Thursday, December 16, 2010

Former Municipal Adjuster In Texas Pleads Guilty To Embezzling Nearly $2 Million

Patricia A. Leathers, 62, of Garland, Texas, pleaded guilty charges she embezzled at least $1.9 million from the City of Garland where she had served as municipal adjuster. According to prosecutors, Leathers, who handled third-party liability claims against the city, submitted fraudulent claims for payments to herself and to third parties which then then collected or shared the proceeds over a period of more than 14 years, from January 1994 until March 2008. One of Leathers' co-conspirators was her sister, Connie M. Powell, 59, who plead guilty for her part in the conspiracy earlier this month. Some of the funds Leathers misappropriated were federally granted. Leathers is scheduled to be sentenced on March 18, 2011.

Read the story here and here.

Update (12/30/10): Leathers pleaded guilty today to charges she embezzled some $1.9 million from the City of Garland, Texas. Sentencing is scheduled for March 18, 2011. She faces up to 5 years in prison.

Update (2/3/12): Two other conspirators in this case, Kenneth Wayne Brown, 50, and his wife, Leah Michele Brown, 46, were found guilty of participating in this embezzlement conspiracy.  They are due to be sentenced on May 18, 2012. The Browns reportedly cashed in checks written to themselves from the City of Garland coffers.

Update (5/18/12): Kenneth Wayne Brown was sentenced to 3 1/2 years in prison and Leah Michele Brown was sentenced to nearly 3 years in prison.  Each was also ordered to pay restitution of $300,000 and $142,000, respectively.

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