Thursday, November 4, 2010

Maryland Man Pleads Guilty To $370K Embezzlement Scheme

Timothy C. Kany, Sr., 49, of Bel Air, Maryland, pleaded guilty to charges he embezzled more than $370,000 from K-Line America, an ocean cargo company, where he had been employed as a manager with day to day oversight responsibility, including invoice approvals. According to prosecutors, Kany created two phony companies, Pawl’s Port Services and Bayview Ship Service, then submitted fraudulent invoices from these entities which he approved and received payment. The scheme spanned a period of 9 years, from 2000 until 2009 and included more than 1,400 fraudulent invoices totalling $270,488.25. Interestingly, Kany's administrative assistant, Kriste Lynn Ferrell, 38, also of Bel Air, Maryland, reportedly discovered his scheme in 2003, but was convinced to participate in a similar scheme by Kany. She set up a phony entity, Chesapeake Cargo Services, and submitted some 620 false invoices totalling $225,921.35, but paid actual vendors from the ill-gotten proceeds, netting herself a total of $100,894.95, which she split with Kany. He has plead guilty to mail fraud charges and must pay restitution in the amount of $371,383.21. Ferrell also recently plead guilty. Read the story here and here. Read the DOJ announcement here. Update (4/18/11): Kany, 49, was sentenced to 2 years in prison. Ferrell, now 39, was sentenced to three years probation for her part in a scheme to embezzle more than $370,000 from K-Line America. They were both ordered to pay restitution as well.

No comments: