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Former New Jersey Accountant Pleads Guilty To Embezzling More Than $1 Million

Daniel Chungyin Chiu, 60, of Rockaway Township, New Jersey, pleaded guilty to charges he embezzled approximately $1 million worth in cash and stock from Jersey City-based Bel Fuse Inc., a telecommunications manufacturing firm where he had been employed as an accountant. According to prosecutors, from December 2001 until his termination on April 21, 2009, Chiu devised numerous ways of improperly transferring tens of thousands of shares of stock to himself, and inflating his contributions to the company’s 401(k) and profit-sharing plans, prompting the company to contribute substantial matching monies and shares of stock to Chiu’s personal 401(k) plan. Prosecutors say he has cooperated with the investigation and he pleaded guilty to wire fraud. He faces up to 33 months in prison under the terms of his plea agreement. He is free on $500,000 bond and is due for sentencing February 18, 2010.

Read the story here.

Read the DOJ announcement here.

Update (6/17/10): Chiu, now 61, was sentenced Wednesday to 18 months in prison for embezzling some $1 million in stock from Bel Fuse, Inc.

Colorado Woman Accused Of Embezzling $350+K From Clinic

Stacy Hall, 41, of Greeley, Colorado, has been accused of embezzling more than $350,000 from the Women's Clinic of Greeley, where she had been employed as the clinic manager since 2004. Hall allegedly wrote checks from the clinic to herself, her husband and to a fictitious business and then either cashed or deposited the checks into her own accounts. All told, a total of 559 fraudulent checks were written by Hall, totaling $354,799.34, according to investigators. She has been sued in civil court by the clinic in an effort to recover the stolen funds.

Read the story here and here.

Former Bookkeeper Of Andy Williams Accused Of Embezzling $680K From Entertainer

Dawn Kinney Cleveringa, 54, of Kirbyville, Missouri, has been accused of embezzling more than $680,000 from entertainer Andy Williams' Moon River Theater, with whom she had been employed as a bookkeeper. According to investigators, since 2006, Cleveringa wrote checks to herself and forged signatures from company accounts. Cleveringa, who had been employed by Williams for some 14 years, has been charged with one count of stealing and one count of forgery. She was fired last April when bookkeeping discrepancies came to light.

Read the story here and here.

Update: Former Texas Bank Exec Sentenced In $260K Embezzlement Case

Tracy Eugene Culp, 45, of Texarkana, Texas, was sentenced to 19 months in prison for embezzling $260,381.89 from Cass County Bank in Queen City, Texas, where he had been employed as a vice president and branch manager. Culp, who pleaded guilty to the charges last June, admitted he stole the money over a two year period between October 2005 and June 2007. According to prosecutors, Culp's scheme involved creating fraudulent loans and funnelling the money into his own personal accounts. Culp was also ordered to pay full restitution.

Read FraudTalk's original post on this story here.

Read the story here.

Arizona Office Manager Accused In $250K Embezzlement Case

Cathryn Jane Davis of Kingman, Arizona is accused of embezzling approximately $250,000 from city councilman Kerry Deering's rehabilitation center where she worked as office manager and bookkeeper. Davis was arrested November 11th and faces charges of fraudulent schemes and artifices, forgery and felony theft. Davis had been employed by Deering for 3 1/2 years. The case is ongoing.

Read the story here and here.

Minnesota Banker Pleads Guilty In $640K Embezzlement Case

Gregory Gerard Meyer, 39, of Wayzata, Minnesota has pleaded guilty to embezzling $639,820 from Norwood Young America, a community bank chain, where he had been employed as an investment manager. According to prosecutors, Meyer stole the funds from client accounts between March 2006 and October 2008 and transferred the funds into his own accounts for his own personal use. Meyer faces up to 30 years in prison upon sentencing.

Read the story here.

Update (9/2/10): Meyer, now 40, was sentenced to more than 2 years in prison in this case. He pleaded guilty last November.

South Carolina Men, Known As The "3 Hebrew Boys" Found Guilty In $82 Million Ponzi Scheme

Joseph Brunson, Tim McQueen and Tony Pough, of South Carolina, who operated variously as the "3 Hewbrew Boys LLC," and Capital Consortium Group, Inc., were convicted by a jury Friday for defrauding investors out of some $82 million in a Ponzi-type investment fraud scheme. Specifically, the jury found each of them guilty on 58 counts of mail fraud, money laundering and transporting stolen goods, after deliberating for 3 hours. According to the criminal complaint, since 2004, the 3 men lured at least 7,000 investors from two dozen states, including many from military bases and churches, with promises to help pay off debt at a fraction of its cost. The investments were purported to be made in foreign currency markets. Instead, the 3 used the investments funds for their own personal purposes, including a $25 million home near Walt Disney World, three Atlanta condos, three luxury stadium boxes in Charlotte and Atlanta, more than 20 cars, eight lots at a Northeast Richland subdivision, 20 acres of Orangeburg County land, a $1 million motor coach, and a $5 million personal jet. Sentencing is pending.

Read the story here, here and here.

Read the original complaint here and the indictment here.

Florida Lawyer Suspected In Largest Ponzi Scheme Since Madoff

Scott W. Rothstein, 47, of Miami, Florida, is suspected of running a Ponzi-type investment fraud scheme that could top $1 billion in losses to investors, making it the largest since the Bernard Madoff case. Since 2005, according to a forfeiture complaint, Rothstein allegedly solicited investors for settlements of sexual harassment and other labor-related lawsuits. Rothstein reportedly offered investors a chance to buy the settlements at a discount in deals that would pay the original plaintiffs a smaller lump sum immediately. The investors would then collect a given settlement's full value over time. One such deal purported to provide annual returns of some 80 percent. However, prosecutors allege that many of the settlements offered by Rothstein never existed, defrauding the investors. The government's forfeiture complaint sought to seize Rothstein's 87-foot yacht, more than a dozen properties, bank accounts, ownership stakes in more than a dozen companies and 20 luxury cars, including a 2009 Bugatti Veyron that sells for $1.5 million, among other things.

Read the story here, here, here and here.

Read the amended civil complaint filed by investors here.

Update (3/11/10): Rothstein was sentenced this week to 50 years in prison for orchestrating a Ponzi-type investment fraud scheme that defrauded investors out of as much as $1.2 billion. Rothstein had pleaded guilty January 27, 2010 to one count of conspiracy to violate the racketeering influenced corrupt organization (RICO) statute; one count of conspiracy to commit money laundering; one count of conspiracy to commit mail fraud and wire fraud; and two counts of wire fraud.

Connecticut Man Accused In Alleged $20 Million Ponzi Scheme

Michael S. Goldberg, 38, formerly of Wethersfield, Connecticut, has been arrested and charged in a federal complaint with operating a $20 million Ponzi-scheme investment fraud. The scheme allegedly bilked more than 100 investors over a 12 year period through his company, Acquisitions Unlimited Group, which promised investors 20 percent quarterly returns on the liquidation of assets from JP Morgan Chase. Rather than make investments as promised, Goldberg allegedly used the money for personal use and never had a relationship with JP Morgan Chase. The investors were from Connecticut, New York, Florida, Arizona, California and Vermont. He has been released on $1 million bond. Investigating authorities have asked for assistance from anyone with information about the case to contact the FBI's Hartford office at (203) 777-6311.

Read the story here, here and here.

Read the DOJ announcement here.

Louisiana Businessman Charged In $20 Million Alleged Ponzi Scheme

Matthew B. Pizzolato, 26, of Tickfaw, Louisiana, has been charged in a 64-count indictment with securities fraud, mail fraud, wire fraud, money laundering, witness tampering and obstruction of justice in connection with an alleged Ponzi-scheme that defrauded investors out of some $19.5 million. About 160 mostly elderly individual investors were defrauded in the scheme, according to prosecutors. According to the criminal complaint, Pizzaloto operated Gulf Region Guaranty, Inc. and numerous related entities by offering certificates of deposit and treasury bills at rates higher than market value and marketed them as "safe," "guaranteed" or "conservative." Instead of investing the funds as advertised, Pizzolato made high-risk futures investments and other risky ventures as well as spent the money on a lavish personal lifestyle and for his own personal use.

Read the story here, here and here.

Update (4/4/10): Pizzolato pleaded guilty Thursday to 27 charges including mail fraud, wire fraud money laundering, securities fraud, and witness tampering.

California Man Pleads Guilty In $25 Million Investment Fraud Scheme

Richard M. Hersch, 72, pleaded guilty last week to defrauding investors at least $9.2 million in an investment Ponzi scheme that attracted over $25 million by promising as much as six percent per week. Hersch's scheme involved his company, All States ATM, Inc., which purported to place ATM machines at horse racing tracks around the country. Hersch was indicted last April on 15 felony counts. This is apparently the same Richard M. Hersch who was convicted in 1995 in a tax preparation fraud case.

Read the story here and here.

Read the DOJ announcement here.

Former South Carolina County Clerk Of Court Accused In $200K Embezzlement Case

S. Bradley "Brad" Morris, 32, of Union County, South Carolina, was charged last week with using his position as County Clerk of the Court to embezzle more than $200,000 from the county's child support fund. Investigators report that the thefts occurred between January and October of this year. Morris has resigned his position as Clerk of the Court. He was elected to that position in November 2004 at the age of 26 and ran again unopposed in 2008. He faces as much as 20 years in prison if convicted on all counts.

Read the story here and here.

Read Morris' resignation letter here.

Former Kansas Executive Sentenced To 6 Months In $335K Embezzlement Case

Michael L. Halfman, 58, of Wichita, Kansas, has been sentenced to 6 months in prison for embezzling $335,532 from the Gessler Drug Company, where he had served as chief executive officer. Halfman had pleaded guilty to one count of embezzlement and one count of making a false statement on a tax return in the case. Prosecutors announced that Halfman admitted to embezzling from cash deductibles on the sale of pharmaceuticals and general merchandise and then attempting to cover up the thefts with checks from the company's health benefit program.

Read the story here, here and here.

Pretty light sentence, if you ask me...

Former Montana School Trustee Accused Of Embezzling $237K

Linda Faye Harris, 50, of Florence, Montana and a former Trustee of the Florence, Montana School Board, has been accused of embezzling some $237,000 from CTA Architects, where she had been employed as a bookkeeper. According prosecutors, Harris forged checks to pay for student loans, personal expenses and personal credit card bills, among other things. In light of the allegations, Harris has resigned her position as school board trustee. She allegedly stole the money over a period of about 7 1/2 years between December 2001 and June 2009.

Read the story here and here.

Update (6/23/10): Harris, now 51, was sentenced to 10 years in prison with 8 years suspended. She was also ordered to pay restitution of $193,000. The amount she embezzled is now believed to be $180,000.

California Man Will Face Prison In $2 Million Embezzlement Scheme

Ryan S. Merman, 69, of Santa Rosa, California will face six years in prison plus restitution after reaching a plea agreement in a case in which he has been charged with embezzling nearly $2 million from STX Inc., where he had been employed as general manager with the responsibility for handling company finances. Merman's thefts allegedly occurred over a 7 year period between 2002 and 2009. He plead guilty last September to the charges that reportedly involved forging checks for his own benefit. According to STX's owner, Dianne Anderson, Merman embezzled between $200,000 and $300,000 from the company every year since he was first employed 12 years ago. Merman reportedly spent much of the stolen money on gambling and a lavish lifestyle. He awaits final sentencing next month.

Read the story here and here.

Rhode Island Woman Charged With Bilking School Lunch Program Out Of $335K

Beverly E. Howard, 53, of Westerly, Rhode Island, has been charged with embezzling $334,778.31 from Chartwells, the company that runs the East Lyme, Connecticut school system's food service program. Howard, who allegedly stole the money to support a gambling habit, was charged with first degree larceny. She had been employed as Chartwells' "Director of Dining." In an affidavit, Howard stated that she took cash out of the cafeteria revenues before making the daily deposits into the school lunch fund and created false deposit logs to cover the differences.

Read the story here, here and here.

Update (4/13/10): Howard pleaded guilty today to one count of first degree larceny charges and faces up to 16 years in prison upon sentencing. She has agreed to pay full restitution as well. Read the updated story here.

Update (6/10/10): Howard was sentenced yesterday to 5 years in state prison with all but 9 months suspended. She was also ordered to pay $100 per month over five years ($6,000) as restitution, to her employer. Read the story here.

Connecticut Woman Charged With Embezzling $226K Had Gambling Problem

Cynthia S. Eddy, 52, of Preston, Connecticut, has been charged with embezzling some $226,000 from the Lakeside Condominium Association where she had been employed as business manager. Eddy reportedly told police investigators that she stole the money in order to feed her gambling habit at local casinos. She had amassed nearly $300,000 in gambling debts, according to reports. Eddy allegedly forged signatures of Association officers on checks which she deposited into her own accounts. She faces charges of first-degree larceny and third-degree forgery. The thefts apparently occurred over a four year period between 2005 and 2009. Eddy is currently seeking treatment for her gambling addiction at Better Choice in Norwich, Connecticut.

Read the story here, here and here.

Update (9/24/10): Eddy was sentenced to six months in prison for embezzling nearly $300,000 from the Lakeside Condo Association where she had been employed for more than 20 years. She was also ordered to pay $298,927 in restitution, was banned from casinos and will also spend five years on probation after her prison term.

Minnesota Woman Charged In $676K Embezzlement Case

Gail Ann Williams, 51, of St. Paul Park, Minnesota, has been charged with embezzling some $676,000 from Stuart Co. of Bloomington, where she had been employed as the company's Executive Vice President of Finance. Williams has been charged with eight felony counts of theft by swindle of more than $35,000. Each carries a possible sentence of 20 years in prison and a $100,000 fine upon conviction. Over at least a five year period from 2004 to 2009, Williams fraudulently transferred funds from company bank accounts into her own accounts by wire transfer. She also served as finance officer for a related company, Nolan Family Limited Partnership. According to the criminal complaint, Williams spent the stolen money on an auto loan and expensive trips, among other things.

Read the story here and here.

Read the criminal complaint here.

California Skateboarding CFO Charged In $365K Embezzlement Case

Matthew Mercuro, 36, of San Clemente, California has been charged with embezzling some $365,000 from teenage professional skateboarder Ryan Sheckler, for whom he had been employed as chief financial officer. He has been charged with two felony counts of grand theft and faces nearly 7 years in prison if convicted on both counts. According to prosecutors, Mercuro transferred funds from Sheckler's companies to personal accounts of his wife and a friend. The thefts apparently occurred between June 2008 and April 2009, when Mercuro worked for Sheckler's companies, Ryan Sheckler Rips LLC and Sheckler Merch 2 LLC. Sheckler had a reality TV show called "Life of Ryan," which was canceled earlier this year.

Read the story here and here.

Update: Former California Law Firm Administrator Sentenced In $1.6 Million Embezzlement Case

Regina M. Schenck, 46, of Herald, California, was sentenced to 41 months in prison for embezzling $1,635,449.90 from the law firm of Diepenbrock Harrison in Sacramento, where she had been employed as an administrator. Schenck pleaded guilty last August to one count of computer fraud and one count of filing a false tax return. Prosecutors had alleged that starting in 1999 Schenck wrote law firm checks to pay her own bills, created false documents and lied to firm partners to get them to authorize checks she secretly used to buy horses and a horse trailer, among many other personal items.

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

Read the story here.

Update: Rhode Island Woman Pleads No Contest In Two Embezzlement Cases Totalling More Than $600K

Louise A. Distefano, 54, of Westerly, Rhode Island, pleaded no contest in two embezzlement cases she has been charged in where she bilked employers out of more than $600,000. She allegedly embezzled nearly $400,000 from Koolco Inc., a heating and air conditioning company where she was employed as a bookkeeper and more than $200,000 from Turning Pointe Therapeutic Riding, a non-profit organization.

Read FraudTalk's original post on this story here.

Read the story here.

Virginia Woman Sentenced In $500K Embezzlement Scheme

Karen L. Parish, 39, of Woodbridge, Virginia, was sentenced to 18 months in prison for embezzling more than $500,000 from the U.S. Patent & Trademark Office where she had been employed as a financial analyst. Parish plead guilty in August to conspiracy to commit wire fraud in connection with the case. According to the criminal complaint, from May 1998 and September 2005, Parish deposited customer monies into her own accounts and accounts of her co-conspirator, Michael H. Reid, disguising them as customer refunds. In all, Parish and Reid allegedly stole $534,338.55 in this manner. She has also been ordered to pay restitution in the amount of $527,478.55. Reid, 50, of Fort Washington, Maryland, pleaded guilty in August in the case and was also sentenced to 18 months in prison.

Read the story here and here.

Read the US Department of Commerce, Office of Inspector General's announcement here.

Update: New Jersey Ponzi Schemer Sentenced To 8 Years In Prison

Jeffrey J. Southard, 44, of Pittsgrove, New Jersey, was sentenced to 8 years in prison for operating an investment fraud scheme that bilked some 14 investors out of about $1.8 million. Southard was also ordered to pay $1.813 million in restitution and serve three years of supervised release upon release from prison. Southard pleaded guilty in June to mail fraud and signing a false tax return. Southard's investment fraud scheme was Ponzi-like, whereby he lured elderly investors in the area with promises of tax-free returns up to 11 percent of fraudulent bonds. According to the original complaint, Southard used investment funds to pay his mortgage, auto payments, private schooling for his five children, luxury vacations, cash withdrawals and numerous other personal expenses. Southard reportedly left American Express Financial Advisors under a cloud and then was hired by GunnAllen Financial in December 2003. He stayed with GunnAllen until July 2008 when he was being investigated by the firm for peddling fraudulent investments.

Read FraudTalk's earlier post on this story here.

Read the story here.

New Hampshire Paper Claims Large Scale Embezzlements "On The Rise"

The Merrimack Valley Eagle Tribune of New Hampshire published an article today outlining what it describes as an increase in large scale embezzlement cases in the state. Read the whole article here. The article cites the following cases recently in the news in and around the state:

• Dawn Appel, North Andover — Charged with taking $38,482 from the North Parish Church. Case remains open.
• Michelle Cote, Londonderry, N.H. — Stole $200,000 from Lambs Construction Corp. bank accounts. She was convicted, and is scheduled to be sentenced in January.
• Cheryl Crawford, Derry, N.H. — Former Derry Citizen of the Year took more than $350,000 from the Derry Economic Development Corp. She was sentenced to one year in prison, and ordered to repay the victims and complete 100 hours of community service.
• Joseph Lydick, Derry, N.H. — North Andover purchasing agent was charged with embezzling $20,800 of the town's money. Case remains open.
• Marie Morey, Lawrence — Charged with taking $6,350 from the probation department at Lawrence District Court. Case remains open.
• Alfred Perry, North Andover — The former chairman of the North Andover School Committee stole $22,361 from clients of his insurance agency. He was sentenced to two years probation and ordered to repay the victims.
• Theresa Roccapriore, Groveland — Charged with stealing $136,000 from Lawrence General Hospital. Case remains open.
  

We would also add the following cases in the news this year from New Hampshire:

• Lisa Fern Grass, 46, formerly of Boscawen, New Hampshire, who pleaded guilty to one count of felony theft in connection with her embezzlement of some $200,000 from the Concord Monitor.
• Rebecca McGuire, 52, of Amherst, New Hampshire, who has been sentenced to to three concurrent 3 1⁄2-to 7-year terms for embezzling $311,500 from the Jasper Valley Swim and Tennis Club where she had been employed as a volunteer treasurer
• Julie Ann Garrow, 44, of Alstead, New Hampshire, who was arrested for allegedly embezzling some $711,000 from a Vermont-based family-run graphics shop where she had been employed as a bookkeeper for 14 years.
• Linda K. Blanchet, 45, of Milford, New Hampshire, who pleaded guilty to embezzling some $200,000 from her employer, Inside Track Cabling, a local family business where she had been employed as a bookkeeper.
• Peggy Kempton, 58, of Hollis, New Hampshire, who has been indicted for allegedly embezzling $1.3 million from the Fruitlands Museum of Harvard, Massachusetts where she had been employed as its chief financial officer.
• Desiree D. McLoughlin, 37, of Gonic, New Hampshire, who has been accused of embezzling some $80,000 from an unnamed law office in Portsmouth, New Hampshire. She reportedly had four prior convictions for theft.
• Linda Sue Bevins, 53, of Goffstown, New Hampshire, who was accused of embezzling $1.6 million from the Crotched Mountain Foundation and is currently headed for trial.
• Kelly Curley, 35, of Nashua, New Hampshire, who pleaded guilty to five counts of embezzlement by a bank employee and one count of identity theft in connection with the theft of more than $200,000 from an unnamed Massachusetts-based credit union.
• Anthony L. Lopez, Jr., 34, of Sandown, New Hampshire, who was sentenced to 30 months in prison, plus restitution for embezzling nearly $500,000 from his former employer, NER Construction Management, Inc. of Wilmington, Massachusetts.
• Raymond H. Douville, aka Raye Ellen Douville, 54, of Bedford, New Hampshire, who pleaded guilty to embezzling more than $100,000 in insurance premium funds entrusted to her agency for her own benefit.

Update: California Sheriff Sergeant's Wife Pleads Not Guilty In $1.6 Million Embezzlement Case

Kimberly Sue Sziraki, 44, of Atwater, California and the wife of Merced County Sheriff Department's Sgt. Steve Sziraki, pleaded not guilty Friday to charges she embezzled as much as $1.6 million from her employer, Central Valley Processing, a nut processing company, where she was employed as a manager. Prosecutors allege that Sziraki took client checks and deposited them into her own accounts over a period of about 2 years between 2006 and 2007. She was arrested this past January and has been charged on 16 embezzlement counts and one count of unlawful use of an access card. Sziraki faces up to 17 years in prison.

Read FraudTalk's original post on this story here.

Read the story here.

Update (6/11/10): Sziraki pleaded no contest to four felony counts of embezzlement and theft today. She is expected to be sentenced five to eight years in prison, as part of the plea agreement.

Former California Software Exec Indicted In $1 Million Embezzlement Case

Ethan Farid Jinian, 49, of San Francisco, California was indicted last week on charges he embezzled more than $1 million from Bricsnet FM America Inc. where he had served as chief executive officer. According to prosecutors, Jinian allegedly misappropriated the funds between November 2006 and September 2008 by directing other Bricsnet employees to issue him checks for cash he claimed was owed to him. Jinian was indicted on 14 counts of wire fraud and faces up to 20 years for each count if convicted, plus fines and restitution.

Read the story here.

Read the DOJ's announcement here.

Read the indictment here.

Update (10/28/11): Jinian, now 51, has been sentenced to 64 months in prison and ordered to pay $1,587,860 in restitution to Bricsnet FM America Inc., where he had served as CEO. 

Former Michigan CFO To Stand Trial In $123K Embezzlement Case

Tracy Litzinger, 45, of Okemos, Michigan and the former chief financial officer of the Michigan Public Health Institute, will face trial on two counts of embezzlement and one count of using a computer to commit embezzlement after waiving her right to a preliminary hearing in the case. Litzinger allegedly committed the embezzlement over a six month period between February and August of 2009 wherein she is accused of stealing at least $123,000 from the non-profit agency. She faces up to 20 years in prison if convicted on all counts.

Read the story here, here and here.

Update: Iowa Political Activist's Spouse Indicted In $5.9 Million Embezzlement Case

Marla Randolph Stevens, 58, of Des Moines, Iowa (pictured here), and the spouse of Phyllis Stevens, accused of embezzling some $5.9 million from Aviva USA, has been charged by a federal grand jury with one count of conspiring to commit money laundering and three counts of participating in financial transactions with money derived from criminal activity. Phyllis Stevens is still in custody on 18 felony counts related to the alleged embezzlement. Phyllis Stevens was a 35 year veteran employee of Aviva and is a well known political activist for same sex marriage and gay rights. The two have given tens of thousands of dollars in donations to Democrat candidates, PACs and causes, including Barack Obama. The two were reportedly married in Canada in 2005.

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

Read the story here.

Update (6/23/10): Phyllis Stevens has been declared competent to stand trial for her part in the embezzlement scheme that defrauded nearly $6 million from West DeMoines-based insurer, Aviva USA.

Update (8/2/10): According to reports, Phyllis Stevens plans an insanity defense for her involvement in this embezzlement scheme.

Convicted Felon From Michigan Charged With Embezzling $750K From Municipality

Adam John Korejsza, 45, of Detroit, Michigan, has been charged with misappropriating some $750,000 from the city of Rouge River, Michigan, with whom he had a contract to manage the city's prescription drug program. Korejsza reportedly has prior felony convictions in 2005 for embezzlement and failure to pay child support. In the current case involving Rouge River, Korejsza, who is the owner of owner of Manhattan Group Services, allegedly misappropriated more than $50,000 per month between January 2007 and September 2008 from insurance monies intended to pay for prescription drug coverage for city workers. He has been charged with one count of racketeering and three counts of embezzlement of more than $100,000, five counts of embezzlement over $50,000 and two counts of tax evasion.

Read the story here.

Read the State of Michigan disciplinary action here.

Former Accountant For New Hampshire Newspaper Pleads Guilty To Embezzling $200K

Lisa Fern Grass, 46, formerly of Boscawen, New Hampshire, but now of Lambert Lake, Maine, pleaded guilty to one count of felony theft in connection with her embezzlement of some $200,000 from the Concord Monitor newspaper where she had been employed as an accountant. Grass admitted that she began stealing from the newspaper in 1999 shortly after she was hired by writing checks disguised as legitimate vendor expenses and depositing the proceeds for her own benefit. The scheme lasted approximately 5 years until 2004 when it was discovered and she was fired. Grass was subsequently indicted in November 2007. She faces up to 15 years in prison.

Read the story here, here, here and here.

Virginia Ponzi Schemer Sentenced To 7 1/2 Years

John Mark Donnelly, 53, of Crozet, Virginia, was sentenced to 90 months in prison for operating a Ponzi scheme that bilked some 30 investors out of at least $5 million, according to authorities. Donnelly had previously plead guilty to wire fraud, securities fraud and other fraud charges in May in connection with the case wherein he peddled a complex stock and futures trading program and sent false statements to investors. The scheme promised returns of 22 percent or more. He was originally arrested last March.

Read the story here, here and here.

California Man Arrested In $380K Embezzlement Case

Jorge Jensen Baraibar, 46, of Benicia, California, was arrested last week on charges he embezzled at least $380,000 from Bobac C.F.S. Corp. in Alameda, California, where he had been employed. According to prosecutors, Baraibar deposited hundreds of checks from clients of Bobac into two accounts he set up for himself at Wells Fargo Bank and and Mission National Bank. He has been charged with 182 counts of grand theft. Investigators reported that Baraibar deposited nearly 1,000 checks into his accounts over a period of about 18 months, starting in January 2007. He was fired last August when the discrepancy was discovered.

Read the story here.

Indiana Woman Sentenced In Second Embezzlement Case

Christina L. Robbins, 37, of South Bend, Indiana, was sentenced to 5 years in prison for embezzling more than $291,000 from Abtrex Industries Inc., where she had been employed. Meanwhile, Robbins was reportedly cooperating with authorities in a previous case where she was accused of embezzling from Drywall Service and Supply Inc. in nearby Mishawaka. Robbins was hired by Abtrex in September 2006 prior to her embezzlement indictment in the Drywall Service case. In the Abtrex case, Robbins admitted to paying personal creditors, including her mortgage and credit card bills, with checks she wrote from Abtrex's accounts. In the earlier case, Robbins pleaded guilty in November 2007 to embezzling more than $226,000 from 2002 to 2006. She was sentenced to one year in prison for this scheme and began serving it last February. Her five year term will commence immediately thereafter.

Read the story here.

Maryland Woman Pleads Guilty To Embezzling $237K From Health Benefit Company

Nicole Stepney Turner, 34, of Baltimore, Maryland, pleaded guilty today to charges she embezzled $237,638.54 from CareFirst, a health benefit provider affiliated with Blue Cross Blue Shield Association, for whom she had been employed as a billing and enrollment technician. Prosecutors alleged that Turner caused 84 checks to be issued from CareFirst to 10 conspirators, including her husband, Melvin Turner, 36, who has also been charged in this case, but remains at large. The conspirators then cashed the checks and kicked back most of the proceeds to the Turners, according to prosecutors. Four other co-conspirators have pleaded guilty in the case. Nicole Turner faces up to 10 years in prison, plus restitution and fines.

Read the story here and here.

Read the DOJ announcement here.

Update (3/5/10): Stepney Turner was sentenced to 2 years in prison plus 2 years of supervised release for her role in the embezzlement of nearly a quarter of a million dollars from CareFirst, where she had been employed in the billing department. Five co-conspirators have also pleaded guilty to their roles in the scheme and been sentenced and Melvin Turner is in federal custody awaiting trial. Three other conspirators in the scheme have been charged, but remain fugitives.

Update (3/25/10): Melvin Turner pleaded guilty yesterday to embezzlement from a health care benefit program.

Michigan Woman To Be Tried For Embezzling More Than $100K From Auto Dealership

Rhonda C. Cron, 42, of Frankenmuth, Michigan, waived her preliminary hearing and is set to be tried for allegedly embezzling more than $100,000 from Mike Young Pontiac-GMC auto dealership where she had been employed as an administrator in the dealership's body shop. According to prosecutors, Cron deposited insurance reimbursement funds for body work into her own accounts. The scheme reportedly lasted from at least June 1, 2002 until June 1, 2009. Cron, pictured here with an unidentified friend, faces up to 20 years in prison, plus restitution and fines.

Read the story here.

Pennsylvania Woman Charged With Embezzling $500+K From Auto Dealership

Elisa Maria Liberatore-Thomas, 32, of Brownsville, Pennsylvania, was arraigned yesterday on charges she embezzled $534,248 from the Tregembo Ford auto dealership in Bentleyville, where she had been employed as a business manager. Liberatore-Thomas, who had responsibility for making daily bank deposits for the dealership, allegedly began making unauthorized electronic transfers as well as depositing dealership funds into her own accounts at three separate bank accounts at the National City Bank branch in Washington County, beginning in January 2004 and continuing until January 2008. Some of the accounts were reportedly held in the name of her husband, Jeffrey Thomas, although he has not been charged in the case at this time. Specifically, Liberatore-Thomas was charged with theft, receiving stolen property, dealing in unlawful activities, and theft by deception. She had been employed as a manager at the dealership since 2001.

Read the story here and here.

Update (4/19/12): A judge has thrown out the charges against Liberatore-Thomas, now 35, after a "Rule 600" motion by her attorneys for a speedy trial. 

Ohio Man Indicted In $200K Embezzlement Case

Dennis L. Butler, 68, of Hillsboro, Ohio, was indicted today for allegedly embezzling some $202,000 from an unnamed church in Concord Township, Ohio, where he had served as its long-time treasurer. According to the indictment, Butler's scheme spanned a five year period and involved the misappropriation of church funds for his personal use. The indictment charges him with one felony count of theft and one felony count of tampering with records. Butler had been separately employed as an insurance and investment agent.

Read the story here.

Update: Arizona Bookkeeper Sentenced In $650K Embezzlement Case

Yolanda Denise Enos, 46, of Mesa, Arizona, was sentenced today to 27 months in prison for embezzling $649,675 from Noline and Smith L.L.C., dba JR’s Convenience Store in Scottsdale, Arizona where she had been employed as office manager and bookkeeper. Enos was arrested last March and plead guilty to a felony theft charge in August. Prosecutors alleged that Enos' scheme spanned four years from January 3, 2002 to January 31, 2006 wherein she stole cash from the store's cashier envelopes. Enos must also pay full restitution and perform 100 hours of community service.

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

Read the story here and here.

Virginia Woman Charged With Embezzling $100+K From Attorney's Office

Cassandra Lynn Petrice, aka Sandy or Sandra Petrice, 45, of Virginia Beach, Virginia has been charged with embezzling more than $100,000 from a local attorney's office where she had been employed. According to sources close to the matter, Petrice forged checks written on one of the attorney's client accounts and deposited them into her own bank account. According to court documents, the thefts started in February 2006. Petrice was originally arrested on July 20, 2009, but is believed to have recently pleaded guilty in the case. Petrice is awaiting sentencing which is scheduled for January 6, 2010.

Read the docket sheet here.

Update (5/25/10): Petrice was sentenced today to 15 years with 14 1/2 suspended, leaving her six months to serve.

Update: Wisconsin Bank Exec Indicted In $635K Embezzlement Case Commits Suicide

David K. Henke, 50, of Wisconsin Rapids, Wisconsin, was found dead in his car yesterday in an apparent suicide. Henke had been indicted by a federal grand jury last July for allegedly embezzling some $635,000 from the Rapids Municipal Credit Union where he had served as president. Prosecutors had alleged that Henke misappropriated the funds between November 1999 and October 2008 by manipulating the financial institution's books and records. Specifically, Henke was indicted on 20 felony counts, including bank fraud and embezzlement and faced up to 600 years in prison, a $1 million fine, 5 years period of supervised release, and restitution. The Wood County Coroner's office has officially ruled the death a suicide.

Read FraudTalk's original post on this story here.

Read the story here.

Alabama Bookkeeper Charged With Embezzling Nearly $900K

Daphne Miller Brooks, 50, of Woodstock, Alabama, has been indicted on charges she embezzled $878,480 from Equity Development Corporation, a subsidiary of McDonald Management, Inc., where she had been employed as a manager and bookkeeper. The 14 count indictment includes charges of mail fraud, securities fraud and under-reporting income on federal income tax forms stemming from her alleged scheme that lasted from 2004 to 2008. The indictment alleges Brooks misappropriated the funds, in part, by making unauthorized credit card payments for her own benefit.

Read the story here .

Read the DOJ announcement here.

Kentucky Branch Of Big Brothers Big Sisters Charity Victim In $435K Embezzlement Case

According to a civil lawsuit filed late yesterday by the Big Brothers Big Sisters of the Bluegrass, the Kentucky branch of the charity agency has been the victim of an embezzlement conspiracy involving six employees, including its office manager, Bendrea D. Wilson, 31, of Lexington. The amount allegedly stolen exceeds $435,000, according to the lawsuit, which seeks to recover the lost funds, which amounts to over half its operating budget. The new CEO, Dale Suttles, has made a public plea for continued public support. An internal investigation revealed at least 142 forged checks had been written on the agency's accounts totalling $435,837. The scheme reportedly spanned nearly a year from late 2008 until last week. The agency claims that the remaining five individuals who allegedly cashed some of the forged checks included Lexington residents, Demetrius Davis, Danny Fondren, Charles Mealing, Emmanuel Marshall and Danville resident, Marcus Searcy.

Read the story here, here and here.

Update (5/24/11): Wilson has pleaded guilty to embezzling more than $435,000 from Big Brothers Big Sisters of the Bluegrass. She has already agreed to restitution in the amount of $435,837.

Update: Former Montana Bank Teller Sentenced In $800K Embezzlement Case

Leslie Susan Stehr, 45, of Missoula, Montana, has been sentenced to 44 months in prison for embezzling some $803,000 from the First National Bank of Montana where she had been a longtime employee. Stehr, who was originally charged last April, had pleaded guilty in July to federal charges of embezzlement and tax evasion. As part of her sentence, Stehr will be placed on 5 years probation after release from prison and must pay restitution in the amount of $1,015,374. According to prosecutors, Stehr began her embezzlement activities in November 1999 and continued for eight and a half years until February 2008, when she was caught. Stehr was employed as a bank teller supervisor and vault supervisor, which allowed her to manipulate the bank books and records to conceal her thefts. Investigators say Stehr spent the money on maintaining a lavish lifestyle, including expensive gifts for herself and luxury travel. It has been reported that Stehr also has a prior history of embezzlement, from another local bank and an athletic shop where she had previously been employed.

Read FraudTalk's original post on this story here.

Read the story here.

Read the DOJ announcement of her guilty plea here.

Former Pennsylvania Utility Exec Pleads Guilty In $141K Embezzlement Case

Carl Paul Lewis, 54, of Ellwood City, Pennsylvania, has pleaded guilty to embezzling some $141,000 from the Bullskin Township/Connellsville Township Joint Sewerage Authority for which he had been employed as the executive director. Prosecutors had alleged that Lewis stole payroll funds and cash from customer payments to the utility over a period of about 2 years from 2005 to 2007. As part of his guilty plea, Lewis agreed to a sentence of between 1 and 2 years in prison. He also agreed to make restitution.

Read the story here and here.

Update: Louisiana Bank Exec Is Sentenced In $135K Embezzlement Case

Loretta Kathryn Balsamico, 51, of Covington, Louisiana, was sentenced to six months in jail and a follow-on six months house arrest for embezzling $135,800 from Citizens Savings Bank where she had served as an assistant vice president. Balsamico had pleaded guilty late July to the embezzlement. Prosecutors had alleged that she had also falsified bank books and records in an attempt to cover-up her thefts. She is believed to have removed between $5,000 and $10,000 in cash per month from her teller drawer over more than a year period.

Read FraudTalk's original post on this story here.

Read the story here.

Former Wisconsin Insurance Exec Pleads Guilty In $560K Embezzlement Case

Douglas A. Nickerson, 45, of Janesville, Wisconsin, pleaded guilty Friday to embezzling some $560,000 from the General Casualty Insurance Company in Sun Prairie, Wisconsin, where he had been employed as a manager. According to the indictment, Nickerson had checks written to three co-conspirators, under the guise as legitimate insurance claims. The co-conspirators, including David A. Janssen, 47, of Oregon, then deposited the checks, kept a portion for themselves, but kicked back most the money to Nickerson. Janssen and Nickerson were both indicted last June. Over $800,000 was reportedly misappropriated, some $560,000 went back to Nickerson. Janssen is expected to plead guilty to violating federal tax laws for failing to report the money he received in the scheme, which lasted from 2003 until 2008. Nickerson faces up to 10 years in prison upon sentencing, scheduled for next February 16th.

Read the story here.

Read the DOJ announcement here.

Maine Woman Accused Of Embezzling More Than $100K From Law Firm

Amy L. Christiansen, 29, of Oxford, Maine, has pleaded not guilty on charges laid out in a formal indictment that she embezzled more than $100,000 from the law firm of Berman and Simmons between 2007 and early 2009. After the indictment was announced, the law firm released a statement indicating that Christiansen admitted to the theft. She faces up to 10 years in prison if convicted.

Read the story here.

Update (5/27/10): Christiansen, now 30, was sentenced to 2 years in prison for embezzling what is now understood to be about $206,000 from the law firm of Berman and Simmons. 

California Bookkeeper Charged In $245K Salon Embezzlement Case

Bethany Jane Brady, 43, of Newport Beach, California, has been charged with embezzling some $245,000 from the Hampton Salon where she had been employed as a bookkeeper. According to prosecutors, Brady started paying her utility and other personal bills in October 2006 by transferring funds from the Salon's accounts via PayPal. Specifically, Brady was charged on felony counts of grand theft, identity theft, computer fraud and money laundering. Prior to being hired directly by the salon, Brady reportedly handled bookkeeping for an outside accounting firm for 13 years. Brady faces up to 7 years in prison if convicted of all charges. Read the story here and here. Update (4/28/11): Brady was sentenced to 2 years in prison and must pay $250,000 in restitution. She pleaded guilty to one felony count of grand theft and one felony count of identity theft.

Iowa Bank Teller Pleads Guilty In $146K Embezzlement Case

Holly Boehm, 34, of Monticello, Iowa, pleaded guilty last week to charges of bank embezzlement and aggravated identity theft in connection with her alleged theft of some $146,000 from an unnamed bank where she had been employed as a teller. Boehm reportedly used a third party's bank account to access the funds. She faces up to 30 years in prison, plus fines and restitution.

Read the story here and here.

Update: California Ponzi Schemer Pleads Guilty In $40 Million Case

Kenneth Kenitzer, 66, of Pleasanton, California a former principal of Equity Investment Management and Trading, Inc., was officially charged with running a $40 million Ponzi scheme together with co-conspirator, Anthony Vassallo, 30, of Folsom, California. Kenitzer, who is expected to plead guilty to money laundering and mail fraud, is reportedly cooperating with the authorities on the case. According to prosecutors, at least 150 investors lost as much as $40 million as a result of the scheme. Kenitzer and Vassallo reportedly promised investors that they could earn at least 36 percent return by using a proprietary trading program. Kenitzer and Vassallo targeted potential investors in the local Mormon community in the Folsom area. Kenitzer faces up to 30 years in prison.

Read FraudTalk's earlier post on this story here.

Read the DOJ's announcement here.

Update: Missouri Man Sentenced In $341K Union Embezzlement Case

Harry Keil, 51, of St. Charles, Missouri, was sentenced to 27 months in prison for embezzling some $341,000 from the Pension and Health and Welfare Funds of the Trustees of the International Association of Machinists and Aerospace Workers District 9 union where he was employed as a fund administrator. Keil had pleaded guilty last May to one count of embezzlement from an employee benefit plan and one felony count of mail fraud. Keil was originally indicted in late January for embezzlement wherein he was alleged to have created false invoices that were paid and from which he collected the receipts.

Read FraudTalk's earlier post on this story here.

Read the story here.