Update: US Interior Department Official Pleads Guilty To Accepting Bribes

Edgar A. Johnson, 60, of Bowie, Maryland, and a former US Department of the Interior official, pleaded guilty Friday to accepting $15,000 in bribes from an unnamed New Jersey-based company seeking to sell insurance to government agencies. Johnson was employed in the Department of the Interior's Office of Insular Affairs. He was charged with accepting bribes from companies seeking to do business in the US Virgin Islands. Johnson, allegedly needed the extra cash to support tuition payments at a private school for one of his children as well as to support a "lavish" lifestyle.

Read FraudTalk's original post on this story here.

Read the story here and here.

Read the criminal information here.

Read his plea agreement here.

Former Congressman Shays Campaign Allegedly Embezzled From By Manager

Michael Sohn, the former campaign manager of former Representative Christopher Shays (R-CT), allegedly embezzled $273,787 from the campaign, according to a report filed with the Federal Elections Commission. The FBI has been informed and has commenced a formal investigation. Details of the case have yet to be released.

Developing story...

Read about it here, here and here.

Arkansas Man Sentenced To 15 Years For $43 Million Ponzi-Type Investment Fraud Scheme

James Blackman Roberts, 71, of Heber Springs, Arkansas, was sentenced last Friday to 15 years in prison for defrauding investors in a Ponzi-type investment fraud scheme. Roberts was charged August 31, 2007 by the SEC of operating the Ponzi scheme through fraudulent investment vehicles, FOMAC International, Inc., and Consultores Las Tres Americas S.A. offering high returns in foreign exchange markets. Instead, authorities alleged that Roberts misappropriated investment funds to enrich himself and paid off earlier investors with later investor funds. Roberts plead guilty in May 2008 to one count of wire fraud in connection with the scheme. Roberts was also ordered to pay $43,456,874.40 in restitution to the victims of his fraud.

Read the story here and here.

Read the DOJ's announcement here.

Read the SEC's original announcement here.

Update: Michican Couple Arraigned In $1.8 Million Embezzlement Case

Amy Lynn McDonald, 36 and Erick Donald McDonald, 38, of Waterford Township, were extradited back to Michigan yesterday from New Orleans where they were arrested and arraigned on charges they embezzled some $1.8 million from the Palace of Auburn Hills. Prosecutors have increased the embezzlement amount, presumably based on further investigation. They are being held in lieu of a $2 million and a $2 1/2 million bond, respectively. Amy McDonald was a longtime accounts payable manager and has denied any wrongdoing. They are suspected of using company credit cards and other means to pay for numerous personal items and expenditures, including motorcycles, vehicles, electronics, sporting goods, luxury vacations and cruises -- even Erick's monthly court-ordered child support to an ex-wife.

Read FraudTalk's original post on this story here.

Former Abramoff Tied Lobbyist Pleads Guilty To Conspiracy To Commit Honest Services Fraud

Todd A. Boulanger, 37, pleaded guilty yesterday to charges he conspired to commit honest services fraud in connection with his lobbying efforts with previously convicted lobbyist, Jack Abramoff. According to the complaint, Boulanger, along with others, gave "numerous things of value" to a number of public officials in an effort to influence them. These items included travel, professional sports tickets, concert tickets, expensive meals, and the like. Abramoff, who plead guilty in January 2006 to honest services fraud and tax evasion, was sentenced to 4 years in prison in September 2008.

Read the story here and here.

Read the DOJ announcement here.

Former Texas Restaurant Manager Sentenced To 2-1/2 Years For Embezzlement

Orchid Lynette Hill, 48, of Midland, Texas, was sentenced yesterday to 2 1/2 years in prison, plus restitution for embezzling $115,000 from the International House of Pancakes where she had worked as the general manager. Hill was convicted November 13th on 11 wire fraud counts for sending false accounting reports to the company's regional headquarters for the period August 2006 to January 2007. The investigation and trial did not reveal how the embezzlement scheme was accomplished as it was done in a "deceptive manner" according to investigators. Nevertheless, Hill prepared the fraudulent financial reports which is what she was convicted on.

Read the story here, here and here.

California Bookkeeper For Internet Security Company Pleads No Contest In $130K Embezzlement

Russell Morita, 48, of Sunnyvale, California, pleaded no contest to charges he embezzled some $130,000 from his former employer, Trend Micro in Cuppertino, California. According to prosecutors, Morita used a company credit card between 2004 to 2007 to buy many electronics items which he had shipped directly to his home. In some instances Morita allegedly charged twice the amount on some items he bought and had the balance refunded to his personal account. Morita was an employee in the accounting department of Micro Trend.

Read the story here and here.

California Bookkeeper Indicted In $130K Embezzlement Case

May Yonzon Torres, 37, of Stockton, California, was indicted Thursday on charges she embezzled some $130,000 from her employer, Architectural Amenities Inc., also of Stockton. Torres, who was charged with grand theft of personal property and falsifying corporate books, also had her Filipino passport was confiscated when released on her own recognizance. Torres allegedly used the company checkbook to fraudulently pay herself and her relatives. The thefts reportedly occurred between February 2005 and October 2008.

Read the story here and here.

Read the indictment here.

Update: California Aviation Company Bookkeeper Indicted

Brenda Kaye Kemper, 57, of Lodi, California, and the former bookkeeper for Big Valley Aviation Inc., was indicted today on charges she embezzled more than $1 million from her employer.

Read FraudTalk's original post on this story here.

North Carolina Volunteer Fire Department Treasurer Charged With Embezzlement

David Lowell Joyner Jr., 28, of Elm City, North Carolina, was charged today with embezzling more than $100,000 from the Coopers Volunteer Fire Department where he had worked as treasurer. According to investigators, Joyner made fraudulent invoices and then wrote bogus checks which he was able to cash. It is still unknown how much was taken as the investigation is continuing.

Developing story...

Read the story here, here and here.

2 Federal Judges In Pennsylvania Plead Guilty To Honest Services Fraud In Receipt Of $2.6 Million "Finder's Fees"

President Judge Mark A. Ciavarella, age 58, and former President Judge Michael T. Conahan, age 56, both of the Luzerne County Court of Common Pleas, pleaded guilty Monday with conspiring to defraud the IRS, in connection with a multimillion honest services fraud scheme involving the placement of juveniles in juvenile detention facilities. According to prosecutors, Ciavarella (pictured on the left) and Conahan (on the right) concealed their receipt of more than $2.6 million between January 2003 and April 2007 from 2 unnamed individuals as "finders fees" in placing juveniles. In their plea agreement, the two judges agreed to resign their positions, immediate disbarment, spend 87 months in prison and make restitution.

Read the story here, here and here.

Read the DOJ's announcement here.

Update: Marc Dreier Indicted On Conspiracy & Fraud Charges

Marc S. Dreier, 58, of Manhattan, and the former founding partner of the law firm that bears his name, was indicted yesterday on conspiracy and securities fraud and wire fraud charges in connection with the alleged sale of fraudulent promissory notes to hedge funds. The scheme, which reportedly cost investors some $400 million in losses, allegedly ran from 2004 to 2008, and promised returns of 8 to 12 percent on 2 year notes owed by real estate developers. Instead, prosecutors allege Dreier used the funds to pay earlier investors in a Ponzi-type scheme and to finance a lavish lifestyle. Drier allegedly fooled the due diligence of hedge funds by hiring impersonators to pose as representatives of the real estate developer, including its CEO. He is represented by noted New York-based defense attorney, Gerald L. Shargel, Esq. Held in jail on $20 million bail, Dreier faces up to 20 years in prison, plus fines and restitution, if convicted.

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

Read the story here and here.

Montana Woman Sentenced For Embezzling $730K From Bank

Kari L. Alfred, 25, of Lolo, Montana, was sentenced yesterday to one year in prison, plus restitution for embezzling some $730,000 from Farmers State Bank where she had been employed as a bank teller. According to prosecutors, Alfred began stealing in late 2006 and was able to defeat the security cameras by turning her back to them. According to reports, Alfred started by takins small amounts of cash but soon graduated to taking as much as $2,000 per day, "force-balancing" the bank's computer system to cover her tracks. The fraud was uncovered by a routine audit while she was on leave, revealing $73,000 missing. She plead guilty to embezzlement from a bank on October 1, 2008.

Read the story here and here.

Read the DOJ's announcement of her arraignment here and her guilty plea here.

Embezzlement Suspect Surrenders After Standoff In Atlantic City, New Jersey

William Serrano, 53, of Corum, New York, wanted for embezzlement by Suffolk County, New York authorities, held off police for 11 hours while in a holding cell at the Trump Taj Mahal Casino Resort in Atlantic City, New Jersey before surrendering. The suspect, who allegedly embezzled an undisclosed amount, had been detailed in the security office at the hotel when he pulled a gun and threatened to kill himself during the standoff. Negotiators convinced him to surrender.

Developing...

Read the story here and here.

Florida Woman Sentenced To Nearly 6 Years For $12.7 Million Embezzlement

Yolanda Serrano, 45, was sentenced last week to 5 years and 10 months in prison for embezzling $12.7 million from her former employer, Cocoa, Florida-based Southeast Petro Distributors, Inc., a gasoline distributor. Serrano, who pleaded guilty to wire fraud last September 30th, also must forfeit $455,000 in bank assets, under the plea agreement. She was originally arrested in April 2008 and charged with grand theft and "scheming to defraud" by state authorities, but indicted in August on federal wire fraud charges. Serrano worked for Southeast Petro Distributors, owned by Mike Shah and his family, since 1992, becoming the controller in 1998. From 2000 - 2007, Serrano embezzling from the company by transferring funds from corporate accounts to her own at SunTrust Bank. She used the funds to purchase a number of properties in Florida, Georgia and North Carolina. It was reported that she spent 3 million to build a waterfront pagoda in Florida.

Read the story here, here and here.

Blagojevich Removed As Governor By State Senate

Rod Blagojevich has been removed as governor of the State of Illinois by a unanimous 59-0 vote of the State Senate late this afternoon. Following revelations from his public corruption investigation that he allegedly attempted to sell President Obama's former US Senate seat, the embattled Blagojevich was impeached on January 9th by the Illinois House in a vote of 114-1. He is the first Illinois governor ever and the first US governor in more than 20 years to be removed by impeachment. Lt. Governor Patrick Quinn was immediately sworn in as the new governor.

Read FraudTalk's original post on this case here.

Read the story here, here and here.

Hartford Mayor Arrested For Bribery

Eddie A. Perez, the Mayor of Hartford, Connecticut, was arrested today on bribery and fabricating evidence charges. The arrest follows nearly a two year investigation into public corruption. Perez allegedly had renovations done at his home by contractor Carlos Costa, who in turn, has reportedly done millions of dollars in contracting work for the city. Further, according to the arrest warrant, there have been “numerous instances where Mayor Perez [in his official capacities as mayor] apparently intervened in matters to benefit Carlos Costa or Carlos Costa obtained assistance from Mayor Perez to benefit himself (Costa).”

Read the story here, here and here.

Read the Connecticut Criminal Justice press release here.

Read the arrest warrant here.

Former Accountant Of Massachusetts Based Public Television Station Charged With Embezzling Nearly $500K

Philip McCabe, age 48, of Reading, Massachusetts, and the former accounting manager for WGBH public television in Boston, was indicted today on charges he embezzled nearly half a million dollars from the station. According to prosecutors, McCabe, who had control over corporate accounts to pay vendors, used those accounts to pay personal expenses on corporate and personal credit cards for such things as vacations, golf outings, restaurant tabs, liquor, clothes, household goods, gas and many other personal expenses over a nine year period from 1998 to 2007. He has been indicted on two counts of making false entries in corporate books and two counts of larceny. McCabe, who was a 20 year veteran employee of station, is scheduled to be arraigned on February 6th.

Read the story here, here and here.

Trial Date Set For California Tire Company Embezzlement Case

Michael Bush of Oxnard, California, who has pleaded not guilty to charges he embezzled more than $500,000 from his former employer, Big Brand Tire Co., is scheduled to go on trial April 14 in Ventura County Superior Court. Bush, who was employed as the company's financial controller, is charged with five counts of filing a false state income tax return, three counts of grand theft and one count each of corporate embezzlement and failure to file a state income tax return.

Read the story here.

Update: Former Virginia Banker Pleads Guilty To Embezzling Nearly $500K

Rebecca Dawn Long, 35, of Jonesville, Virginia, pleaded guilty yesterday to charges she embezzled nearly half a million dollars from her employer, People's Bank of Ewing. Long pleaded guilty to five charges including bank fraud and bank embezzlement. According to prosecutors, she set up a phony line of credit and withdrew $487,685 over a four year period. Sentencing is scheduled for April 28th.

Read FraudTalk's original post on this story here.

Read the story here, here and here.

Texas Seminary Sues Former CFO Alleging $165K Embezzlement

The Dallas Theological Seminary has filed a civil suit in Tarrant County, Texas against its former Chief Financial Officer, Rodney Bryant, to recover more than $165,000 the school claims he embezzled. According to the lawsuit, during 2007 and 2008, Bryant wrote checks from the seminary operating accounts to two phony companies he created. Bryant was CFO of the Seminary from 2000 to October 2007.

Read the story here and here.

Another New York Area Ponzi Scheme Investigated

Nicholas Cosmo, 37, and the owner of Agape World Inc. and Agape Merchant Advance LLC, based on Long Island, New York, was arrested Monday night on charges that he ran a $380 million Ponzi-type investment fraud scheme. According to prosecutors, Cosmo offered returns of 48 to 80 percent on "high yield private bridge loans." Specifically, Cosmo was charged with mail fraud. His 1,500 or so victims were mostly middle class investors who, in some cases, lost their life savings. According to reports, Cosmo had gambling debts he owed to the Genovese organized crime family. We note that Cosmo had previously been convicted and spent time in jail for securities fraud.

Read the story here, here and here.

Read the DOJ's announcement here.

Former Louisiana Oil Exec Pleads Guilty To Defrauding Employer

Gregory L. Courtney, 50, formerly of Mandeville, Louisiana and a former engineering executive with Shell Deepwater Development, a subsidiary of Shell Oil Company, pleaded guilty to diverting more than $1 million from a company contract for his own benefit. According to prosecutors, Courtney secretly acquired a Shell Deepwater vendor, Mercury Equipment and Services Inc., and billed his employer under a fraudulent maintenance contract. He also failed to pay more than $400,000 in income to the IRS. Courtney, who pleaded guilty to mail fraud and tax evasion counts, is scheduled to be sentenced on May 6th and faces up to 30 years in prison plus a fine of up to $350,000. The scheme lasted from at least 2001 to 2003.

Read the story here and here.

First Alleged Bailout Fraudster Charged

Gordon Burns Grigg, 46, of Nashville, Tennessee and his firm, ProTrust Management Inc., were charged yesterday with defrauding investors out of $6.5 million with fraudulent investments in the Troubled Asset Relief Program. The SEC has 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.

Read the story here, here and here.

Read the SEC complaint here.

Former AIG Exec Gets 4 Years For Financial Statement Fraud

Christian M. Milton, 61, of Wynnewood, Pennsylvania, the former Vice President for Reinsurance at American International Group, was sentenced yesterday to four years in prison and ordered to pay a $200,000 fine for his role in manipulating the financials of the company. Milton, a 23 year veteran of the company, along with four other executives of the company's subsidiary, General Re Corporation, was convicted on charges of conspiracy, securities fraud and making false statements to the SEC. Other executives convicted in the case include: Ronald E. Ferguson, General Re's former CEO, who was sentenced to two years in prison last month; Elizabeth A. Monrad, General Re's former CFO, who is scheduled to be sentenced on February 12th; Christopher P. Garand, General Re's former SVP in charge of reinsurance, who is scheduled to be sentenced March 4th; and Robert D. Graham, Gen Re's former general counsel, who's sentencing has not yet been scheduled.

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

Read the story here, here and here.

Read the DOJ's announcement here.

Update On Florida Ponzi Scheme Case: Nadel Surrenders To Authorities

After 2 weeks on the run, 76 year old Arthur G. Nadel surrendered to authorities in Tampa, Florida on Tuesday. He is suspected of bilking investors out of as much as $350 million in a Ponzi-type investment fraud scheme.

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

Former Michigan Executive Pleads Guilty To Bribery & Conspiracy

James "Jim" Rosendall, Jr., 44, of Grand Rapids, Michigan and a former executive of Houston, Texas-based Synagro Technologies, Inc., pleaded guilty Monday to charges of bribery and conspiracy in connection with paying a Houston City Councilman to secure a vote in favor of a $1.2 billion sludge contract with the city. Rosendall was president of Synagro's Michican division and a former member of the Michigan Transportation Commission. He admitted that between 2004 and 2008, more than $150,000 was spent on campaign contributions, donations to City Council members' pet projects, churches and community groups in exchange for supporting Synagro.

Read the story here, here and here.

Kickbacks and Embezzlement Allegations Embroil California Grower

SK Foods LP, a Lemoore, California-based grower and processor of tomato and other food products, has had its share of employee misconduct recently. Robert L. Watson, 59, of White Plains, N.Y., a senior purchasing manager at Illinois-based Kraft Foods Inc.'s, pleaded guilty to charges of receiving $158,000 in bribes from SK executive, Randall Lee Rahal, 59, of Ramsey, New Jersey. In return, Watson ensured that Kraft purchased approximately 230 million pounds of tomato products from SK Foods. Rahal also pleaded guilty last month to charges of racketeering, price fixing, bid rigging, and contract allocation conspiracies on behalf of SK. He agreed to cooperate with the government and forfeit $600,000 in ill-gotten gains. In all, prosecutors contend that representatives of six food companies including Agusa Inc., Kraft Foods Inc., Safeway Inc., B&G Foods Inc., ConAgra Foods Inc., and Frito-Lay, a division of Pepsico Inc., received bribes from Rahal.

Separately, Anthony Ray Manuel, 57, of Turlock, California pleaded guilty yesterday to embezzling some $975,000 from Morning Star Packing Co., for whom he worked until joining SK Foods in 2005. Manuel was terminated by SK Foods on Monday, according to reports. It is unclear whether he was involved in wrongdoing while at SK Foods. Manuel also plead guilty to tax evasion.

Read the story here, here and here.

California Couple Ordered To Pay $4.6 Million In Civil Damages Resulting From Embezzlement

Joyce R. Jaska, 49 and Wesley Jaska, both of Apple Valley, California, have been ordered by a civil court judge to pay $4.6 million to Barstow Truck Parts, Joyce's former employer, from which she and her husband were convicted of embezzling hundreds of thousands of dollars. Joyce Jaska was employed as the company's treasurer and was sentenced with her husband, who was also an employee, to 12 years in prison for the embezzlement and filing false tax returns as well as perjury. The Jaska's were originally arrested in 2002 on embezzlement charges. Their attorney claims the arrest was in retaliation for Joyce blowing the whistle on the company for not paying payroll taxes. For their part in the civil case, Barstow Truck Parts documented in their civil case $2.45 million in losses due to Jaska's theft. The judgement includes punitive damages as well. The scheme lasted at least 3 years, from 1999 to 2002.

Read the story here, here and here.

Michigan Embezzlement Trial Gets Underway

Jury selection has commenced in the trial of Hanan Dallo, 42, of Farmington Hills, Michigan, who is accused of embezzling more than $4.6 million from her employer, property manager Hartman & Tyner Inc., for whom she had worked as a bookkeeper for 20 years. According to prosecutors, Dallo conspired with Youssef "Joe" Fakih of Dearborn, Michigan, the owner of USA Construction and USA Holding, whereby Dallo would cause fraudulent invoices to be paid to Fakih's companies and she would get a kickback in return. Prosecutors believe she received at least $1 million from $4.6 million in fraudulent invoices during the scheme which lasted from 2000 until August 2007. Fakih is believed to have fled to Lebanon. Dallo, also known as "Hanna," faces up to 60 years in prison if convicted and more than $13 million in fines. The fraud was uncovered when management received an anonymous letter suggesting the two conspirators were romantically linked and involved in defrauding the company.

Read the story here, here and here.

Former Virginnia Pastor's Trial On Embezzlement Charges Begins Today

The trial for Kenneth L. Montgomery, 49, the former pastor of Hilltop Community Church in Virginia Beach, Virginia, who is accused of embezzling $131,000 from the church, commenced today. Montgomery, who was the pastor from 2004 - 2007, allegedly cashed parishioner's checks instead of depositing them into the Church coffers. Montgomery reportedly stripped his house after it was sold at auction to pay a civil judgment in this case, including its mailbox, a hot tub and kitchen cabinet knobs. He also reportedly removed 10 to 15 shrubs. We note that Montgomery was convicted in 1994 on seven felony counts for embezzlement and theft from his former employer, a painting contractor.

Read the story here, here and here.

Virginia Couple Charged With Embezzling Over $2 Million

Karen A. Hiles, 47, and James G. Hiles, 59, of Suffolk, Virginia, were indicted yesterday on 73 counts alleging they embezzled more than $2 million from an unnamed Virginia Beach-based real estate developer. Karen Hiles was employed as a $19,000 per year part-time bookkeeper for the developer and together with her husband, forged numerous business checks and made fraudulent wire transfers between 2002 to 2007. The indictment alleges that $2.3 million was deposited into bank accounts controlled by Hiles during this period. The pair have been indicted on charges of conspiracy, uttering, mail fraud, wire fraud, bank fraud and aggravated identity theft.

Read the story here, here and here.

Is There A Proliferation Of Ponzi Schemes?

According to Time Magazine, there has been a proliferation of Ponzi schemes which have been uncovered since the Bernie Madoff scandal. These include the $25 million James G. Ossie/CRE Capital Corp. case; the$50 million Joseph S. Forte case; and the $23.4 million George L. Theodule/Creative Capital Consortium LLC case. The article does not suggest why there seems to be a rash of cases as the SEC representative quoted said no official new "push" to go after Ponzi schemers. "We go after them as they come in," according to the article.

Read the full article here.

FraudTalk would also add to the list the following Ponzi-type cases that have been in the press recently and chronicled in these pages:

• Lambert Vander Tuig/Carolina Development Co.; $52 million scheme (read here)
• Ronald Keith Owens/Executive Investors, Inc./Newlife Trade Group; $2.6 million scheme (read here)
• Donald John Manning/Cameron Campbell/Joseph Wayne McCool/The Brixton Group, Ltd.; $4.5 million scheme (read here)
• Gregg Thomas Rennie; $4 million scheme (read here)
• Frank A. Castaldi; "tens of millions" scheme (read here)
• Marc S. Dreier; $380 million scheme (read here)
• James Masat/Stella Levea/Kenneth Mottin/First Americans Insurance Service; $100 million scheme (read here)
• Rod Cameron Stringer/RCS Hedge Fund; $8.5 million scheme (read here)
• Michael J. Riolo/LaSalle International Clearing Corp./Sterling Wentworth Currency Group Inc.; $50 million scheme (read here)
• Jeanetta M. Standefor/Accelerated Funding Group; $18 million scheme (read here)
• Daren Palmer; $100 million scheme (read here)
• Edward Anthony Purvis/Nakami Chi Group Ministries International; $8 million scheme (read here)
• Ricky D. Sluder/Larry C. Saturday/Learn Waterhouse, Inc./Wealth Builders Club, Inc./Qwest International, Inc.; $50 million scheme (read here)
• Charles G. Martin/John E. Walsh/One World Capital Group, LLC; $15 million scheme (read here)
• Leonard Adolph Delk/LAD Management Co.; $3 million scheme (read here)
• Joel Steinger/Steven Steiner/Michael McNerney/Anthony Livoti, Jr./Mutual Benefits Corp.; $1 billion scheme (read here)
• Richard S. Piccoli/Gen-See Capital Corp; $17 million scheme (read here)

Any way you cut it, that is a lot of Ponzi schemes in the news in recent weeks.

California Authorities Move Against $52 Million Alleged Ponzi Scheme

Six principals of Orange County, California-based Carolina Development Co. were charged Thursday with operating a Ponzi-type investment fraud, offering high returns in purported real estate developments near prestigious golf courses in Southern California. According to prosecutors, Lambert Vander Tuig, 50, of Rancho Santa Margarita, California and the former president of Carolina Development, together with former vice president, Jonathan Carman, 45, of Laguna Hills, were at the center of the fraud that cost more than 1,000 investors at least $52 million. Other co-conspirators in the case include: Mark Sostak, 50, of Ladera Ranch; Soren Svendsen, 43, of Coto de Caza; Scott Yard, 47, of Costa Mesa; Robert Waldman, 48, of Irvine. With the exception of Yard who has not yet been arrested, and Waldman who is expected to turn himself in today, all are being held pending hearings. They have all been charged with grand theft and securities fraud in connection with making unregistered fraudulent offers, sales and purchases of securities. The SEC previously won major judgments against Vander Tuig and Carman. The alleged conspirators played off famous golfing names such as Greg Norman and Arnold Palmer.

Read the story here, here and here.

Read the SEC's original litigation release here.

Update On Military Bribery Scheme Case: Maine Man Pleads Guilty

Maurice Henry Subilia, 64, of Kennebunk, Maine, has agreed to plead guilty in a bribery scheme that bilked the government out of as much as $7 million, according to prosecutors. Subilia is the former president of Fiber Materials Inc. in Biddeford, Maine who is charged with conspiring with Michael Cantrell and Douglas Ennis, two former officials of the US Army Space and Missile Defense Command in Huntsville, Alabama, by paying bribes in exchange for contracts and financing steered toward Lealagi, Inc. and Sage Technologies, entities independently controlled by Subilia and unrelated to Fiber Materials. The scheme went on between 2000 and 2007, according to prosecutors. Both Messrs. Cantrell and Ennis have pleaded guilty and are awaiting sentencing in Alabama. We note that Subilia was previously found guilty in 1995 with exporting restricted missile technology to India.

Please note: we incorrectly related Fiber Materials with Lealagi and Sage and apologize for any confusion.

Read FraudTalk's original post on this story here.


Read the story here.

New York Utility Employee Sentenced In Bribery & Kickback Scheme

Edward Paul Goldblatt, 57, of Melville, New York and a former employee of the New York Power Authority, was sentenced to 37 months in prison and ordered to pay a $5,000 fine for his role in a bribery and kickback scheme in which he received $167,000 in kickbacks from an unnamed New Jersey-based vendor of the utility. Goldblatt also pleaded guilty to tax evasion for income not reported during the years 2005 through 2007. Goldblatt, together with his unnamed co-conspirator, presumably an individual at the vendor company, have also been ordered to pay restitution in the amount of $253,836. Goldblatt was employed as a "Purchasing Warehouse Assistant" for the utility. Goldblatt received kickback payments from the vendor based upon total sales of the vendor, plus he authorized payment on overinflated invoices, the difference of which he split with the co-conspirator. The scheme lasted 4 1/2 years, according to the Information.

Read the story here, here and here.

Read the DOJ's Criminal Information filed against Goldblatt here.

Texas Man Sentenced To 60 Years For Ponzi Scheme Fraud

Ronald Keith Owens, 73, of Mineral Wells, Texas, was sentenced to 60 years in prison for running a Ponzi-type investment fraud scheme that cost investors at least $2.6 million. The state sentence follows a 63 month federal sentenced handed down last month. Owens was charged with selling fraudulent offshore "Bank Credit Instrument Trading" investments that purportedly earned up to 30 percent returns. Instead, Owens paid earlier investors and used the investment funds to enrich himself and his wife. Owens' scheme, which sold the fraudulent investments through a vehicle he controlled, Executive Investors, Inc. aka Newlife Trade Group, went on from March 2000 to September 2007, according to prosecutors.

Read the story here, here and here.

Read the DOJ's announcement of Owens' sentence here.

Former Iowa Insurance Claims Worker Sentenced To 2 Years In Prison For Fraud

Rachel Lenagh, 39, of Neola, Iowa, was sentenced Friday to 2 years in prison for defrauding her employer, Mutual of Omaha, out of $1.4 million in fraudulent insurance claims. Lenagh, who plead guilty to conspiracy to commit health care fraud in October, processed fraudulent health insurance claims for Sharon Johnson of West Dover, Vermont, who in return, paid Lenagh $95,600 in kickbacks, according to prosecutors. The scheme reportedly went on from 2001 to 2006. Johnson is awaiting her own trial.

Read the story here.

Indiana Department of Insurance Investigator Unravelled Schrenker Fraud - Report Says

Lisa M. Harpenau, then a 26 year old Indiana Department of Insurance investigator in 2007, began unravelling the fraud allegedly committed by Marcus J. Schrenker, pictured left, who is now held in a Florida prison, pending hearings on his case, according to a report in the Indianapolis Star. When the heat from Harpenau's investigation intensified, Schrenker attempted to fake his own death by parachuting over Alabama from a plane he piloted. Schrenker is suspected of bilking investors out of millions.

Read the story here.

Another Co-Conspirator Pleads Guilty In California Ponzi Investment Fraud Scheme

Donald John Manning , 71, pleaded guilty Friday for his part in an investment fraud conspiracy that bilked mostly elderly investors out of some $4.5 million. Manning, the former president of The Brixton Group, Ltd., pleaded guilty to one count of conspiracy and one count of wire fraud. The conspirators offered "risk free" investment and returns of 10 percent or more to investors, but instead transferred investment funds from account to account, generating large fees, paying off earlier investors and enriching themselves. According to authorities, Manning was apprehended in Nicaragua in late February 2008. One co-conspirator, Cameron Campbell, an attorney from La Jolla, California, has already pleaded guilty in this case and was sentenced to 63 months in prison and ordered to pay $4.5 million in restitution last April. A third co-conspirator, Joseph Wayne McCool, 61, remains at large and is believed to be in the Philippines (pictured right). Manning is scheduled to be sentenced on April 15 and faces up to 10 years in prison, plus fines and restitution.

Read the story here, here and here.

Read the DOJ's press announcements here and here.

See McCool's Wanted poster here.

Arizona Authorities Investigating Possible $300K Embezzlement At Museum

The Tucson Police Department Fraud Unit and the Arizona Attorney General's Office are investigating a case of possible embezzlement at the Tucson Museum of Art. According to reports, the investigation is focusing on a former accountant at the museum. The embezzlement is believed to have taken place over a nine year period and cost the museum as much as $300,000. The case is ongoing.

Update On Petters Case: Authorities Charge Him & 2 Associates With Hiding Assets

Minnesota businessman Tom Petters, who has been accused in a $3 billion fraud scheme, has now been charged with hiding assets that had been ordered frozen by the court. Petters and two associates, Michael Catain and Deanna Coleman, attempted to "hide or divert" certain assets, including $50,000 from a lodge in Wisconsin, seasons tickets, proceeds from a vehicle that was sold, and other items.

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

Read the story here.

Massachusetts Man Charged With Defrauding Investors

Gregg Thomas Rennie, 42, of Quincy, Massachusetts, has been charged with securities fraud by state regulators. Rennie is accused of defrauding investors out of as much as $4 million by offering both genuine and phony investment products. Rennie, a former registered broker dealer and recent former principal in Providence, Rhode Island-based Harvest Financial Services, promised investors returns of as much as 13 percent, according to the complaint. When unhappy clients had demanded their money back, Rennie reportedly became "evasive." He allegedly pocketed investor funds for personal expenses and luxury items and a lavish lifestyle. Rennie is a former radio host who had a business program locally in Boston called "Your Money."

This case harkens back to the 2004 fraud case in Massachusetts involving Brad Bleidt who went to prison for defrauding investors out of millions of dollars. Bleidt was the owner of one of the radio stations Rennie appeared on frequently, according to reports. You know, if it smells like a Ponzi-scheme..

Read the story here, here and here.

Illinois Brothers Bilk Home Improvement Company Out Of $1 Million

Louie Filskov, 37, of Lombard, Illinois and his brother, Nick Filskov, 47, of Bloomingdale, Illinois, were charged with embezzling approximately $1 million from Louie Filskov's employer, A Better Crawlspace, Inc., based in Bensenville. According to prosecutors, Louie Filskov, who was General Manager at the company, was responsible for accepting checks written to the company and distributing checks written by the company. The indictment charges him with cashing some of the checks at a currency exchange and pocketing the money for his and his brother's own benefit. According to the prosecutor, the scheme went on over a period of 2 years. They have been charged with theft, theft by deception and money laundering. Louie Filskov also faces identity theft charges.

Read the story here and here.

Read the DuPage County State's Attorney's Office announcement here.

Illinois Businessman Accused Of Running 22 Year Ponzi Scheme

Frank A. Castaldi, 55, of Prospect Heights, Illinois, was charged today with mail fraud, alleging he ran a Ponzi-type investment fraud scheme over a 22 year period. Castaldi allegedly sold investors six-month promissory notes that allegedly paid 10 to 15 percent annual interest. Investment funds were used to pay earlier investors and to enrich Castaldi, according to the complaint. He is also charged with making false statements to investors. The scheme has cost investors "tens of millions of dollars" according to prosecutors. He faces up to 20 years in prison if convicted.

Read the story here, here and here.

Read the DOJ's announcement here.

Michigan Couple Arrested In New Orleans In $1.5 Million Embezlement Case

Amy Lynn McDonald, 36, and Erik Donald McDonald, 38, a married couple from Auburn Hills, Michigan, were arrested today in New Orleans on embezzlement charges. Authorities report that they commenced an investigation into Amy McDonald, who was suspected of embezzling $1.5 million from her employer, Palace Sports and Entertainment Inc., in Auburn Hills over a two and a half year period. She is alleged to have used company credit cards for her own and her husband's benefit. Erik McDonald is alleged to have assisted Amy in her embezzlement scheme and directly benefited. The couple, who were charged in June on 4 felony counts each, are awaiting extradition back to Michigan. Erik McDonald faces an additional felony firearms charge because he has two prior criminal convictions.

Read the story here and here.

Read the Auburn Hills Police Department wanted poster here.

Former New York State Senate Leader, Joseph Bruno, Indicted For Fraud

Joseph L. Bruno, 79, of Brunswick, New York and the former Republican New York State Senate leader, was indicted today on fraud charges that he failed to disclose several million dollars in income from lobbyists while in office. The eight-count indictment accuses Bruno of violating his fiduciary duty to provide the state and citizens with “honest services." He has pleaded not guilty. According to the indictment, Bruno created two business entities, Capital Business Consultants LLC and at CMA Consulting Services, which collected some $3.2 million between 1993 and 2006 from five groups, including labor unions. The largest contributor was Wright Investors Service of Milford, Connecticut, which paid him nearly $1.4 million over a 12 year period. He faces up to 20 years in prison plus a fine of $250,000 for each count if convicted.

Read the story here, here and here.

Missouri Homebuilder Charged With Bank Fraud

Edward Levinson, 49, of Chesterfield, Missouri, and president of Levinson Homes, was indicted yesterday on bank fraud charges alleging that prospective homeowners, banks and subcontractors were defrauded out of more than $10 million. Prosecutors allege that Levinson obtained construction loans and deposits to build homes, but pocketed the cash instead. The indictment charges 10 felony counts of bank fraud, each carrying up to 30 years in prison and $1 million in fines if convicted.

Read the story here and here.

Georgia Man Charged With Operating Ponzi Scheme

James G. Ossie, 49, of Alpharetta, Georgia, was charged by the SEC last week with operating a Ponzi-type investment fraud through his company, CRE Capital Corporation. The SEC action freezes Ossie's and CRE's assets. According to the SEC's complaint, Ossie's Ponzi scheme, which promised 10 - 20 percent returns every 30 days on a currency trading program, raised at least $25 million from investors. CRE had been planning a public offering to raise as much as $100 million, according to the SEC.

Read the story here and here.

Read the SEC's complaint here.

Update: Dreier Remains In Jail As High Bail Is Set

Marc S. Dreier, 58 and the former founding partner of the Manhattan-based law firm that bears his name, remains in federal custody pending a $20 million bond set by federal Magistrate Judge Douglas F. Eaton in New York. Dreier is accused of bilking hedge funds and investors in a Ponzi-type investment fraud to the tune of $380 million. He has been charged with wire fraud and securities fraud.

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

Former California Banker Pleads Not Guilty To Embezzling Educational Trust Fund

James Lester Harrison, 61, of Ukiah, California has pleaded not guilty to charges he embezzled from an educational trust he managed at the Savings Bank of Mendocino County where he was employed as a vice president until 2005 when allegations surfaced. Harrison is accused of looting the Viola and Oscar Allen Trust, which was set up in 1993 for the benefit of student scholarships at Ukiah High School, to the tune of some $421,000. The Allen's had named Harrison trustee. Prosecutors alleged in their criminal complaint that Harrison used the trust as his "own personal piggy bank" for 14 years. Harrison reportedly used the money to purchase real estate, luxury vehicles, pay credit cards and make personal loans, among other things.

Read the story here, here and here.

Tennessee Woman Pleads Guilty To Defrauding Texas Medical Center Of More Than $850K; Accomplice Expected To Plead Guilty Next Week

Sheri Lynn Mitchell, 48, of Cleveland, Tennessee, pleaded guilty today to her role in an embezzlement scheme involving Hendrick Medical Center, dba Hendrick Health Services, of Abilene, Texas. Mitchell was the owner/operator of Physician Source, a physician recruiting business. Her accomplice in the scheme, Laura Cullars Minor, 52, of Abilene, Texas is a former employee of the medical center and is expected to plead guilty next week, according to reports. The pair is accused of embezzling at least $850,000 from the company over a five year period. According to prosecutors, Mitchell would submit false invoices to Minor for services not performed, who would then approve the invoices and receive a kickback from Mitchell. Minor was employed as director of physician recruiting and received nearly $300,000 in kickbacks from Mitchell, according to prosecutors. The two were originally indicted in October 2008 on one count of conspiracy to commit mail fraud and health care fraud, eleven counts of mail fraud and aiding and abetting, and eleven counts of theft in connection with health care. Mitchell has several aliases, including Sheri Samuels and Sheri Dawes.

Read FraudTalk's original post on this story here.

Read the DOJ's announcement of the indictment here.

Bipartisan Bill Introduced In Senate To Bolster Anti-White Collar Crime Investigations

Senators Charles Schumer (D-NY) and Richard Shelby (R-Alabama) introduced a bill today that would spend $110 million to hire new prosecutors, investigators and lawyers for the Department of Justice and Securities & Exchange Commission. Specifically, the bill would authorize $80 million for 500 new FBI agents, $20 million for 100 investigators at the Securities and Exchange Commission, and $10 million for 50 new assistant U.S. attorneys.

Florida Ex-Bank Manager Accused Of Bilking $11 Million From Customer Accounts

Ricardo Figueredo, of Miami Beach, Florida and a former manager at Bank of America, NationsBank and Barnett Bank, has been accused in an Information filed today by federal authorities of misappropriating at least $11 million from client accounts. Figueredo's scheme dates back to the mid 1990's and continued through 2008, according to authorities. The complaint charges that Figueredo, who was an assistant vice president at BofA, handled foreign clients who held accounts in the United States. He is alleged to have used the stolen funds to make investments in Guatemala and Spain and "to support his lavish lifestyle.'' He faces up to 30 years in prison if convicted, plus fines and restitution. Figueredo was originally employed by Barnett Bank, which was later acquired by NationsBank and subsequently acquired by BofA.

Read the story here and here.

Read the DOJ's announcement here.

Iowa Company Reports $300K Embezzlement

Advanced Automation of Des Moines, Iowa reported to police yesterday that an unnamed female bookkeeper is suspected of embezzling at least $300,000 from the company. The alleged embezzlement dates back some 4 years to 2004, according to police.

Developing...

Read the story here.

Nebraska Authorities Investigating Alleged Ponzi Scheme

The Nebraska Attorney General's office announced yesterday that they were investigating First Americans Insurance Service, a Native American insurance company based in Grand Island, Nebraska on suspicion that it has been operating as a Ponzi-type investment fraud scheme. First Americans filed for bankruptcy on January 12, listing up to $500 million in liabilities. The investigation centers on how more than $100 million disappeared. The company's three principals are James Masat, Stella Levea and Kenneth Mottin.

Developing...

Read the story here, here and here.

SEC Charges Texan With Runing Ponzi Scheme

The Securities & Exchange Commission today announced that it has brought an action against Rod Cameron Stringer, 43, of Lamesa, Texas and a former bail bondsman, charging him with running a Ponzi-type investment fraud and misappropriating investor funds. The action also freezes Stringer's assets. According to the complaint, Stringer has been defrauding his clients since at least 2001. Through his purportedly hedge fund, RCS Hedge Fund, Stringer promised returns as high as 61 percent. The SEC alleges that Stringer only invested 20% of the investment funds, the remainder of which he used to pay off older clients and to enrich himself. He raised some $8.5 million since 2007 alone. The complaint alleges Stringer used investment funds to "finance a horse racing partnership, purchase a luxury boat, build a swimming pool at his office, purchase several pieces of jewelry, pay off mortgages on at least two houses, and purchase several expensive cars and trucks," among other things.

Read the SEC's litigation release here.

Read the story here, here and here.

Update On Missing Florida Money Manager Nadel: SEC Charges Him With Fraud

The Securities & Exchange Commission has charged missing Florida money manager Arthur G. Nadel, 76, of Sarasota, with securities fraud, alleging he misled investors by overstated the value of 6 of his funds by some $300 million. Nadel reportedly left a note to his wife when he disappeared on January 14th, suggesting his guilt and contemplating suicide. Authorities believe he staged his disappearance and found evidence that he transferred at least $1.25 million to two secret bank accounts he controlled.

Read FraudTalk's original post on this story here.

South Florida Man Sentenced In $7 Million Healthcare Fraud Case

Remberto Sarmiento, 47, of Miami, Florida, was sentenced to 8 years in prison for his role in a $7 million healthcare fraud scheme. Sarmiento was found guilty of 20 counts of healthcare fraud relating to making fraudulent billings to Medicare resulting from stolen patient information. According to prosecutors, Sarmiento purchased the two medical companies to receive the ill gotten gains, APR Medical Equipment and Super Medical Supply. Those funds were then transferred to a shell construction company.

Read the story here.

Read the original indictment here.

FBI Investigating Another Alleged Ponzi Scheme In South Florida

Michael J. Riolo, 37, of Boca Raton, Florida, is being investigated by the FBI following a civil law suit filed by investors claiming he ran a Ponzi-type investment fraud scheme. Losses could be as high as $50 million, according to one burned investor. Riolo's companies, LaSalle International Clearing Corp. and Sterling Wentworth Currency Group Inc., based in Coral Springs, Florida, purportedly invested in foreign currency arbitrage transactions. We note that Riolo had reportedly been arrested in 2002, by the DEA in connection with illegal Internet trafficking of the "date rape" drug GHB. However, the case was not pursued.

Read the story here and here.

California Woman Sentenced In $18 Million Real Estate Ponzi Investment Fraud Scheme

Jeanetta M. Standefor, 40, of Altadena, California, was sentenced to 151 months (more than 12 and a half years) in prison for operating an $18 million real estate investment scheme targeting the African-American community, according to prosecutors. The Securities & Exchange Commission brought an action against Stendefor and her company, Accelerated Funding Group in May 2008, alleging that between 2005 and 2007, she convinced more than 600 investors to invest $18 million in the scheme which purported to purchase distressed real estate that would bring returns of up to 50% within 30 - 45 days. The complaint also alleged that Standefor misappropriated nearly $2 million in investor funds to pay for personal expenditures, including a lavish wedding and honeymoon. She was originally charged with 11 counts including wire fraud, mail fraud and money laundering

Read the SEC's litigation release here.

Read the story here, here and here.

Southern California Man Sentenced In Payroll Embezzlement Scam

Robert Lee Winn, 43, of Norco, California, was sentenced yesterday to 5 years in prison for embezzling some $487,000 from his former employer, Advanced Medical Optics. Winn worked as a payroll manager for the company and was able to make payroll deposits directly into his own account, according to prosecutors. He also used the company accounting system to cause the company to pay the taxes on the payroll deposits. The thefts occurred between December 31, 2003, and July 2, 2007, according to the complaint. Winn, who plead guilty to 48 counts of fraud in December, reportedly used the money to make home improvements, purchase luxury items and on gambling. He was also ordered to pay restitution. Winn's home was sold after the company got a civil judgment against him, recovering about $100,000 of the loss.

Read the story here, here and here.

Missouri Man Pleads Guilty In Church Publishing Embezzlement Case

John F. Gehm, III, 32, of Town and Country, Missouri, pleaded guilty yesterday to stealing some $104,000 from his employer, Pastoral Solutions, Inc., a church bulletin publishing firm based in Ellisville, Missouri for which he was employed as a sales manager. According to prosecutors, Gehm stole checks made out to the company and deposited them into his own accounts and paid for vehicles he purchased. Specifically, Gehm, who was indicted in October 2008, pleaded guilty to one felony count of "interstate transportation of stolen securities and money." He used the proceeds to pay personal expenses and to purchase as many as 5 Lexus vehicles, which he had titled in the name of the company, according to the complaint. The thefts occurred between March 2007 to April 2008.

Read the story here, here and here.

California Bookkeeper Arrested On Suspicion Of $1.1 Million Embezzlement

Brenda Kaye Kemper, 57, of Lodi, California was arrested last week on charges of embezzling some $1.1 million from her employer, Big Valley Aviation, Inc., of Stockton, California. Kemper was employed as the company's financial manager and has been charged with grand theft of personal property and falsifying corporate books. Kemper's thefts allegedly span more than 7 years, dating back to 2001, according to investigators. Her allegedly fraud was uncovered when she went to have gastric bypass surgery last summer and left the books and records in disarray. She is also alleged to have opened credit card accounts in the company's name and used them for her own benefit. According to reports, Kemper kept complete control over the company's finances and left everyone else in the dark. She was a 20 year employee of the company.

Read the story here, here and here.

Executives Of Asian LCD Companies Guilty Of Price Fixing Also Plead Guilty

The US Department of Justice announced last week that four executives of Asian Liquid Crystal Display (LCD) companies previously found guilty of price fixing have pleaded guilty to one felony count of violating the Sherman Act. Chang Suk "C.S." Chung, a Korean executive of LG Display Co. Ltd., together with Chieng-Hon "Frank" Lin, Chih-Chun "C.C." Liu and Hsueh-Lung "Brian" Lee, current and former Taiwanese executives of Chunghwa Picture Tubes Ltd., each pleaded guilty to conspiring to fix prices in the LCD market between 2001 and 2006. Under the plea agreement, each will serve a jail term in the US, pay a fine, and cooperate with the ongoing investigation. Chung, the Korean executive of LG Display, will serve 7 months and pay a $25,000 fine. Lin, the Taiwanese former CEO of Chunghwa Picture Tubes, will serve 9 months and pay a fine of $50,000. Liu will serve 7 months and pay a $30,000 fine and Lee will serve 6 months and pay a fine of $20,000.

Read FraudTalk's original post on this story here.

Read the DOJ's plea agreement announcement here.

Alabama Hospice Pays $24.7 Million Fine To Settle Healthcare Fraud Charges

SouthernCare Inc., based in Birmingham, Alabama, has agreed to pay $24.7 million to settle charges it made false claims to the government concerning medicare reimbursements for patients who did not qualify. The case brought against SouthernCare was the result of two qui tam suits filed by two former SouthernCare employees, Tanya Rice and Nancy Romeo, both registered nurses, who will receive $4.9 million as their share in filing the cases. The prosecutor in the case, Alice H. Martin, U.S. Attorney for the Northern District of Alabama is quoted as saying, "Our investigation showed a pattern and practice to falsely admit patients to hospice care who did not qualify and to bill Medicare for that care.

Read the story here, here and here.

Read the DOJ's announcement here.

Alabama Woman Sentenced In Casino Embezzlement Case

Karla R. Dennis, 26, of Bessemer, Alabama, who was found guilty of embezzling more than $260,000 from her employer, Tallapoosa Entertainment Center, was sentenced Friday to 46 months in prison. Dennis was convicted in August 2008 of stealing from the casino, which is operated by the Poarch Band of Creek Indians.

Read the story here, here and here.

Georgia Municipal Court Worker Held In Alleged $120K Embezzlement

Patricia Regina Wilcurt, 47, of Whitesburg, Georgia, is being held on $150,000 bond in the Cobb County, Georgia jail on charges she embezzled $121,000 from the Municipal Court in Austell, Georgia where she worked as a clerk. According to investigators, Wilcurt is believed to have taken cash from court ordered fines and deposited them into her own accounts over the course of about 6 years. She was responsible for depositing the fines at City Hall, but allegedly altered the receipts and kept the cash. Specifically, Wilcurt has been charged with "theft by taking" and "making a false statement." She faces up to 20 years in prison if convicted.

Read the story here, here and here.

Defense Strategy Split In Case Of Florida Priest Pair Accused Of Embezzling $8.6 Million From Parish

Two Delray Beach, Florida priests accused of embezzling some $8.6 Million from their parish appear to be taking different defense strategies in their cases, according to reports. The Rev. John Skehan, 81, pictured on the right, is reportedly seeking a plea agreement on his charge of grand theft, prior to his trial. Meanwhile, the Rev. Francis Guinan, 66, pictured on the left, will be proceeding to trial and prove his innocence, according to his attorney. The two priests were arrested in 2006, first Skehan and then later Guinan upon further investigation, both accused of robbing the offertory money from St. Vincent Ferrer Catholic Church, in Delray Beach. Investigators say the two priests spent the money on "lavish trips, gambling and girlfriends." Skehan started pilfering the collections 42 years ago, according to investigators. The scheme, described as the biggest embezzlement in the US Catholic Church history, was uncovered in 2005 when church auditors forced Guinan, who replaced Skehan in 2003 when he retired, to comply with an audit.

Read the story here, here and here.

Update On Ohio Hospice Embezzlment Case: Former Employee Sentenced To 7 Years

Kathleen A. Lee, 60, of Heath, Ohio, who was found guilty of embezzling a now upwardly revised amount of $454,000 from the Hospice of Central Ohio for whom she was employed for 13 years as its sole bookkeeper, was sentenced earlier this week to 7 years in prison yesterday. The sentence was imposed on one count each of aggravated theft, forgery, and engaging in a pattern of corrupt activity. Over a 5 year period, commencing in 2003, Lee essentially forged or altered 156 Hospice checks to make them payable to herself and cashed them or otherwise used them for her own benefit. According to prosecutors, Lee used the money to pay credit card bills and support various members of her family.

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

Read the story here and here.

Idaho Authorities Investigating $100 Million Ponzi Scheme Investment Fraud

The Wall Street Journal reported today that the Idaho State's Department of Finance is investigating another Ponzi scheme investment fraud as large as $100 million. Daren Palmer of Idaho Falls is the target of an investigation, following complaints by investors, according to the report.

Read the WSJ story here.

Arizona Man Indicted In $8 Million Ponzi Scheme

Edward Anthony Purvis, 39, of Chandler, Arizona, was indicted today charges he ran an $8 million Ponzi scheme through Nakami Chi Group Ministries International. Purvis is currently serving an 18-month prison sentence after he was convicted on one count of bribery of a Chandler police officer and four counts of harassment of public employees in attempt to disrupt the Arizona Corporation Commission's investigation of his investment scheme. Specifically, Purvis has been indicted on one count of "fraudulent schemes and artifices," 21 counts of theft and 21 counts of securities fraud. Between February 2002 and March 2007, Purvis offered unregistered securities through his company promising 24 percent returns, according to the complaint. Prosecutors claim the business was never profitable and that he paid earlier investors off with proceeds from later investors. In December 2008, the Arizona Corporation Commission ordered that Purvis and his wife, Maureen Purvis, pay $11 million in restitution, plus a $250,000 fine. Also arrested with Purvis on the bribery and harassment of public employees charges was co-conspirator and former partner, Gregg Lawrence Wolfe, 45, of Scottsdale.

Read the story here, here and here.

Home Depot Exec Pleads Guilty To Accepting Bribes - Third Such Case For Company

Ronald K. Johnston, 37, of Atlanta, Georgia, pleaded guilty Thursday to accepting bribes from vendors of his former employer, Home Depot, Inc., based in Atlanta. Johnston, who is a former purchasing manager, pleaded guilty to one count of conspiracy to commit wire fraud and two counts of filing a false tax return in connection with accepting bribes from the company's foreign suppliers. According to the complaint, Johnston failed to pay income tax on $186,000 in bribe income. He is the third such former employee to do so in recent months. Anthony Tesvich and James P. Robinson both plead guilty to similar charges in separate cases last summer. Johnston faces up to 23 years in prison, plus a fine of up to $250,000 upon sentencing, which is scheduled for April 1.

Read the story here, here and here.

2 More Sentenced In $50 Million California Ponzi Scheme Case

Ricky D. Sluder, 51 of Houston, Texas and Larry C. Saturday, 66, of Savannah, Georgia, were each sentenced this week to prison for their roles in a Ponzi-type investment fraud scheme in Southern California. Sluder was sentenced to 188 months in federal prison and ordered to pay $44,872,152.38 in restitution. Saturday was sentenced to 63 months and ordered to pay $22,436,076.19 in restitution. The two, who were found guilty of conspiracy and wire fraud, were part of a conspiracy to defraud investors in several fraudulent investment schemes, including "Learn Waterhouse, Inc.," "Wealth Builders Club, Inc.," and "Qwest International, Inc.," according to prosecutors. Other defendants in the case include, Randall T. Treadwell and Arnulfo M. Acosta, who have both been previously convicted and sentenced in this case.

Read FraudTalk's prior post on this story here.

Read the DOJ's press release on the sentencing here.

Wisconsin Man Sentenced To 6 Years In $3.7 Million Fraud Against Clients & IRS

Daniel LaMarch, 56, of Green Bay, Wisconsin and the former co-owner Title Services also based in Green Bay, was sentenced Wednesday to six years in prison and ordered to pay $3.7 million in restitution for tax and wire fraud. According to prosecutors, between March 2002 and February 2008, LaMarch diverted some $1.5 million in client escrow accounts for his own benefit. He also failed to pay payroll taxes of more than $500,000 and did not report more than $100,000 of his own income, according to the complaint. LaMarch owned the title insurance business with his wife, Kay LaMarch. He was originally charged with 20 counts of failing to pay payroll taxes and filing false tax returns.

Read the story here and here.

Update On Fry's Electronics Fraud Case: Siddiqui Pleads Not Guilty

Ausaf Umar Siddiqui, who has been charged in connection with a $65 million fraud scheme while vice president of merchandising at Fry's Electronics in California, pleaded not guilty on Thursday. He has been charged with five counts of wire fraud and four counts of money laundering for embezzling funds and receiving kickbacks by allegedly created a phony company, PC International LLC to receive vendor payments.

Read FraudTalk's prior stories on this case here and here.

Former Ohio Couple Indicted In Kickback Scheme At Railroad

Ronald L. Zullig, 54, and his wife, Jean A. Zullig, 52, currently of Bolivar, Missouri, were indicted recently on conspiracy and fraud charges related to a kickback scheme in which the two are alleged to have engaged involving the Ohio Central Railroad where Ronald Zullig was employed. According to prosecutors, the conspiracy transpired between October 2000 and July 2006. Zullig was employed as a repair manager for the railroad and allegedly collected kickbacks from various vendors including directed a railroad contractor to bill the railroad for work performed at the Zullig's home. Ronald Zullig tried to conceal the scheme by having the contractors write checks to Jean Zullig. They have also been charged with interstate transportation and sale of stolen goods for allegedly selling stolen railroad property, as well as mail fraud, generating false billing invoices and lying to investigators. According to prosecutors, the Zullig's fraudulently received some $140,000 in kickback proceeds. They each face up to 25 years in prison, plus $750,000 in fines.

Read the story here, here and here.

Read the DOJ's announcement of the indictments here.

Florida Money Manager Goes Missing; Leaves Note That Suggesting He Defrauded Investors $350 Million

Arthur G. Nadel, 75, of Sarasota, Florida and a prominent money manager and philanthropist, was reported missing earlier this week by his wife amid a police investigation of complaints from at least five clients that their money is missing. Nadel reportedly left what is described as a "suicide note" suggesting that as much as $350 million could be gone. Nadel was the manager for funds called Valhalla, Viking, and Scoop. Nadel's wife has filed a missing person report with police. The investigation is ongoing.

Read the story here, here and here.

Developing...

Florida Bookkeeper Arrested For Bilking Employer $176K By Forging Checks

Lynn Maruie Wolber, 38, of Venice, Florida was arrested Thursday for allegedly forging 175 checks from her employer, Preferred Custom Homes and North Port Commons in Port Charlotte, Florida, totalling $176,050. According to investigators, Wolber cashed many of the checks or used them to pay her rent and other personal expenses. The scheme went on from June 7, 2007 to November 21, 2008, according to reports.

Read the story here, here and here.

Nevada Power Company Employee Sentenced In $1.6 Million Embezzlement Scheme

Kyle Roher, 38, of Las Vegas, Nevada, and the former Senior Business Analyst at Nevada Power, was sentenced to 2 years in prison and ordered to pay restitution of approximately $1.8 million for stealing more than $1.6 million from the utility company. Prosecutors alleged that Roher made at least 19 fraudulent wire transfers of funds from Nevada Power's "general spending" bank account to two accounts of his during the period from September 30, 2002 to October 26, 2006. He was originally indicted on 19 counts of wire fraud and criminal forfeiture in April 2008.

Read the story here and here.

Read the DOJ's press release here.

Former South Carolina DSS Finance Director & 9 Others Charged In $5.5 Million Scam

Paul Timothy Moore, 61, of Columbia, South Carolina and the former finance director for the state Department of Social Services, along with 9 co-conspirators were charged today with theft of federal program funds, mail fraud, wire fraud and conspiracy in a scheme that defrauded the agency of some $5.5 million, according to prosecutors. The complaint alleges that Moore issued 761 checks between May 2004 and October 2008, in amounts of about $7,000 each to the co-conspirators who then split the proceeds with Moore. Others named in the complaint as conspirators include: Jonathon Moses, 42; Herbert McKie, 27, Aisha Leheva Crumpton, 23, Tyra L. Goodson, 36, Nova Kathleen Johnson, 40, and Sandra Denease Smith, 45, all of Columbia; and Gwendolyn Robinson, 41, Ortyse S. Mazone, 37, and Calandra Fabary Thomas, 38, all of Aiken, S.C.

Read the story here, here and here.

Massachusetts Woman Pleads Guilty To Embezzling $290K

Eda Vivar, 45, of Westborough, Massachusetts, pleaded guilty to 2 counts of larceny for embezzling more than $290,000 from her employer, Cavicchio Greenhouse, Inc., of Sudbury, Massachusetts. Vivar was employed as the company's Human Resource Payroll and Benefits Administrator, created 2 fake employees in order to loot the company payroll accounts, according to prosecutors. Vivar's Ghost employee scheme went on for 4 years, according to prosecutors. She was originally indicted in June when the loss was thought to be $220,000.

Read the story here, here and here.

Read the Massachusetts AG's press release here.

California Woman Arrested For Embezzling $225K From Charity

Donna Joe Goodenough, 46, of Sacramento, California, was arrested Friday for allegedly embezzling some $225,000 from the local charity, Options in Supported Living, where she was employed and had "complete control" over the institution's finances. According to investigators, Goodenough wrote about 100 fraudulent checks to herself between January 2007 to May 2008. She also used the institution's credit card to make unauthorized purchases. Goodenough

Read the story here, here and here.

Read the Sacramento Police Department's press announcement here.

California Escrow Officer Charged With Embezzling Nearly $200K

Barbara 'Bobbi' Lynn Brown, 48, was accused yesterday of embezzling at least $190,581 from Brentwood Escrow, in Brentwood, California, where she worked as a manager. Brown was charged with one count of "grand theft by embezzlement" in connection with unauthorized transfers of funds and property by making disbursements to herself and others for her own benefit. The improper transfers occurred between January 17, 2007 and August 10, 2007, according to investigators.

Read the story here and here.

Read the California Department of Corporations order barring Brown from operating as an escrow agent here.

Marquet International Releases White Collar Crime Study On Embezzlement

Marquet International Ltd., an international investigative and litigation support firm based in the Northeast US, released today a white collar crime study on embezzlement. The study, which involved an analysis of 174 cases of major investment active in 2008, had some interesting findings, including:

• The average loss was more than $2.2 million; the median loss was $500,000
• Nearly 60 percent of the incidents involved female perpetrators
• However, male perpetrators accounted for more than 75 percent of all the losses
• The average adjusted age of perpetrators at the commencement of their embezzlement was 43.5 years old
• 40 – 49 year olds caused nearly 50 percent of all the losses
• Nearly ¼ of all losses were inflicted upon financial institutions
• Non-profit and religious organizations accounted for 10 percent of all the incidents
• Nearly half of the incidents were committed by employees who held finance & accounting positions
• The average scheme lasts nearly 4 ½ years
• The District of Columbia had the highest loss ratio followed by Nebraska, Louisiana, California and Oklahoma
• 20 percent of the cases involved conspiracies which accounted for 42 percent of the overall losses
• Nearly 6 percent of the cases involve perpetrators who had gambling problems
• Only 3 percent of the cases involved perpetrators who had a prior criminal history

I must admit that I was a little surprised at how many women are perpetrators of embezzlements. Although readers of FraudTalk may not be since there seems to be a preponderance of female embezzler cases profiled. To get a copy of the study, e-mail us at info@marquetinternational.com.

Georgia Chiropractor Sentenced To 3 Years For Defrauding Insurers $1.2 Million

Stephen Catterton, 39, of Norcross, Georgia, was sentenced yesterday to 3 years and one month in federal prison for defrauding insurers out of some $1.2 million. Catterton is the owner of two chiropractic businesses, Catterton Chiropractic and Citadel Healthcare Group. Prosecutors alleged that he had overbilled a number of health care insurance providers. He was also ordered to pay full restitution of $1.3 million and perform 300 hours of community service. An investigation, conducted by the FBI, found that from June 2001 and December 2006, Catterton's businesses had overbilled insurance programs by some $3 million.

Read the story here and here.

Massachusetts Woman Pleads Guilty To $375K Embezzlement From Country Club

Bernadine J. Urbanowicz, 62, of Seekonk, Massachusetts pleaded guilty last week to embezzling some $375,000 from the Ledgemont Country Club, also located in Seekonk, where she had worked as a bookkeeper. Urbanowicz admitted to forging signatures on checks made out to petty cash over the course of 5 years while an employee of the country club. Prosecutors alleged that the thefts occurred between 1999 and 2004 and that she hid the cancelled checks and created false entries in the club’s books & records to conceal her activities. She plead guilty to one count of bank fraud and faces up to 30 years in prison, plus a fine of $1 million and restitution. Sentencing is scheduled for April 2nd.

Read the story here.

Read the DOJ's press release here.

Virginia Woman Indicted For Allegedly Embezzling $250,000 From JetBlue Airlines

Carol Davidson, 43, of Midlothian, Virginia and a former school teacher and ex-manager with JetBlue Airlines, was indicted today on charges she embezzled as much as $250,000 from the airline. Davidson use her position with access to accounts and billing documents "to obtain money for travel, electronic devices, and other personal expenses," according to prosecutors. Specifically, she was charged with seven counts of embezzlement, and six forgery or "uttering" charges.

Read the story here.

New Hampshire Woman Charged With Embezzling & Fraud At Massachusetts Bank

Kelly Curley, 35, of Nashua, New Hampshire, plead innocent Tuesday to charges she embezzled some $200,000 from an unnamed Massachusetts credit union she worked for as director of the loan department responsible for underwriting all loans. According to prosecutors, from June 2006 to February 2008, Curley obtained five loans for herself by allegedly using a co-worker's computer and identity and then used the proceeds for her own benefit. On December 22, 2008, Curley was indicted on five counts of "embezzlement by a bank employee" and one count of identity theft.

Read the story here and here.

Read the Massachusetts AG's original press release announcing Curley's indictment here.

Former Michigan Court Magistrate Charged With Embezzlement Of More Than $100K

Kimberly Dobbyn, 51, the former Montmorency magistrate for the 88th District Court in Michigan, was arraigned today on a variety of charges including "embezzlement by an agent over $100,000," using a computer to commit a crime, "computers-fraudulent access $20,000 or more," "uttering and publishing," public embezzlement of public moneys, embezzlement by a public official of over $50.00, public officials-willful failure to uphold law, and public officer-willful neglect of duty. The charges were brought after a 13 month investigation by the Michigan State Police.

Read the story here, here and here.

West Point IT Manager Arrested For Alleged $3 Million Embezzlement

Bobbie Cyana Ryan, 50, of Highland Falls, New York, was arrested today on charges she embezzled some $2.9 million from the U.S. Military Academy at West Point. Ryan was employed in the Information, Education and Technology Division in the Office of the Dean and was in charge of training programs. Prosecutors believe Ryan created false invoices, for which she authorized payments with her government purchase card and had funds transferred to a bank account she controlled in the name of “Bobbie C. Ryan dba CWG Enterprises," and then used the funds for her own personal benefit.

Read the story here, here and here.

Trial Of Former Kansas CFO & Wife Accused Of Embezzling $2.6 Million Postponed

The trial of James W. Foremsky, 61, the former Chief Financial Officer of Emporia, Kansas-based Vektek Inc., and his wife, Susan A. Foremsky, 56, both of Topeka, has been postponed until April. James Foremsky, utilizing his position within the company, is charged with masterminding the embezzlement of $$2,646,554 from the company. According to the indictment, he "unlawfully withdrew funds" from company accounts for his own benefit. Further he had control of the internal checkbook spreadsheets and transferred funds between accounts in an attempt to cover up the thefts. They are each charged with conspiracy to commit bank fraud, wire fraud and money laundering. The couple used the funds to maintain a lavish lifestyle and spent it on items, including, show horses, paying their mortgage, lavish vacations, luxury vehicles, restaurant and bar bills and the like. They each face up to 30 years in prison, plus a fine of $1 million and restitution.

Read the story here, here and here.

Read the DOJ's announcement of their indictment here.

Former New Hampshire Insurance Agent Pleads Guilty To Defrauding Clients

Raymond H. Douville, aka Raye Ellen Douville, 54, of Bedford, New Hampshire, pleaded guilty to embezzling more than $100,000 in insurance premium funds entrusted to her agency for her own benefit. According to prosecutors, from October 2001 to September 2003, Douville accepted funds obtained by clients through loans to pay for premiums, but failed to do so, using the money for her own benefit. In all, 12 different clients were defrauded. Douville was originally indicted last September and pleaded guilty to one count of wire fraud and faces up to 20 years in prison upon sentencing which is scheduled for April 14th.

Read the story here and here.

Read the DOJ's announcement of Douville's indictment here.

Connecticut Woman Admits Embezzling $100+K From Insurance Agency

Deborah Fenton, 44, of East Hartford, Connecticut, pleaded guilty today to embezzling at least $111,000 from her employer, Alliance Insurance, of Manchester, Connecticut, in lieu of facing a trial. Fenton, who worked for the company for 6 years, was arrested back in December 2006 after Alliance's owner, Kenneth Madison, discovered the thefts. Fenton reportedly took cash and checks meant to be deposited into company accounts for her own benefit. She blamed her actions on a recent divorce and desperate financial situation, claiming she needed the money to pay her mortgage, which was near foreclosure, among other daily expenses. She pleaded guilty to first-degree larceny and was given a suspended sentence and ordered to pay a total of $161,000 in restitution.

Read the story here.

Note: Fenton was administered a lie detector test, according to the press report, which she reportedly failed. I thought these tests were ruled inadmissible. Anyone who knows Connecticut law on this issue please chime in.

Nebraska Woman Accused Of Embezzling $116K To Be Arraigned This Week

Jeanette Vanderveen, 49, of Gering, Nebraska is scheduled to be arraigned this week on charges she embezzled at least $116,000 from Print Express in Scotts Bluff, Nebraska. Vanderveen is accused of stealing the money by writing herself and her credit card and other personal vendors checks over a period of 5 years commencing in 2003. Vanderveen was a long-term employee whose responsibility was to "pay the bills and reconciled the bank statements."

Read the story here, here and here.

Police In Indiana Town Investigating Possible Real Estate Management Embezzlement

Goshen, Indiana police are investigating complaints that as much as $130,000 or more has been embezzled from client accounts held by Troyer & Associates, Inc. Details have yet to be disclosed, but it has been reported that 54 clients of Troyer have complained that their funds may have been embezzled. Meanwhile, Troyer owner, Duane A. Troyer, 48, also of Goshen, Indiana (pictured left), is in the hospital recovering from a serious head-on automobile accident that occurred a week before Christmas. He is listed in stable condition. There is no indication at this time that Troyer himself is involved in any wrongdoing.

Developing...

Read the story here.

Minnesota Man Sentenced To 8 Years For $8.5 Million Embezzlement From Financial Institution

Nathan John Mueller, 35, formerly of Eden Prairie, Minnesota, was sentenced to 8 years in prison for embezzling $8.5 million from his employer, ING Reinsurance Corp. According to authorities, the embezzlement scheme lasted four years, between 2003 and 2007. Mueller, who served as an accounting manager for the company, regularly requisitioned checks for ING clients and deposited them into accounts he created with pseudo names similar to ING clients. He was finally caught after 99 checks had been deposited into his accounts - none of which was greater than $250,000, which kept him below the company's anti-fraud detection system. According to prosecutors, Mueller, who pleaded guilty last August, used the proceeds of his thefts to pay for gambling trips and strip clubs. The judge was relatively lenient since he reportedly assisted in locating some of the assets for restitution.

Read the story here, here and here.

Read the DOJ's original announcement of Mueller's indictment here.

California Attorney Arrested For Embezzling From Clients

John Jeffrey Long, 60, of Santa Clarity Valley, California, was arrested Friday for allegedly embezzling more than $150,000 from his clients. Long has been charged with three counts of grand theft by embezzlement and fraud and one count of forgery, according to prosecutors. Long allegedly took the money between June 2006 and July 2007, which was part of a contingency fee arrangement with a client. According to prosecutors, Long essentially kept a larger portion of his client's settlement than the agreed upon 1/3 share. He was also reportedly stole from other clients as well. The California Bar Association disbarred Long in March 2007 for "irreparable injury."

Read the story here.

Alleged Hedge Fund Fraudster Nabbed At San Francisco Airport

Alexander James Trabulse, 61, of Daly City, California and France, was arrested at San Francisco International Airport last week when he arrived on a flight from France. Trabulse has been charged with mail fraud in connection with alleged fraud involving the Fahey Fund LP managed by his Fahey Financial Group, Inc. Authorities claim Trabulse had mailed out account statements to investors that had been inflated as much as 200 percent. Meanwhile, prosecutors claim Trabulse used the money for personal expenditures and to support a lavish lifestyle. According to authorities, investors lost as much as $10 million since at least 1998 when the SEC believes the fraud commenced. The SEC brought an action against him in 2007 and a final judgment was entered against him ordering that all his assets be liquidated.

Read the story here, here and here.

Read the SEC's complaint against Trabulse here.

Tennessee Company Sues Former Bookkeeper Who Allegedly Embezzled $500K

Belz Construction Co. Inc., a Memphis, Tennesse construction firm, filed a civil suit against its former bookkeeper, Sheri Davis Price Martin, who admitted inOctober she embezzled $502,398.14 from the firm between 2002 and 2008, according to reports. An office manager discovered the scam when they found 21 fraudulent transfers from their payroll and expense reimbursement accounts between July and October 2008. Belz Construction, owned by Errol Flynn, is not to be confused with Belz Enterprises, owned by Ron and Marty Belz.

Read the story here.

Mississippi Woman Sentenced To 10 Years For $1 Million Embezzlement

Edith Dianne Belk, 56, of Satartia, Mississippi, was sentenced to 10 years in prison for embezzling nearly $1 million from her employer, Weight Watchers, Inc. Belk, who worked as a bookkeeper for the company, pleaded guilty to bilking the company out of $921,000 over a nearly six year period beginning in 2000. As bookkeeper, Belk was able to write herself a total of 554 checks before her scheme was discovered. She has also been ordered to pay restitution of $674,000. Belk blamed the theft on an addiction to gambling. At her sentencing, Belk is quoted as saying, “I had a real bad sickness. I’m truly sorry. It hasn’t been an easy thing for me.”

Read the story here, here and here.

Missouri Former Pasta CEO Pleads Guilty To Cooking The Books

Timothy S. Webster, 46, of Mission Hills, Kansas and the former CEO of American Italian Pasta Company of Kansas City, Missouri, pleaded guilty to one count of wire fraud in connection with the misrepresentation of the financial health of the company. Warren B. Schmidgall, 58, of Topeka, Kansas and the former CFO of the company also plead guilty to wire fraud. The SEC had charged that Webster (pictured left) and Schmidgall misrepresenting the company’s financial performance between May 2002 and December 2004, violating the anti-fraud provisions of the Sarbannes-Oxley Act. Prosecutors alleged that the company's revenues were overstated by some $36 million during this period. Webster served as CEO from 1992 until 2005 when he resigned. Webster and Schmidgall each face up to five years in prison and $250,000 in fines, plus restitution. Three other American Italian Pasta execs faced criminal charges related to the overstatement of financials, including: David E. Watson, 53, of Kansas City, Missouri and the former executive vice president of corporate development and strategy; Stephanie S. Ruskey, 43, of Odessa, Missouri and the former controller; and Mark Peterson, former vice president of accounting and finance.

Read the story here and here.

Read the SEC's complaint against Webster here and the complaint against Schmidgall and Watson here.

South Dakota Woman Sentenced In $100K Embezzlement Of Scholarship Funds

Donna Marie Quenzer, 49, of Lead, South Dakota, was sentenced to 7 years in prison for stealing scholarship funds from the Lead-Deadwood School District where she worked as a secretary. Quenzer, who pleaded guilty to 12 counts of "grand theft by embezzlement" in November, siphoned off funds from a number of scholarships commencing in June 2002 until April 2008, to the tune of $108,000. She was also ordered to pay restitution by the court. Quenzer, who handled the scholarships for the school district, often would send out letters to recipients that state such excuses as "the scholarship was awarded in error" and "no money available" to cover her tracks. At her sentencing hearing, Quenzer is quoted as saying, “I know I have hurt a lot of people. To this day, I cannot believe I did this.”

Read the story here, here and here.

I am sure she is real sorry now.

New York Couple Sentenced In Embezzlement Casino Laundering Case

Jamine Alabre, 28, of Westbury, New York and her boyfriend, Mathurin Ambroise, 34, of St. Albans, New York, who each plead guilty in July to receiving stolen property, were sentenced Friday for attempting to launder $1 million embezzled from Alabre's employer at Atlantic City casinos. Alabre was sentenced to 5 years in prison and Ambroise to 3 years by an Atlantic County Superior Court judge in New Jersey. According to prosecutors, the two laundered more than $500,000 between January to October 2005 at high-limit slot machines at the Borgata Hotel Casino & Spa and several others. Alabre and Ambroise admitted to attempting to launder the money embezzled from Alabre's employer, Ipsos, a marketing firm based in Long Island. She was responsible for handling cash that went into mailings for surveys as incentives and overestimated the amount needed, pocketing the rest, according to reports. Alabre's scam went on from December 2003 to July 2005, netting her $1,119,807 of which only $29,000 was recovered, according to prosecutors. She was arrested after a routine audit detected the scam and she was charged with grand larceny and falsifying business records.

Read the story here, here and here.

Read the New Jersey Attorney General's press release here.

Illinois Man Sentenced In $1.5 Million Scheme To Defraud His Employer

Michael A. Pallagi, 58, of Maryville, Illinois and the former project manager at Steris Corporation, pleaded guilty to defrauding the company of some $1.5 million over an eight year period. Pallagi set up to phony companies, Performance Packaging, and Performance Concepts, which billed Steris fraudulently. He plead guilty in October to one felony count of mail fraud and was sentenced to 46 months in prison, plus restitution. Under the plea agreement, he as agreed to give up his home in Maryville, which had improvements from some of the ill-gotten gains, according to prosecutors. Pallagi admitted he spent the money on himself, supporting a lavish lifestyle, buying luxury cars and making home improvements.

Read the story here, here and here.

White Collar Fraud Likely To Rise, Experts Say

Newseek published an article Friday suggesting that cases of White Collar Crime are likely to rise in these recessionary times. The article cites a survey conducted by Deloitte's Financial Advisory Group that nearly two-thirds of the 1,500 executives who responded to a poll said they expected more frauds to be uncovered as the economic downturn continues. The article also cites data from the last two economic downturns: in 1990, white-collar fraud arrests jumped 52% over the next two years; in 2000, arrests jumped 25% in the following two years.

In my own experience, I saw spikes in white collar cases in both the early 90's and during the early 2000's.

Read the whole story here.

Illinois Forex Trading Execs Arrested On Ponzi Scheme Allegations

On Wednesday, Federal authorities arrested two principals of Winnetka, Illinois-based One World Capital Group, LLC, on allegations that they ran a Ponzi-type foreign exchange investment fraud scheme that bilked investors of some $15 million, according to reports. The two executives, Charles G. Martin, 43, of Glencoe, Illinois and Malibu, California and John E. Walsh, 60, of Lake Forest, Illinois, are accused of improperly diverting investment funds for their own use money "to finance a lavish and extravagant lifestyle." Records indicate that Martin alone spent $1 million at strip clubs and restaurants. The Commodities Futures Trading Commission shut the company down and froze its assets in December 2007 following numerous complaints from clients who could not take their money out. Martin and Walsh have each been charged with one count of wire fraud which carries a maximum sentence of 20 years in prison, plus a fine of $250,000 if convicted. We believe prosecutors are likely to add charges in an amended complaint.

Read the story here, here and here.

Read the DOJ press release here.

California Executive Pleads Guilty To FCPA Violations

Mario Covino, 44, an Italian citizen residing in Irvine, California and the former director of worldwide factory sales for Control Components Inc., based in Rancho Santa Margarita, California, pleaded guilty Thursday to a one count Information charging him with "conspiring to make corrupt payments to foreign government officials" in order to get business for the company. Covino admitted that from March 2003 through August 2007, he caused agents of the company, which makes valves for the power industry, to pay approximately $1 million in bribes to officials all over the world. The bribes resulted in at least $5 million in profits for the company, according to the Information. He also admitted to lying to and misleading auditors and to deleting e-mails and instructing others to delete e-mails that would incriminate him. Covino faces up to 5 years in prison upon sentencing, which is scheduled for July 20, 2009. He is reportedly cooperating with authorities in the ongoing investigation.

Read the story here, here and here.

Read the DOJ press release here.

3 Arrested In California Cheese Company $377K Embezzlement Conspiracy

Jesse Lopez, 37, and his wife Susanna Garza, 37, of San Jose, California, along with Alejandro Cruz, 36, were arrested recently on charges they conspired to embezzle some $377,000 from Marquez Brothers International Inc., a cheese company based in San Jose. Lopez and Cruz were employees of Marquez Brothers with Cruz in the position of IT and responsible for purchasing computer equipment. Cruz got approval to buy equipment from Nor-Cal Processing, a San Jose company owned by Garza. However, unbeknowst to company management, according to prosecutors, Cruz continued to buy equipment from the regular vendor, marking up the cost, and charging Marquez Brothers more for equipment they had already been purchasing. Prosecutors said that Cruz intercepted receipts from the regular vendor and have Lopez pay them on his personal credit card. Lopez's wife then created fake receipts from Nor-Cal Processing and receive payment from Marquez Brothers. Lopez, Garcia and Cruz would then pocket the difference after the credit card balances were paid off, according to prosecutors. The criminal complaint alleges that they netted some $377,000 through the scheme. They each face up to 5 years in prison, plus fines and restitution if convicted on the charges of grand theft and "excessive taking." The scheme went on for nearly a year and a half between February 2007 and September 2008.

Read the story here, here and here.

Former California Attorney Faces Additional Embezzlement Charges

Edward Duff Hume, 59, of Solvang, California and a practicing attorney in Redwood City, California from 1975 to 2007, has faces additional charges of embezzling from his clients. Hume was accused of embezzling some 824,000 from the estate of one of his clients in 2006 over the course of nearly 2 years while trustee in the probate. He has been charged with five felony counts, including embezzlement, grand theft, commercial burglary and possession of a forged document. Hume was also charged with stealing two loans of $100,000 each from other unrelated clients. He resigned from the Bar in 2007 and is facing a disciplinary hearing in addition to the criminal action. We note that Hume had been disciplined by the Bar in 1998 for mishandling a client.

Read the story here and here .

California Investment Manager Pleads Not Guilty To $3 Million Fraud & Embezzlement Charges

Leonard Adolph Delk, 80, of Los Osos, California and the owner of LAD Management Co. plead not guilty yesterday to eight felony counts of fraud, theft and embezzlement. Delk is charged with misappropriating $3 million in investment funds prosecutors allege he used for his own benefit. It is also alleged that he sold securities in a Ponzi scheme, promising returns as high as 23 percent per year and paid earlier investors with later investors' funds. Prosecutors also alleged that Delk spent investor money on personal credit cards, gas cards, membership fees in a flight club and restaurant and hospital bills. The scheme went on for at least 10 years, according to some reports. Delk was once a prominent citizen in the area, a practicing real estate attorney and having once served as the mayor of the City of Norwalk and an official in the Democratic Party. Nevertheless, we also note that Delk was accused of fraud while an attorney in Los Angeles County in the area of real estate and finance and had his law license suspended in 1985 as a result.

Read the story here, here and here.

Pennsylvania Woman Accused Of Embezzling Nearly $360K

Carole L. McConnell, the former controller of AZCAR USA, a Canadian-based media company with offices in Canonsburg, Pennsylvania, was charged yesterday with embezzling from the company over a 14 month period. Prosecutors claim McConnell wrote $358,892 in corporate checks and forged signatures of company executives which she deposited into her own accounts.

Read the story here and here.

Former New York Area Brokerage Executive Doesn't Make Bail After $2.5 Million Embezzlement

John P. Walsh, 53, of Yonkers, New York and the former Chief Operating Officer of Affina Brokerage Services located in Rye, New York, who is accused of embezzling $2.5 million from the firm, could not make the $50,000 bail and remains in custody. Walsh was accused in May of embezzling from the company by transferring stocks into accounts he controlled. His scheme, which went on over a period of about 8 1/2 years, also involved creating fake stock positions to use as collateral for loans, according to investigators. He has been charged with first-degree grand larceny.

Read the story here.

Colorado Office Manager Sentenced To 9 Months For $100+K Embezzlement

Carrie Smith, 44, the former office manager for the South Jeffco Sports Association, was sentenced yesterday to 9 months in prison for embezzling some $102,000 from the enterprise. Smith was also ordered to pay restitution and has reportedly taken out a second mortgage to do so. According to prosecutors, Smith embezzled the funds between 2005 and 2007, by writing forged checks to her bank and credit card accounts. Her lawyer claimed that she took the money to help pay for her two sons' college expenses. Smith was charged with charges of felony theft and forgery.

Read the story here, here and here.

Massachusetts Man Pleads Guilty To $200+K Embezzlement Scheme

Eugene Van Buren, 39, of Framingham, Massachusetts, pleaded gulity Wednesday to his involvement in an embezzlement conspiracy that defrauded Barry Controls of Hopkington, Mass, of some $211,000. Van Buren conspired with Kim Thomas, 42, of Roslindale, Mass, who was employed by Barry Controls in their accounts payable division, responsible for issuing checks to vendors. In addition to Van Buren, several other individuals have been named in the conspiracy, including: Kim Thomas' husband, Paul Harvey, 57, of Roslindale; Harvey's brother, Frederick Harvey, 50, of Dorchester; Nicholas Petta, 40, of Walpole; Waldron Callum of Randolph and Charles Powell, 46, of Dorchester, according to prosecutors. Barry Controls is an aerospace and defense contractor. The seven indiviudals, including ringleader Thomas, were arrested and charged in February 2008. Thomas reportedly issued checks to these indidividuals that were originally intended for legitimate vendors. She then changed the information in the accounting system to cover the scheme, which lasted more than 2 years, according to prosecutors. Thomas and her husband Paul Narvey Thomas pleaded guilty on December 22 to conspiracy and larceny of more than $250. Thomas also pleaded guilty to making false entries into corporate books. Frederick Harvey, Petta and Powell all pleaded guilty to conspiracy and larceny on December 18th. Thomas was ordered to spend 18 months under house arrest with an electronic bracelet. She and her husband were also ordered to pay restitution in the amount of $190,000.

Read the story here, here and here.

Read the Massachusetts AG's press release here.

4 Floridians Charged With Running Ponzi Scheme With "Viatical" Investments

The US Attorney for the Southern District of Florida announced Monday that 4 individuals had been charged with running a $1 billion investment Ponzi-scheme. The four defendants, Joel Steinger, Steven Steiner, Michael McNerney and Anthony Livoti, Jr., were principals of Mutual Benefits Corp., which sold viatical and life settlement investments to over 30,000 investors worldwide, totalling $1.25 billion in proceeds between 1994 and 2004, according to prosecutors. These investments purchase the rights to the proceeds of terminally ill or elderly individuals, including AIDS patients. The 25 count indictment charges the defendants with conspiracy, mail fraud, wire fraud and money laundering. According to prosecutors, Steinger and Steiner, the two co-founders of Mutual Benefits Corp. and McNerney and Livoti, two attorneys associated with the company, falsely promised investors "safe" and "secure" investments, improperly acquired insurance policies, mismanaged escrow accounts and pressured doctors to "rubber-stamp" false life expectancy figures, among other things. They promised investors fixed returns ranging from 12% to 72%. The SEC ceased operations of Mutual Benefits through an emergency action in May 2004. In addition to the individuals and Mutual Benefits Corp. listed above, the SEC action froze the operations and assets of the following related entities: Viatical Benefactors, LLC, Viatical Services, Inc., Kensington Management, Inc., Rainy Consulting Corp., Twin Groves Investments, Inc., P.J.L. Consulting, Inc, SKS Consulting, Inc. and Camden Consulting, Inc.

We note that Joel Steinger has a prior criminal conviction for wire and mail fraud. Both Steigner and Steiner have extensive regulatory disciplinary histories and there were cease and desist orders against them in at least 5 states.

Read the story here, here and here.

Read the SEC's litigation release here.

Read the SEC's original 2004 litigation release here.

82 Year Old NY Businessman Charged By SEC In $17 Million Ponzi Scheme

Richard S. Piccoli, 82, of Amherst, New York, was charged Thursday by the SEC of operating a Ponzi-scheme investment scam. Piccoli has been charged in a criminal complaint with mail fraud in a scheme that lured predominantly Catholic investors, including a number of priests, to the tune of $17 million in a fraudulent investment. Piccoli offered an investment, ostensibly discounted mortgage instruments that earned up to 8.3 percent, through his company, Gen-See Capital Corp., based in Williamsville, NY, according to the complaint. Authorities claim that Piccoli took in more than $17 million from more than 250 investors since 2004, using new investment funds to pay off old investors and diverting some $600,000 to himself and his children. He faces up to 20 years in prison, plus a fine of up to $250,000 and restitution.

Read the story here, here and here.

Read the SEC's litigation release here.

Pennsylvania Fund Manager Accused By SEC Of Running A $50 Million Ponzi Scheme

Joseph S. Forte, 53, of Broomall, Pennsylvania and a Philadelphia-based fund manager, was accused by the SEC today with operating a $50 million Ponzi scheme by paying earlier investors with more recent investor funds. The SEC complaint claims Forte's scheme - luring investors in fraudulent futures contracts via his investment vehicle, Joseph Forte, L.P. , has operated since at least 1995. It further stated that Forte had admitted to that he had been conducting the Ponzi scheme and that he did not have the funds to repay investors. The SEC action ordered a cessation of all operations and freezes all assets connected to Forte's enterprise.

Read the story here and here.

Read the SEC's litigation release here.

Read the SEC's complaint here.

Former Pennsylvania Ambulance Exec Charged With Embezzling $100+K

Roy A. Dulaney, 50, of Sharon, Pennsylvania and the former president of Shenango Valley Area Ambulance, was arrested over the weekend after having been charged with embezzling $115,599 from the company. Dulaney reportedly used his company credit card and made numerous unauthorized ATM cash withdrawals over a 2 year period. When the improper expenditures came to light, company directors authorized an audit which produced a report in November, resulting in Dulaney getting fired. According to company officials, Dulaney claimed he had a gambling problem.

Read the story here and here.

California Sheriff Sergeant's Wife Arrested On $832K Embezzlement Charge

Kimberly Sue Sziraki, 44, of Atwater, California and the wife of Merced County Sheriff Department's Sgt. Steve Sziraki, was arrested yesterday on suspicion she had embezzled $832,000 from her employer, Central Valley Processing, a nut processing company. Investigators say the thefts mostly occurred in 2006 and 2007. Sziraki was a manager at the company and had access to all of the company's financial systems, according to reports. She was able intercept checks and transfer funds to her own accounts. The thefts came to light after a broker had contacted the company and complained that they had not been paid.

Read the story here.

Arizona Woman Arrested For Embezzling $200K From Charity

Rosalie M. Magana, 60, of Phoenix, Arizona was arrested Monday on charges she embezzled nearly $200,000 from the social services agency she worked for in South Phoenix. Magana was indicted on three counts of theft and one count of fraud for stealing checks intended for Friendly House in late 2006 and early 2007. Three checks from the Arizona Department of Economic Security totalling $198,000 went missing, triggering the investigation. Magana worked in the accounting department for the agency. Two other individuals have been arrested and indicted and have plead guilty in the conspiracy for their role in cashing some of the checks. They are: Julie Ann Perez, 47 and Virginia Ilsa Kathleen Tudor, 22, both of Phoenix.

Read the story here.

As we have previously stated, non-profit organizations are often victims of this kind of white collar crime simply because they lack the controls and proper staffing.

Massachusetts Woman Indicted In $1.2 Million Embezzlement Case

Tracy Sutley, 38, of Lynn, Massachusetts, was indicted yesterday on charges she allegedly embezzled from her employer, Weir Valves & Controls. Sutley was indicted on 15 counts, including 2 counts of "uttering a forged instrument" and 13 counts of larceny of property over $250. Sutley worked in the company's accounting department, according to reports and the thefts occurred over a 7 1/2 year period until last September. Prosecutors claim she used 13 different schemes to steal from her employer, but was essentially able to write herself or her personal vendors and credit cards, checks over the years to the tune of some $1.2 million. Sutley, who was originally arrested in October is currently in custody, having had her bail increased when it was learned she obtained a new passport and had been researching countries with limited extradition laws back to the U.S. We note that Sutley has a prior criminal history: In 1999 she was found guilty of stealing more than $11,000 from elderly residents of Grosvenor Park Nursing Home in Salem, Mass.

Read the story here, here and here.

A prior history of defalcation is a good indicator that someone will do it again. It is always important to thoroughly vet anyone who has fiduciary responsibilities. See our article on due diligence here.

Skilling's Conviction Upheld On Appeal; Sentencing Reordered For Former Enron Exec

Jeffrey Skilling, the former CEO of Enron, has had his conviction upheld by the U.S. Court of Appeals in New Orleans on Tuesday. However, he has been ordered for re-sentencing. Commentators believe his 27-year prison term will not likely change much. Skilling was convicted on 19 counts of fraud, conspiracy, insider trading and making false statements to investigators. He and Kenneth Lay, former Enron Chairman, were accused of defrauding investors and employees by concealing the true financial status of the company, which collapsed and filed for bankruptcy in 2001.

Read the story here and here.

Virginia Woman, Former Exec Of Investment Company, Pleads Guilty In $132 Million Fraud

Lara Coleman, 40, of Richmond,VA, the former Chief Operating Officer of Investment Properties of America, pleaded guilty yesterday to a superseding indictment for her role in a scheme to defraud investors out of some $132 million. Specifically, Coleman plead guilty to conspiracy to commit mail and wire fraud and making a material false statement to federal investigators. Coleman and Edward H. Okun, 57, the owner of Investment Properties of America and The 1031 Tax Group LLP, were originally charged with bilking clients out of funds ostensibly held in trust by the 1031 Tax Group entity. The scheme went on between August 2005 and April 2007 whereby clients were led to believe their investment funds were to be held in the trust only but instead were diverted for Coleman and Okun's own purposes. Okun was originally arrested and charged in March 2008 with mail fraud, "bulk cash smuggling" and making false statements.

Read the story here and here.

Read the superseding indictment here.

Georgia Investment Advisor

Frederick J. Barton, 48, an investment advisor based in Atlanta, Georgia, was arrested Monday for defrauding his clients to the tune of at least $3 million, including an Alzheimer's patient who lost $1 million. Barton was charged with wire fraud, mail fraud and securities fraud for allegedly diverting client investment funds to himself. The fraud occurred between 2001 and 2007 and also involved the fraudulent sale of shares in his own investment advisory firms, Barton Asset Management LLC and TwinSpan Capital Management, LLC. Barton reportedly set up his own business after being fired from A.G. Edwards & Sons, where he worked as a manager.

Read the story here, here and here.

Read the SEC litigation release here.

World's Biggest Frauds

Rediff.com, published from India, put together an interesting set of profiles for what they consider to be the world's biggest fraud artists. They include the following:

Charles Ponzi: 1920s schemer who bilked investors with promises of great returns offering "foreign postage coupons." He owed investors some $28 million in 1920 when the scheme collapsed (a very significant amount of money back then). Ponzi is profiled in Marquet International's White Collar Rogue's Gallery here.

Bernard Madoff: current hedge fund Ponzi schemer who has reportedly caused losses exceeding $50 million. He is the next candidate for the White Collar Rogue's Gallery. Until then, see FraudTalk's list of Madoff victims here.

Jerome Kerviel: rogue trader at French bank, Societe Generale, who lost a reported 5 billion euros by making fake trades in European stock derivatives in 2006 and 2007.

Reed Eliot Slatkin: co-founder of EarthLink, an internet service provider based in Atlanta which turned out to be nothing more than a Ponzi scheme too. Slatkin raised nearly $600 million from investors of which nearly half was lost. He's another prime candidate for the White Collar Rogue's Gallery.

Brian Hunter: Canadian natural gas trader for Amaranth Advisors, a $9 billion hedge fund which collapsed in 2006 on $6 billion in losses from his trades. He got a $30 million fine from FERC for manipulating natural gas prices in 2006.

Giancarlo Paretti: Italian businessman and sometime film industry mogul. Paretti's Pathe Studios purchased Cannon Film Group and MGM, and later was acquired by Chargeurs in 1999. However, Paretti was accused of bilking the companies for his own benefit, living extremely lavishly, for reported losses of $5 billion.

John Meriwether: founder of the now defunct Long Term Capital Management, the original tiger hedge fund that collapsed in 1998 with $4 billion in losses.

Nick Leeson: rogue derivatives trader in Asia who bankrupted UK-based Barings Bank in 1995 with $1.7 billion in losses.

Yasuo Hamanaka: rogue copper trader at Japan's Sumitomo Corporation, responsible for $2.6 billion in losses when he tried to corner the copper market in 1996, but bet the wrong way.

The Wall Street Journal published their own list a year ago before the Madoff affair became known. In addition to Kervial at Societe General, Hunter at Amaranth, Nick Leeson at Barings and Yasuo Hamanaka at Sumitomo, the Journal's list includes:

BCCI (1991 with $16 billion in losses);

Allied Irish Bank (2002 with $691 million in losses);

Joseph Jett: rogue trader at Kidder Peabody (1994 with $350 million in losses);

We might also include a number of the members of the White Collar Rogue's Gallery, including:

Bernie Ebbers: former Worldcom CEO ($11 billion financial statement fraud)

Cendant Corp. ($3 billion financial statement fraud)

Enron ($62 billion in losses to investors)

John Rigas & Adelphia ($2.3 billion in concealed liabilities - looted the company for $100 million)

Richard Scrushy & Healthsouth ($2.7 billion financial statement fraud)

Washington State Man Pleads Guilty In $2.5 Million Embezzlement Conspiracy

Brett M. Smith, 25, of Puyallup, Washington, pleaded guilty today to embezzling some $2.5 million from his employer, Manke Lumber Co., based in Tacoma, Washington. His job involved inspecting, weighing and sending checks for logs delivered to the mill. Smith, along with seven other defendants, including his brother, Bryan M. Smith, 28, also of Puyallup, were indicted in June in the conspiracy. Brett Smith is alleged to have created false records and sent company checks to his co-conspirators for logs that were never delivered. In all, he admitted to paying for 1,500 fraudulent loads of logs worth $2.5 million. Smith must forfeit two BMWs and the proceeds in 2 bank accounts as part of his restitution. 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 the story here, here and here.

Connecticut Bookkeeper Sentenced To 4 Years For Embezzlement & Identity Theft

Linda Lee David, 47, of Derby, Connecticut, was sentenced to 4 years in prison for embezzling more than $200,000 from her employer, Oesse Fine Foods, Inc., of New Haven. David, who worked as Oesse's bookkeeper, was found guilty of forging company checks and obtaining 8 credit cards in the name of Oesse's boss, Oreste Speciale and charging personal expenses and travel. David, who originally was indicted on 8 counts of bank fraud in March 2008, plead guilty to aggravated identity theft, was also ordered to pay restitution in the amount of $209,373.08. When the thefts occurred between December 2005 and February 2008, David was still on supervised release after a 2005 conviction for wire fraud. She served as the bookkeeper for the Black Rock Yacht Club in Bridgeport and had obtained a credit card in a co-worker's name, racking up more than $11,000 in charges before being caught.

Read the story here and here.

Read the DOJ press release here.

Read the original DOJ press release of David's indictment here.

Prior criminal history involving fraud and identity theft should disqualify anyone from being placed in an fiduciary capacity. Oesse obviously had not done a criminal background check on this woman.

Massachusetts Man Pleads Guilty To Conspiracy To Defraud His Employer

Chin Yaw Tiew, 41, of Westford, Massachusetts, pleaded guilty to attempting to defraud his employer, Nortel Networks, Inc. of Billerica, Mass, out of computer and telephone equipment. He was charged with conspiring with two other Nortel employees, Rimba B. Handojo, 24, also of Westford, and another unidentified employee based in Malaysia, to steal the equipment, ship it to Malaysia and resell it there. Tiew plead guilty to one count of mail fraud. He is due to be sentenced on March 18 and faces up to 20 years in prison, plus a fine of $250,000 and restitution. Handojo was arrested last June and charged with multiple counts of wire fraud, conspiracy and tax evasion in the theft of more than $250,000 worth of equipment from Nortel that was resold in other markets.

Read the story here and here.

Read the DOJ announcement here.

Read the DOJ announcement of Handojo's arrest here.

Update On Fabian Fraud Case: He Files For Bankruptcy

Alan B. Fabian, 44, the Maryland-based entrepreneur and philanthropist sentenced to more than 9 years in prison for defrauding investors of some $40 million, has filed for bankruptcy. The petition lists $52 million in debts and only $3.7 million in assets.

Read FraudTalk's original post on this story here.

Read the story here.

Indiana Arts Society Clean Out Of All Its Cash - Former Assistant Treasurer Suspected Of Embezzlement

The Penrod Society, an art funding institution based in Indianapolis, Indiana, was robbed of some $380,000 it has been reported. Brandon Benker, the assistant treasurer of the organization is reportedly being investigated for the crime. His attorney, Jim Voyles, has acknowledged that Benker stole the case because he apparently had a gambling problem. There have been no charges filed yet and the case is ongoing. The Penrod Society, a 42 year old all volunteer organization, has been all but wiped out of its cash on hand.

Read the statement of Penrod's president, James Art here.

Read the story here, here and here.

High School Secretary In Connecticut Busted For $100K Embezzlement

Susan Catin, 57, of Thomaston, Connecticut, was arrested Friday on charges she embezzled some $100,000 from Amity High School in Woodbridge, where she worked as a secretary. Police say Catin took cash and altered checks from athletic and drama events so she could deposit them into her own accounts. She has been charged with first degree larceny and 37 counts of third degree forgery. The thefts allegedly occurred over a 2 year period. The thefts were uncovered after a year book vendor notified the school administration that one of its checks had been altered.

Read the story here.

Mother & Daughter In Pennsylvania Charged With Embezzling $700+K In Bingo Proceeds From Fire House

Carol Gamble, 46, of West Pittston and her mother, Catherine Drago, 77, of Forty Fort, Pennsylvania, were charged today with embezzling $734,738 in bingo proceeds from Swoyersville Volunteer Hose Co. No. 1 where they served as officers. The thefts occurred over a 3 year period, according to police. Gamble served as the treasurer and Drago as the president of the fire house. Drago reportedly has a gambling habit and Gamble and her husband were reportedly living well beyond their means. This case was investigated by the State Bureau of Charitable Organizations after Gabmble submitted incomplete documentation in 2005. It is reported to be the largest embezzlement case in Luzerne County's history.

Read the story here and here.

Obviously no checks and balances there.

Latest Update On California Embezzlement Case

Louis Anthony Contreras who is accused of embezzling at least $700,000 from his former employer, Tracy Material Recovery Facility and Transfer Station, reportedly spent the money on lavish travel, fancy meals and high priced escorts, according to testimony from the case. Contreras' boss, Mike Repetto, the CEO of the company, discovered the thefts and caught Contreras on video, tearing up receipts and pocketing cash. The embezzlement reportedly went on for 12 years.

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

Pennsylvania Woman Sentenced Up To 5 1/2 Years For Embezzling $160K

Charise A. Henry, 41, of Columbus Township, Pennsylvania, was sentenced today to between 17 and 66 months in prison for embezzling $160,641.09 from her employer, Stone Consulting, now known as Transystems. Henry was also ordered to pay restitution in that amount. She had been was charged with theft by deception and record tampering, both felonies. Henry worked as the accountant for the company and forged checks which she deposited in her own accounts, according to prosecutors. We note that Henry had a prior charge of petty larceny in New York.

Read the story here and here.

Update On Dane Cook Embezzlement Case: Half Brother Pleads Not Guilty

Darryl McCauley (pictured here), the half brother former manager of comedian/actor Dane Cook, who is accused of embezzling at least $3 million, has pleaded not guilty to the charges. Read FraudTalk's original post on this story here. Authorities raided McCauley's Maine home and found $800,000 in cash, according to reports. He allegedly used some of the funds to purchase luxury vehicles and for travel. Authorities said that Cook had suspected McCauley of stealing from him "for some time" and has hired a new manager.

Read the story here.

Iowa Woman Sentenced To 15 Months Prison For Casino Embezzlement

Elaine Provost, 58, of Sioux City, Iowa, was sentenced Tuesday to 15 months in prison for embezzling more than $150,000 from the Casino Omaha in Onawa, Iowa where she worked as a money cage manager. Provost was also ordered to pay restitution in the amount of $152,425. She had plead guilty in October to stealing the money and altering the paperwork to cover her tracks. The thefts occurred between 2002 and 2004, according to prosecutors.

Read the story here, here and here.

Happy New Year!