Tuesday, March 2, 2010

CFO Of Pennsylvania Development Company Charged In $6.3 Million Embezzlement Scheme

Michael G. Spada, 50, of East Norriton, Pennsylvania, was charged with embezzling $6.3 million from Scannapieco Development Corp., a local real estate development company for whom he had served as chief financial officer. Prosecutors allege that over the course of nine years, from September 2000 until he was fired in May 2009, Spada diverted monies from company accounts and the personal accounts of Scannapieco's founder, Tom Scannapieco, for his own benefit. Spada has been charged with wire fraud, bank fraud, filing a false tax return and making a false statement to the federal government. Spada had been employed by Scannapieco Development for 23 years, according to reports. Spada took at least $400,000 in unauthorized salary as well as diverted more than 100 company checks to his own accounts.

Read the story here and here.

Update (9/28/10): Spada was sentenced yesterday to six years in prison.

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