Friday, August 28, 2009

California Municipal Employee Arrested In $1.7 Million Embezzlement Case

Mary Ann Jones, 38, of Dos Palos, California, turned herself in yesterday after an arrest warrant was issued for her charging her with embezzling more than $1.7 million from the City of Los Banos where she had been employed as a utility "billing technician." According to prosecutors, Jones' scheme lasted from March 2005 to April 2009 whereby she allegedly took cash from daily deposits. Jones also allegedly tried to conceal her actions by making deposits with checks from other departments. A forensic audit revealed that more than $1.7 million is missing. Jones reportedly used the funds to purchase real estate, vehicles, luxury items, vacations and other items for her personal use.

Read the story here, here and here.

Update (5/24/13): The City of Los Banos reached an agreement whereby Moss, Levy, Hartzheim, LLP, the accounting firm that missed the fraud, would pay the city $750,000 in restitution.  In 2009, Jones pleaded no contest to six felonies, including five counts of embezzlement and one count of receiving stolen property.

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