges. Details have not been released.

Read the story here.

Developing...

Prison Sentence For Virginia Bank Embezzler

Lovetta L. Moore, 45, of Chesapeake, Virginia, was sentenced to 28 months in prison for embezzling $264,991.77 from customer accounts at the Lake James branch of Community Bank in Virginia Beach, Virginia. Moore was the Assistant Vice President and Branch Manager at the bank between July 2003 and November 2007 when she issued cashiers checks and made other withdrawals from customer accounts payable to herself and businesses run by her family members. Moore pleaded guilty on January 22, 2009 to bank embezzlement.

Read the story here.

Read the DOJ announcement here.

Sorry Folks - We've Been On Holiday

Sorry folks, but we have been away and have not been keeping up with the postings as we like. Nevertheless, here are some nice embezzlement cases to whet your appetite. We'll try to catch up over the next day or two.

Regards,

Chris

Washington State Bookkeeper Charged With Embezzling More Than $400K

Karin Cruz was charged last week on 103 counts of felony theft for allegedly embezzling more than $400,000 from Cunningham Manufacturing of South Seattle, Washington, where she had been employed as a bookkeeper. According to prosecutors, Cruz used her position to transfer the funds over a five year period to her own accounts. Details have yet to be released.

Read the story here.

Developing...

Update On West Virginia Reinsurance Embezzlement Case: Mills Pleads Guilty To $1.1 Million Theft

Andrea Mills, 49, of Huntington, West Virginia, pleaded guilty today to charges she embezzled $1.1 million in reinsurance premiums from clients. According to prosecutors, Mills was the owner/operator of Allied Benefit Administrators, Inc., a third party administrator, which misappropriated funds clients had paid for re-insurance premiums. She was originally charged with felony embezzlement last month in an Information. The scheme lasted from March 2006 to January 2008, according to prosecutors and cost more than $2 million in losses to the victims. She faces up to five years in prison plus fines and restitution.

Read FraudTalk's original post on this story here.

Read the story here.

California City Lawmaker Accused Of Embezzling $127,000

Marianne Geer, 60, of Yuba City, California, was arrested and charged Friday with stealing $127,000 over a three year period from the law office of Dave Teja, for whom she worked as a receptionist and office manager. Geer is also alleged to have embezzled from Teja's daughter, Tombi Page, who operates a real estate business in the area. Geer previously served on the Colusa City Council for seven years before losing an election in 1997. Details on the alleged embezzlements have not been released.

Read the story here and here.

Update (7/20/10): Geer was sentenced to one day in jail and five years probation for her embezzlement of $127,390 from the law office of Dave Teja where she had been employed. Read the updated story here.

Maryland Mother & Daughter Indicted On Embezzlement Charges

Barbara A. Stevenson-Jones, 70, and her daughter, Pamela A. Stevenson, 51, both of Bowie, Maryland, have been indicted on Friday for embezzling more than $280,000 from the District of Columbia by pocketing funds intended for the Randolph-Sheppard Vending Facilities Program, designed for blind vendors, which they were contracted to manage. They were each charged with four counts of theft and carrying stolen goods across state lines. Prosecutors claim that their management company, Wellness and Management, collected vending revenue and was supposed to distribute the money to the 46 blind vendors in the program and each of their retirement accounts, but instead pocketed nearly $300,000. The fraud reportedly occurred between November 2003 and July 2004.

Read the story here and here.

Taking advantage of the blind... How low can you get?

Washington State Bookkeeper Charged With $500+K Theft

Susan R. Arrington, 55, of Marysville, Washington, was charged Friday with first-degree theft in the alleged embezzlement of $531,363 from VisualGraphics Inc., where she had been employed as a bookkeeper. Arrington had been hired over 20 years ago by Don and Janice Whitson who had started the business back in the 1970s. According to prosecutors, since 2002, Arrington wrote some 340 checks that she forged and deposited into her own accounts. However, it is believed that Arrington's embezzlement started long before 2002. The thefts have ruined the family business and put on hold the owner's plans to retire, according to reports. The Whitson's have filed a civil action against Arrington to recover some of the funds.

Read the story here, here and here.

Massachusetts City Employee Accused Of Embezzling More Than $1/2 Million

Gia Maria DeSantis Cox, 27, of Georgetown, Massachusetts, was charged Thursday with one count of larceny over $250 and one count of conspiracy to commit larceny in connection with the alleged embezzlement of more than $518,000 from the City of Malden, Mass, where she worked in the treasurer's office. According to prosecutors, DeSantis handled refund checks for taxpayers who overpaid their taxes to the city. She would issue refunds to various co-conspirators who would then cash the checks. Cox was arrested last November along with Alan Vincent Valdes, 32 of Malden, who was one of the recipients of the fraudulent refunds. Eight others received checks from Cox, according to prosecutors, including, Andre L. Rogers, 27, of Malden; Susan DaRosa, 33, of Malden; Nicole Mungo Connearney, 28, of Everett; Richard Connearney, 26, of Everett; Patrice D. Orne, 29, of Malden; Christopher W. Daveiga, 27, of Malden; Kerri Johnson, 31, of Somerville; and Steven Foster, 31, of Somerville.

Read the story here, here and here.

Update (3/4/10): DeSantis pleaded guilty to charges of larceny and conspiracy to commit larcenyand was sentenced on March 3, 2010 to 2 years in prison. She was also ordered to pay 468,000 in restitution.

Read the updated story here.

Florida Woman Pleads Guilty In $1 Million Church Embezzlement Case

Karen Raborn, 51, of Altamonte Springs, Florida, pleaded no contest to charges she embezzled nearly $1 million from St. Mary Magdalen Catholic Church where she worked as a bookkeeper. In return for her plea agreement, Raborn was sentenced to six years in prison, plus restitution. According to prosecutors, Raborn admitted that she stole from $500 to $1,000 each week from the church's regular collections. She also reportedly stole from the proceeds of a recent church community festival. Raborn as the church bookkeeper from 1995 to the end of 2006 when she handled the funds for the church festival and $19,000 came up missing. After the thefts came to light, Raborn attempted suicide and left a note for her two daughters and husband that stated, in part, "Mommy has made some terrible mistakes, and I have sinned in many ways...I have been to confession and know that God has forgiven me and hope you and the girls can forgive me someday also." Raborn was originally charged in November 2007 with "organized fraud" and grand theft.

Read the story here and here.

Michigan Accountant Charged With Embezzling More Than $100K

Wesley Charles VandeStreek, 52, of Kalamazoo, Michigan, was arrested and charged last week with five counts of embezzlement of more than $100,000 from at least two unnamed victims who were clients of his at VandeStreek & Associates. Details have not been released at this time.

Read the story here .

Developing...

Connecticut Bookkeeper Pleads Guilty To Embezzling More Than $250K From Towing Company

Susan E. Rudisill, 44, of Greenwich, Connecticut, pleaded guilty last week to embezzling $252,553 from Bill's Service Station over a three and a half year period. According to prosecutors, beginning in January 2003, Rudisill wrote checks to herself and altered payroll checks to give herself more income, until July 2006 when a bank teller noticed the discrepancy. Rudisill pleaded guilty to first-degree larceny and will receive a 5 year prison sentence.

Read the story here.

Update On Texas Bank Embezzlement Case: Haynie Sentenced To 1 Year For $515K Embezzlement

Pamela Ruth Haynie, 54, of Lampasas, Texas, was sentenced last week to one year and a day for embezzling some $515,000 from the First Texas Bank, where she had been employed as a cashier. Haynie was also ordered to pay 483,428.79 in restitution. Haynie had been an employee of the bank in various capacities and its affiliates for 18 years, most recently as an "assistant cashier." According to prosecutors, Haynie's thefts, which involved a series of fund transfers into accounts of her own and her relatives, spanned more than a 10 year period from January 1998 to July 2008. She plead guilty last February.

Read FraudTalk's original post on this story here.

Read the story here.

Frankly, Haynie is getting off easy here, my friends...

Texas Bookkeeper Convicted Of Embezzling $264K

Laurie Almeda Vater, 39, of Atascocita Forest, Texas, was convicted April 16th of felony theft related to her embezzlement of some $264,000 from B&C Fasteners, of Channelview, Texas, where she had been employed as a bookkeeper. According to prosecutors, Vater's thefts occurred over a three year period between July 2004 and March 2007. Vater reportedly wrote unauthorized checks to herself, forged the company owner’s signature and altered the ledger entries to show the money was paid to regular vendors. Vater was sentenced to 8 years in prison by Judge Jeanine Barr and ordered to pay restitution.

Read the story here.

Texas Accountant Sentenced To Nearly 5 Years For $215K Embezzlement

Dina Clarise Smith, 39, of Midland, Texas, was sentenced last week to 57 months in prison plus restitution for embezzling $214,855 from Midland Pathologists for whom she had served as an outside accountant. Smith, who was charged with embezzlement, bank fraud, and identity theft, reportedly spent the stolen funds on personal and luxury items such as home furnishings, big screen TVs, car payments, computers, video game systems, vacations and cosmetic procedures. According to prosecutors, Smith was able to use her position to write fraudulent checks to herself from the business, forged signatures and deposited them into her personal accounts. Smith, who was fired from the Elms, Faris & Company accounting firm when her actions were uncovered, pleaded guilty last January 20th.

Read the story here, here and here.

Read the DOJ announcement about her guilty plea here.

Minnesota Attorney Accused Of Stealing From Law Firm He Co-Founded

Thomas Allen Rothstein, 44, of Hennepin County, Minnesota and a founding partner of the Halberg Criminal Defense law firm in Bloomington, Minnesota, was accused April 15th of embezzling $124,258 from the firm. According to the criminal complaint, which charges him with 10 counts of "felony theft by swindle," Rothstein was in charge of the law firm's finances and controlled its financial software, enabling him to conceal his alleged thefts. He allegedly misused company credit cards, issued checks to himself, took client "refunds" for himself and paid for personal items with firm funds. According to the complaint, Rothstein admitted when confronted that he had stolen only $27,500 and that he needed the money to pay for defense costs in a case involving another prior employer from which he is alleged to have embezzled. The complaint alleges that the thefts occurred between February 2005 and September 2007.

Read the story here, here and here.

Accountant For California Non-Profit Sentenced To 14 Years For Stealing $941K

Medelia Chiong Fernan, 50, of Fountain Valley, California, was sentenced last Thursday to 14 years in prison for embezzling some $941,000 from Community SeniorServ, a non-profit that provides senior services, including "meals on wheels," where she had been employed as finance director. Fernan pleaded guilty to 17 counts of grand theft by embezzlement, admitting she issued some 242 checks to herself in order to pay off personal credit card debts and other personal items. The thefts occurred over a four year period, between 2004 and 2008, according to prosecutors. Fernan had been arrested last November and was considered a flight risk because she had $20,000 in cash in her purse and had recently sold her home. She had originally faced charges that included falsifying corporate records as well as embezzlement, because Fernan allegedly made it appear the checks she issued were for legitimate vendors of the non-profit.

Read the story here, here and here.

Louisiana Bank Employee Sentenced To 1 Year For Embezzlement

Shannon Freyou, 37, of New Iberia, Louisiana, was sentenced last week to one year in prison with four years suspended, for embezzling more than $100,000 from the IberiaBank where she had been employed. Freyou pleaded guilty to the charges after having been implicated by a co-conspirator, Brandi Peltier , 29, of Lafayette, Louisiana, who pleaded guilty to embezzling some $460,000 from the bank. Peltier is due to be sentenced in June. Freyou has repaid the bank some $73,000, but must make full restitution, according to her sentence. According to investigators, Freyou and Peltier created fraudulent accounts and withdrew funds based upon increased credit limits.

Read the story here and here.

California Bank Manager Charged With Embezzling $650K From International Opera Star Client

Sokvoeun "Cindy" Sou, 27, of Alameda, California, and a manager with the Bank of Alameda, was arrested last Tuesday on charges she embezzled more than $650,000 from the IRA account of Kiri Te Kanawa, an international opera star. Sou allegedly withdrew funds on six occasions from Te Kanawa's account in the form of cashier's checks over the past year and deposited them into accounts she and her family members controlled. She was charged with embezzlement and forgery. An accountant for Te Kanawa did not recognize the signatures and notified the bank, according to reports. The precise loss is reported to be $651,715. Sou reportedly had a baby recently and was having financial difficulties, according to a relative.

Read the story here and here.

Pennsylvania Woman Indicted For Defrauding Social Security Administration

Joyce A. Bowser, 62, of Davidsville, Pennsylvania, was indicted last week for defrauding the Social Security Administration out of $215,132 over a 14 year period. Bowser allegedly received 268 Social Security payments to which she was not entitled between February 3, 1994 and April 3, 2008. She faces up to 20 years in prison if convicted.

Read the story here, here and here.

Wisconsin Woman Sentenced In Church Embezzlement Case

Laura J. Craig, 50, of Oakwood, Wisconsin, was sentenced to 9 months in prison for embezzling at least $113,000 from the Salem United Methodist Church in Fond du Lac, Wisconsin, where she had served as the church's bookkeeper. Craig's thefts occurred between January 2007 and May 2008, according to investigators. Nevertheless, the church claims the theft was actually $138,000. Prosecutors stated that she has paid back some $85,000.

Read the story here.

Update: South Carolina Bank Exec Gets 18 Months For $600+K Embezzlement

Donna B. Beardsley, 46, of Greenwood, South Carolina, and the former bank manager at Carolina First Bank, was sentenced to 18 months in prison for embezzling more than $612,000 from the financial institution. She had pleaded guilty last December to stealing the money between April 2007 and July 2008, and that she used the funds to purchase land, make home improvements and pay off credit card debts. She has reportedly repaid about $210,000, but must make a full restitution as ordered by the judge.

Read FraudTalk's original post on this story here.

Read the story here and here.

North Carolina Bookkeeper Arrested For Embezzling Nearly $150K From Retailer

Amanda Hanes Womble, 36, of Winston-Salem, North Carolina, was arrested last week for embezzling $147,822 from the Fresh Market Company's headquarters offices in Greensboro, North Carolina, where she had been employed as an accounts payable supervisor. According to investigators, Womble stole the funds between June 2007 and March 2009. Womble reportedly admitted to the thefts when confronted by investigators. Details of the alleged scheme have not been released.

Read the story here, here and here.

Missouri Couple Sentenced For Embezzling From Utility

Stephen C. Collier, 63, and Sharron K. Collier, 62, both of Rich Hill, Missouri, and who both pleaded guilty last October to embezzling $390,367 from the Missouri Water District No. 4, where they had been employed, were each sentenced today to 30 months in prison followed by 3 years of supervised release. The Collier's scheme lasted for about 8 years, from 1999 to July 2007. The Colliers were also ordered to pay restitution of 375,243.88 in cash and sell or forfeit their 120-acre farm property to help satisfy that restitution. According to prosecutors, the Colliers created a fictitious company called American Expressways, a fraudulent consulting vendor to the utility and made personal charges on their American Express cards, that were then paid for with checks they caused to be issued by the utility with fake invoices from American Expressways. Stephen Collier was on the board of the utility and Sharron Collier served as a clerk.

Read the story here, here and here.

Read the DOJ announcements here .

Former Missouri County Official Sentenced To Prison For Embezzlement

Bonnie Sue Lawson, 68, of St. Joseph, Missouri, was sentenced to three years in prison for embezzling some $119,000 from Buchanan County, for whom she had been employed as a public administrator. Lawson pleaded guilty last September to theft charges and admitted writing checks between 2003 and 2006 to herself that were ostensibly for fees. The monies were stolen from Social Security funds intended for about 120 dependent or disabled clients.

Read the story here, here and here.

Read the DOJ announcement here.

North Carolina Civil Rights Leader Charged In $400K Embezzlement Case

Claude Barnes, 57, of Greensboro, North Carolina and a civil rights leader and former professor, was charged last week with embezzling some $400,000 from the estate of a Greensboro woman. Barnes is charged with embezzlement, identity theft, conspiracy and obtaining property by false pretense, according to authorities. Court documents reveal that Barnes is alleged to have stolen from the estate of Betty Irene Burton, a neighbor of Barnes on Wiley Lewis Road in Greensboro and for whom Barnes was the executor of Burton’s estate. Barnes is also accused of conspiring with Koretta King, a live-in nurse who cared for Burton, and Andrea Lee Barksdale a neighbor who is alleged to have gained control of Burton's trust fund and Alex Habersham.

Read the story here and here.

Update: Washington State Man Sentenced To 10 Years For $2.5 Million Mill Embezzlement

Brett M. Smith, 25, of Puyallup, Washington, was sentenced to 10 years in prison for his involvement in a scheme to embezzle some $2.5 million from the Manke Lumber Co. in Tacoma, Washington. Smith had plead guilty to fraud and false documentation charges in January. Smith's brother, Bryan M. Smith, 28, also of Puyallup, was sentenced to 54 months and was originally indicted in the conspiracy along with him in June, which involved paying his co-conspirators for logs that were never delivered to the mill. Smith was responsible for weighing and counting logs coming into the mill and sending checks to the suppliers. Others indicted in the case include Elaine H. Turner, 28; Jeffrey S. Ogburn, 24; Jennifer L. Carino, 25; Robert M. Lester, 28; Robert E. Daniels, 27; and Zedrick M. Carter, 30.

Read FraudTalk's original post on this story here.

Read the story here.

California Man Indicted For Embezzling $700K From Catholic Charity

Thom V. Randle, 68, of Chico, California, was indicted last week on charges he embezzled nearly $700,000 from the Columbian Retirement Home, a nonprofit retirement facility operated by the Knights of Columbus. Randle reportedly sat on the charity's board of directors and served as its vice president of finance. He has been indicted on multiple counts of mail fraud, computer fraud and money laundering charges. According to prosecutors, Randle opening bank accounts and used a computer to unlawfully transfer some $693,000 from the charity to accounts he controlled. The thefts occurred between 2004 and 2005, according to prosecutors. Randle operates his own estate and financial planning business called Randle & Associates, LLC. He faces a minimum of 20 years in prison if convicted on all counts.

Read the story here, here and here.

Read the DOJ's announcement here.

Update (5/15/10): Randle, now 69, pleaded guilty Friday to one count of money laundering and one count of computer fraud in connection with the embezzlement of nearly $700,000 from the Colombian Retirement Home, a Catholic Charity run by the Knights of Columbus where he had served as vice president of finance.

Veritable Arsenal Found At Alleged Arizona Embezzler's Home

Hoang Tan Duong, 35, of Glendale, Arizona, was arrested last Thursday on charges he embezzled more than $1 million from Razmatazz, a furniture company for whom he had been employed as a bookkeeper over a four year period. According to Phoenix police, who executed a search warrant, a veritable arsenal was found at Duong's home, including more than 50 semi-automatic rifles, hand guns and assault rifles spread out among each room in the house. The weapons were valued at more than $100,000. Duong is accused of using his credit card to go on a spending spree and having the company pay the bills as if it were corporate expenses via a company account. Duong reportedly purchased cars, an ATV, motorcycles and scooters with some of the funds. Police also found about $80,000 worth of electronics, jewelry and furniture at his home. Duong's wife, Bich Van Doan, 35, was charged with one count of child abuse because their 2 year old was openly exposed to the weapons. Duong was charged with six counts of fraud and one count of child abuse.

Read the story here, here and here.

Watch the video here.

Another Home Depot Executive Sentenced In Bribery Scheme

James P. Robinson, 43, now of Carolina Beach, N.C., was sentenced to 63 months in prison for accepting bribes from foreign suppliers. Robinson, who had been employed as a divisional merchandising manager in charge of Home Depot's hard-flooring products, pleaded guilty last summer to two counts of tax evasion and one count of conspiracy to commit wire fraud in connection with the kickback scheme. Robinson was ordered to pay $1.1 million in restitution and forfeit to residential properties in Gallatini, Tennessee and two vehicles with a total combined value of about $355,000. Two other Home Depot executives have plead guilty to bribery charges in recent months, including Ronald K. Johnston, 37, of Atlanta, Georgia, and Anthony M. Tesvich, 43 also of Smyrna, Georgia.

Read FraudTalk's earlier post on the Home Depot bribery scandal here.

Read the story here.

Read the criminal information here.

Delaware Car Dealer Employee Charged With $500K Embezzlement

Jennifer A. Creamer, 43, of Newark, Delaware, was charged with stealing more than $500,000 from the Sheridan Ford dealership near Wilmington, with whom she had a business relationship. Creamer, allegedly stole the funds over an 8 year period by through her payroll company, GSC Services Inc., which handled Sheridan Ford's payroll, by siphoning off funds from employee accounts. She is currently out on bond.

Read the story here, here and here.

Watch the video here.

Update On $2 Million Michigan Couple Embezzlement Case: Both Are Sentenced

Amy Lynn McDonald, 37 and Erick Donald McDonald, 39, of Waterford Township, Michigan, who each pleaded no contest to embezzlement charges, were sentenced yesterday. The were accused of stealing some $1.8 million from the Palace Sports & Entertainment Inc., of Auburn Hills. Amy McDonald was a longtime accounts payable manager for the business and the couple reportedly used company credit cards to charge all kinds of personal expenses, including luxury travel, electronics, vehicles, among other things. She was sentenced to 45 months to 20 years and he was sentenced to 10 to 30 years in prison. Erick McDonald got a longer sentence because of his prior felony criminal conviction in the 1990s for armed robbery. He was also charged with a possession of a firearm violation.

Read FraudTalk's earlier posts on this story here and here.

Read the story here and here.

Update On Oklahoma Bank Embezzlement Case: Defendant Sentenced To 15 Months

Linda R. Remington, 48, of Enid, Oklahoma, was sentenced yesterday to 15 months in prison for embezzling some $120,000 from the Central National Bank where she had been employed. Remington pleaded guilty last December to the charges. She was also ordered to pay restitution in the amount of $118,000.

Read FraudTalk's original post on this story here.

Read the story here.

California State Bar Employee Charged With Embezzling $675K

Sharon Elyce Pearl, 51, of Oakland, California, was charged with embezzling more than $675,000 from the State Bar of California, where she had been employed. The alleged thefts occurred over an 8 year period, according to prosecutors. Pearl allegedly spent the money on “spa treatments, designer clothes, lavish meals and fancy hotel rooms," according to the complaint. She surrendered to authorities on Monday. Pearl was responsible in part, for collected rent payments from tenants in a San Francisco office building owned by the law profession licensing agency. According to the complaint, Pearl had tenants make out rent checks to "PLOT - the State Bar of California." She would then deposit the checks into the account of the Piedmont Light Opera Theatre, for which she served as administrator and had control over the accounts.

Read the story here, here and here.

Montana Woman Charged In $115K Embezzlement Case

Diane Corrick, of Bozeman, Montana, plead not guilty to charges she embezzled some $115,000 from her former employer, Radiant Engineering, an area heating & plumbing equipment company. Corrick is accused of felony theft by embezzlement for allegedly stealing $115,357 from the company between March 2004 and November 2008, according to the complaint. Details have not yet emerged as to how Corrick's alleged scheme was perpetrated.

Developing...

Read the story here and here.

Update: Former Manager Of California Car Dealership Sentenced To 4 Years For Embezzling $835K

Cesar Emilio Caceres, 36, of San Ramon, California, was sentenced to four years in prison after pleading no contest last Thursday to charges he embezzled $835,000 from Putnam Lexus in Redwood City, California where he had been employed as a manager. Caceres admitted that he wrote checks to himself over an 8 month period to fund a gambling habit.

Read FraudTalk's original post on this story here.

Read the story here.

Update: Former Michigan Credit Union Manager Sentenced To Nearly 4 Years For $1.3 Million Embezzlement

Ronald Alan Tran, 45, of Plainwell, Michigan and the former general manager of Plainwell Community Federal Credit Union, was sentenced to 46 months in prison, plus restitution for embezzling some $1.3 million from the financial institution. Tran's scheme involved transferring funds from client accounts into his own accounts during the period from August 2000 to March 2004. He was indicted last October on 10 felony counts of bank fraud, embezzlement and money laundering. Last November, Tran plead guilty.

Read FraudTalk's original post on this story here.

Read the story here and here.

Connecticut Cleaning Company Salesman Accused Of Embezzling Nearly $1 Million

Jonathan Cathcart, 37, of Wethersfield, Connecticut, has been accused of embezzling nearly $1 million from his employer, United Cleaning and Restoration, where he had been employed as a salesman. Cathcart is scheduled for an arraignment hearing tomorrow in the case for the first time since his arrest on March 24th on felony larceny and forgery charges. He is accused of stealing $950,000 from the company, but details are sketchy at this time. Cathcart is free on $100,000 bail.

Developing...

Read the story here.

Former Ohio Credit Union Manager Who Embezzled $100+K Is Scheduled To Be Released

Rhonda J. Campbell, 42, formerly of Lima, Ohio, is scheduled to be released next September from prison after serving her 8 month sentence for embezzling $105,000 from the North Star Federal Credit Union where she had been employed. Campbell, who was employed as operations director of North Star, was convicted of embezzling the funds between Dec. 12, 2005, and Jan. 23, 2008 and must also pay restitution. She is serving her time at the Federal Prison Camp in Alderson, West Virginia, where Martha Stewart also did her time.

Read the story here.

This is a light sentence, IMHO. She has gotten off easy.

North Carolina Attorney Pleads Guilty In $5.2 Million Mortgage Embezzlement Case

Michelle L. Trivette Shepherd, of West Jefferson, North Carolina, a former real estate attorney, has pleaded guilty to defrauding some 275 clients out of $5.2 million. Specifically, Shepherd pleaded guilty to sixteen counts of felony embezzlement and 10 counts of obtaining property by false pretense by not paying off at least 23 mortgages, being involved in a check-kiting scheme and keeping funds paid by clients for title insurance policies without actually purchasing them. Shepherd was indicted last July and has surrendered her law license to the North Carolina Bar, pending an inquiry. She was sentenced to serve as much as 20 years in prison, plus restitution. According to her lawyers, Shepherd has cooperated with the authorities and full restitution will be made.

Read the story here.

Update On Case Of Missouri Municipal Treasurer Accused In $325K Embezzlement Case: Suspect Is Ordered To Stand Trial

Gene Paul Boyd, 62, of Leawood Village, Missouri, was ordered to stand trial today on charges he embezzled at least $325,000 and perhaps as much as $1 million from the Leawood Village coffers, where he had served as treasurer for many years. Boyd was arrested and charged this past February and had reportedly confessed to his former employer that he had been embezzling money from the village for as long as 21 years. According to investigators, Boyd deposited checks from the Leawood Village's account with Community Bank & Trust into an account controlled by Boyd at the U.S. Bank. Boyd also allegedly wrote checks from the Community Bank & Trust account to himself and cashed them.

Read FraudTalk's original post on this story here.

Read the story here.

Update (6/30/11): Boyd, who pleaded guilty just prior to trial this past April to embezzling funds beginning in 1992, from Leawood Village, has turned himself in to face jail time since he has not made adequate restitution.  The losses are now believed to be $376,000, plus another $673,000 which is unaccounted for due to lack of records. 

Update On Columbia University Embezzlement Case: Bzdil Pleads Guilty

John Bzdil III, 34, of Allentown, Pennsylvania, and the former manager of Columbia University's Pediatric Neurosciences Department of the Neurological Institute, pleaded guilty of defrauding the institution out of more than $180,000. Bzdil submitted phony invoices for payment as part of the scheme, according to prosecutors. He also reportedly submitted fraudulent reimbursement requests for items he purchased for his own personal use. Bzdil and his wife, Heather Brooke Rinehart, 28, were both charged last December in connection with the embezzlement. However the charges against her were dropped last month. He faces up to 20 years in prison, plus restitution and will be sentenced, June 25th.

Read FraudTalk's original post on this story here.

Read the story here and here.

Read the DOJ announcement here.

New Jersey State Department of Labor Investigator and Accomplice Plead Guilty To Bribery Scheme

Joseph Rivera, 53, of Sicklerville, New Jersey, and a former state Department of Labor investigator, pleaded guilty to accepting bribes in exchange for certifying that some 20 temporary employment agencies were complying with state wage and hour regulations. Rivera accepted $1.86 million in total bribes by charging 25 cents for every hour that each temporary employee worked in those companies between 2002 and 2008. Rivera also pleaded guilty to tax evasion. He faces up to 15 years in prison and must forfeit two vacation homes, vehicles, cash and other assets. Meanwhile, Yohan Wongso, 27, of Philadelphia, Pennsylvania pleaded guilty paying bribes to a second NJ DOL investigator, James Peyton, from 2006 to 2008. Peyton and two other temporary worker agency operators, Channavel Kong and Thuan Nguyen, both 37 and from Philadelphia, have been charged in this case. Prosecutors allege that Kong, operator of Sunrise Labor, paid Rivera almost $50,000 over a 2 year period.

Read the story here, here and here.

Read the DOJ announcement here.

Another California Man Pleads Guilty To Ponzi Scheme; This One $15 Million

John Anthony Miller, 51, of San Clemente, California pleaded guilty last week to defrauding investors out of at least $15 million over an 8 year period. Specifically, Miller plead guilty to mail fraud, bribery, passport fraud and identity fraud. According to prosecutors, Miller operated JAM Jr. Enterprises and Forte Financial Partners, two purported investment firms and offered annual returns of as much as 18 percent in investments including foreign currency trading, oil wells, real estate. Miller was arrested in November 2008 as he was preparing to leave the country in the midst of his companies' collapse. He had paid a 5,000 bribe to obtain the passport of a former high school classmate who had passed away.

Read the story here.

Read the DOJ announcement here.

Read the criminal complaint here.

California Man Pleads Guilty In $14 Million Ponzi Scheme Investment Fraud

Antoine David Haroutunian, 47, of Glendale, California, pleaded guilty last week to defrauding investors out of more than $14 million between June 2005 and August 2008. Haroutunian reportedly offered investors, whom he had identified by taking customer information from Bank of America with whom he had previously been employed, 24 percent returns to entice them. In fact, according to prosecutors, he made almost no investments, instead using victims' money "to line his own pockets and those of his associates, and to fund his business ventures." In a classic Ponzi scheme, Haroutunian used later investor funds to make "interest" payments and make capital disbursements to earlier investors. Last month he plead guilty to the unauthorized utilization of Bank of America's customer data and tax evasion. He faces up to 120 years in prison.

Read the story here and here.

Read the DOJ announcement here.

Florida Bookkeeper Already Charged In $150K Embezzlement Case Now Faces Identity Theft Charge

Audrey Brooks, 43, of Palm Bay, Florida, who is already facing charges for embezzling some $150,000 from Beta Max Hoists, Inc., where she had been employed as a bookkeeper, now faces charges she utilized her former roomate's personal information to obtain a driver's license in Florida. She was arrested on the embezzlement charges February 5th, including 45 counts of grand theft and scheming to defraud, after an internal audit discovered the accounting discrepancies. Brooks reportedly used the personal information from a roommate she had 10 years ago from whom she had stolen her wallet. Brooks admitted to the embezzlement when confronted by police and claimed she took the money to support her three children, according to police. She reportedly created a false identify and used it to siphon money from the company by cashing checks made out to the false individual. The scheme lasted until she got laid off last October.

Read the story here , here and here.

Update On Texas Credit Union Embezzlment Case: McGee Sentenced To Neary 6 Years

Joanna Lynn McGee, 40, of Wichita Falls, Texas was sentenced to 71 months in prison for embezzling more than $2 million from her former employer, Texdot Wichita Falls Credit Union. McGee, who had plead guilty to embezzlement charges last November, was also ordered to pay restitution in the amount of $2.63 million. According to prosecutors, McGee set up 129 fictitious loans from which she drew down funds into her own accounts and for her own personal use. The scheme lasted 7 years, according to reports. The credit union is now defunct.

Read FraudTalk's earlier post on this story here.

Read the story here, here and here.

Rod Blagojevich Indicted

Former Illinois Gov. Rod R. Blagojevich, (D-IL), 52, of Chicago, Illinois along with five close associates including his brother, was indicted by a grand jury yesterday in a superseding indictment on 16 felony counts, including racketeering conspiracy, wire fraud, extortion conspiracy, attempted extortion and making false statements to federal agents. The charges arise from allegations Blagojevich used his position as governor to offer for sale the senate seat vacated by President Obama. Associates of Blagojevich also indicted include:

• John Harris, 47, of Chicago, Illinois. Blagojevich’s former chief of staff was charged with one count of wire fraud;
• Alonzo Monk, 50, of Park Ridge, Illinois. A Blagojevich consultant, former chief of staff, campaign manager and former general counsel, now a lobbyist doing business as AM3 Consulting, Ltd.
• Robert Blagojevich, 53, of Nashville, Tennessee. Blagojevich's brother and former chairman of his campaign fund.
• Christopher Kelly, 50, of Burr Ridge, Illinois. A key Blagojevich fundraiser.
• William F. Cellini, Sr., 74, of Springfield, Illinois. Another key Blagojevich fundraiser and businessman

New allegations in the indictment include:

• Beginning in 2002 and continuing after Blagojevich was first elected governor, Blagojevich and Monk, along with Kelly and previously convicted co-schemer Antoin “Tony” Rezko, agreed that they would use the offices of governor and chief of staff for financial gain, which would be divided among them with the understanding that the money would be distributed after Blagojevich left public office;
• In 2003, Blagojevich, Monk, Kelly, Rezko and other co-schemers implemented this agreement by directing lucrative state business relating to the refinancing of billions of dollars in State of Illinois Pension Obligation Bonds to a company whose lobbyist agreed to provide hundreds of thousands of dollars to Rezko out of the fee the lobbyist would collect, and Rezko in turn agreed to split the money with Blagojevich, Monk and Kelly;
• After it became public that Kelly and Rezko were under investigation and ceased playing a significant role in raising campaign funds, Blagojevich personally continued to trade his actions as governor for personal benefits, including, for example, delaying a state grant to a publicly-supported school while trying to leverage a U.S. Congressman, who supported the school, or the Congressman’s brother, to hold a campaign fundraiser for Blagojevich; and
• In an interview on March 16, 2005, Blagojevich lied to FBI agents when he said that he maintains a separation, or firewall, between politics and state business; and he does not track, or want to know, who contributes to him or how much they are contributing to him.

Read FraudTalk's earlier posts on this story here and here.

Read the superseding indictment here.

Read the DOJ announcement here.

Update On Ted Stevens Case: Justice Department Drops Case

The Justice Department moved Wednesday to dismiss the case against former Alaska Sen. Ted Stevens (R-Alaska) for which he was convicted on corruption charges citing prosecutorial misconduct. The star witness had contradicted themselves in an earlier interview with prosecutors on April 15, 2008 that was not produced to the defense as is required. Statements in the interview sharply contradicted testimony provided at trial. Attorney General Eric Holder is quoted in a written statement, "After careful review, I have concluded that certain information should have been provided to the defense for use at trial. In light of this conclusion, and in consideration of the totality of the circumstances of this particular case, I have determined that it is in the interest of justice to dismiss the indictment and not proceed with a new trial." Stevens had been found guilty in October of concealing some $250,000 in gifts on disclosure forms.

Read FraudTalk's earlier post on this story here.

Read the story here, here and here.

Question: was this a case of political lynching right before an election or was there some real corruption here. If the former, what government department does Senator Stevens go to get his reputation back?

Former Illinois Library Official Charged In $135K Embezzlement

Susan Diane Quirk, 58, of Posen, Illinois, was indicted on charges she embezzled more than $135,000 from the Posen Public Library District, in Cook County, Illinois, where she had served as president. Quirk allegedly began writing checks to herself beginning in 2001 up until resignation last August, according to the complaint. She had been employed by the library since 1987. When confronted with discrepancies brought forward by the Midlothian Public Library, which operates the library, Quirk reportedly admitted to the thefts saying that she did it to fund a gambling addiction at riverboat casinos. She has plead not guilty and is being held in lieu of a $20,000 bond.

Read the story here, here and here.

Convicted Embezzler In California Now Charged With Bigamy

Craig C. Stevens, 49, formerly of Rancho Santa Margarita, California, who is currently in jail on embezzlement charges, has now been charged with bigamy. Stevens is alleged to have married two women at the same time and stealing money from both of them. In October 2008, Stevens was serving an unrelated 3 year, 4 month sentence for stalking when he plead guilty to embezzling $150,000 from Balle de Match, a tennis apparel company he worked for. He then convinced one wife to use her property inheritance to pay the restitution while convincing the other wife to fork over $47,000. He could get another 11 years added to his sentence.

Read the story here, here and here.

Former Virginia Fire Chief Sentenced For $200+K Embezzlement

Thomas Brothers was sentenced to serve up to six months in prison for failing to pay $223,429 in restitution after pleading guilty to embezzling the funds from the Lower Currituck Volunteer Fire Department where he had served as fire chief. Brothers was out on probation, pending his repayment of the restitution. Probation was revoked earlier this month when he failed to do so. He had plead guilty to the charges in 2005, admitting he stole the funds over a four year period.

Read the story here.

Madoff Feeder Fund Charged In Massachusetts

Massachusetts authorities filed a complaint today against Fairfield Greenwich Group, a New York hedge fund, seeking restitution for those investors who lost money in the Bernard L. Madoff Investment Securities LLC Ponzi scheme fraud. Fairfield Greenwhich reportedly invested nearly half of its $14 billion portfolio with Madoff and reaped handsome fees in the process. A Connecticut judge ordered the firm's assets frozen just two days earlier in a case that was brought by the Town of Fairfield, Connecticut, seeking restitution for the $42 million in pension funds it had invested with the firm that was handled by Madoff.

Meahwhile, US Marshalls siezed Madoff's nearly $10 million home in Palm Beach, Florida along with two of his luxury boats.

Read the story here.

Read the complaint here in 2 parts, plus exhibits.

Update On New Hampshire Investment Fraud Scheme: Co-Conspirator Pleads Guilty To Failing To Report Fraud

Lisa Elliott, 45, of Epsom, New Hampshire, and the former chief operating officer of Manchester-based Noble Trust Company, pleaded guilty Today to charges she knew about the fraud scheme at the company and failed to report it. Colin Lindsey, 41 and the owner of Noble Trust was charged earlier this month with operating a Ponzi-type investment fraud scheme that bilked some 300 investors out of at least $15 million.

Read FraudTalk's original post on this story here.

Read the story here.

Missouri Woman Indicted For Scheme To Embezzle $750K

Mary Elizabeth Hurtt, 57, of West Plains, Missouri, was indicted today on federal charges she schemed to embezzle some $750,000 from White Electrical Services, Inc., where she had been employed as a bookkeeper for 8 years. Hurtt allegedly forged signatures and deposited checks into her own accounts that were meant as payments to the company. She has been charged with two counts of bank fraud and five counts of forging securities. Prosecutors alleged that Hurtt's scheme spanned 6 1/2 years until May 2007. Hurtt was originally hired by White Electrical in 1999.

Read the story here and here.

Watch the video here.

Update (10/18/10): Hurtt, now 58, was sentenced to three years and 10 months in federal prison without parole. She was also ordered to pay $760,504 in restitution.

FBI Highlights Recent Ponzi Schemes It Has Been Investigating

The Federal Bureau of Investigation issued a press release late today outlining the Ponzi scheme fraud investigations it has been involved with that have been in the news since the beginning of 2009, including:

• On 01/05/2009, four Florida defendants were charged in a $1 billion Ponzi investor fraud scheme. Read about it here.
• On 01/23/2009, a Broomall, Pennsylvania man was charged in a large-scale investment fraud that he used as a pyramid, or “Ponzi,” scheme to defraud investors of tens of millions of dollars between 1996 and 2008. Read about it here.
• On 01/26/2009, a Heber Springs, Arkansas man was sentenced to federal prison for defrauding investors of $43 million in a Ponzi scheme. Read about it here.
• On 01/26/2009, a North Haven, Connecticut man was sentenced to 48 months of in prison, followed by three years of supervised release, for operating a multi-million dollar Ponzi scheme in which he solicited investments for fictitious investment programs. Read about it here.
• On 01/27/2009, the President of a Long Island, New York investment firm was charged in a $370 million Ponzi scheme. Read about here.
• On 02/05/2009, a grand jury in Seattle, Washington indicted three men for operating a $65 million Ponzi scheme. Read about it here.
• On 02/24/2009, the New York FBI Field Office arrested an individual based on the operation of an international, Internet-based "gold unit" Ponzi scheme. Read about it here.
• On 02/24/2009, a Forest Lake, Minnesota man was sentenced for his role in defrauding 519 people nationwide out of approximately $30 million in a Ponzi scheme operated under the name of the Joshua Tree Group. Read about it here.
• On 02/27/2009, a former Brentwood, Tennessee financial advisor and owner of Park Capital Management Group (“PCMG”) admitted to operating an elaborate Ponzi scheme to defraud investors who deposited funds with PCMG for investment in brokered stocks and other marketable securities. Read about it here.
• On 02/27/2009, a Chicago businessman was charged with luring two dozen investors into investing $4.7 million in commodity trading pools and using the money instead to fund two nightclubs, to pay gambling debts and other living expenses, and to make Ponzi-type payments to earlier investors. Read about it here.
• On 03/04/2009, two Arizonans and two others were indicted for a Ponzi fraud scheme. A 90-count indictment alleges at least 300 victims invested $8 million during the scheme. Read about it here.
• On 03/09/2009, a Marblehead, Massachusetts investment advisor was charged with wire fraud in connection with a Ponzi scheme to defraud two of his clients of more than $750,000. Read about it here.
• On 03/12/2009, Bernard L. Madoff pled guilty to an 11-count criminal information and was remanded into custody related to a massive multi-billion dollar Ponzi scheme. Read about it here.
• On 03/12/2009, Dennis R. Bolze was arrested in State College, Pennsylvania on federal wire fraud and money laundering charges associated with a Ponzi scheme. Read about it here.
• On 03/18/2009, an Atlanta, Georgia currency trader was charged with operating a $25 million Ponzi scheme. Read about it here.
• On 03/20/2009, Anthony Vassallo of Folsom, California was charged for his role in a massive Ponzi investment fraud scheme that brought in more that $40 million from 150 investors, many of whom he met in his church. Read about it here.
• On 03/31/2009, Manyu Ogale was sentenced to 10 years in prison on a federal charge of mail fraud arising out of a Ponzi scheme under the guise of a foreign currency “hedge fund” that defrauded investors out of more than $23 million. Read about it here.

FraudTalk has chronicled virtually all of these cases in these pages.

Elderly South Carolina Woman Sentenced To 6+ Years For $1 Million Loan Fraud Scheme

Christine McLamb, 72, of Florence, South Carolina, was sentenced to 75 months in prison for embezzling some $1 million from Health Facilities Federal Credit Union where she had been employed as a lending officer. McLamb, whose thefts spanned an eight year period between 1998 and 2006, was also ordered to pay restitution of $1,033,065.65. According to prosecutors, McLamb issued some 90 loans in the names of various credit union customers and kept the proceeds for herself. To cover her tracks, she would create new loans to pay off older ones. McLamb plead guilty last September to aggravated identity theft. She has appealed her sentenced. McLamb reportedly blamed her thefts on desperation due to her husband, James McLamb's poor health conditions.

Read the story here, here and here.