Thursday, December 29, 2011

Former California Resident Arrested For Embezzling $100K From Restaurant

Michelle Marie Mendizabal, 38, recently of Lake Elsinore, California has been arrested in Arizona and is awaiting extradition on charges she embezzled more than $100,000 from Tom’s Farms Old Fashioned Hamburgers where she had been employed as manager.  The misappropriations spanned as long as 8 years, according to authorities.  Mendizabal reportedly fled to Arizona to avoid prosecution in October.

Read the story here and here.

Read the Sheriff's release here.

Update (6/30/12): Mendizabal has pleaded guilty to embezzling what is now understood to be more than $200,000 from Tom’s Farms Old Fashioned Hamburgers. 

Church Secretary In Wisconsin Charged With Embezzling $217K

Darlene Vodvarka, 57, of Oak Creek, Wisconsin has been charged with embezzling $217,483 from the St. Matthew Catholic Church where she had served as church secretary.  Authorities allege that over a 7 year period, from June 2004 through June 2011, Vodvarka took cash and check receipts from proceeds generated from "scrip" sales - gift cards and the like.  Authorities also allege that Vodvarka attempted to conceal the fraud by falsifying the church's books.  Specifically, Vodvarka has been charged with two counts of felony theft of more than $10,000.  She had been church secretary for 14 years.

Read the story herehere and here.

Hat tip: FraudTalk reader Joe.

Update (3/1/12): Vodvarka is now being sued in civil court by St. Matthew Catholic Church of Oak Creek, Wisconsin, along with her husband, Edward Vodvarka, alleging fraud, theft, conversion and unjust enrichment.  The suit is seeking recovery of what the church alleges is more than $400,000.  The embezzlement is now believed to date back to at least 2000.  Vodvarka plead guilty last month in the criminal case and is scheduled to be sentenced on March 20, 2012.

Update (3/20/12): Vodvarka has been sentenced to 3 years in prison after pleading guilty last month to two charges of felony theft.

California Woman Pleads Guilty To Embezzling $100K From Dental Office

Deborah Lynn Kessler, 45, of Canyon Lake, California has pleaded guilty to charges she embezzled more than $100,000 from Todd Engel's dentistry office for which she had been employed as office manager.  Kessler is believed to have forged dental insurance payment checks received by the practice for her own benefit.  She was originally charged with suspicion of forgery and grand theft.

Read the story here and here.

Michigan Man Accused Of Embezzling Nearly $1 Million

Ralph Edward Staelgraeve, 45, of Conway Township, Michigan, has been accused of embezzling nearly $1 million from Pasta Per Trio where he had been employed as director of Michigan operations.  Authorities allege that Staelgraeve siphoned funds from the company by cashing rebate checks, among other schemes.  Staelgraeve allegedly spent more than $300,000 at the casino.  An investigation has been proceeding for the past 2 years which is purported to prove that Staelgraeve stole at least $700,000, although the sum is believed to be closer to $1 million.

Friday, December 23, 2011

Happy Holidays From FraudTalk

Dear FraudTalk Readers:

Best wishes for a happy holiday season and a prosperous New Year!

Thursday, December 22, 2011

Federal Grand Jury Considering Indictment In $500K Embezzlement In Vermont

A federal grand jury is considering an indictment in an alleged $500,000 embezzlement case involving Brault’s Mobile Homes Inc., which reported the case to authorities last spring.  No indictment has been issued and a suspect has not yet been publicly disclosed.  This is yet another major embezzlement case in Vermont which has been plagued by a series of these frauds in the past several years, in spite of its relatively small population and economy. 

Read the story here.

Read this article in the Burlington Free Press entitled, Private firms, auditors watching, but not seeing" with regard to the spate of embezzlement cases in Vermont in recent years.

FraudTalk has chronicled 14 major embezzlement cases in Vermont in the past 2 1/2 years.

California Woman Charged With Embezzling More Than $100K From Nuns

Linda Gomez, 65, of Sunnyvale, California, has been charged with embezzling more than $100,000 from the Sisters of the Holy Names Convent where she had been employed as food services director.  According to authorities, over a period of about 2 1/2 years, from March 2008 through May 2010, Gomez used convent credit cards to make personal purchases of goods, some of which she returned for cash refunds. 

Read the story here.

Alabama Man Pleads Guilty To Embezzling Nearly $100K From Union

Graven LeeVon Townsend, 51, of Millbrook, Alabama has pleaded guilty to embezzling nearly $100,000 from the Steelworkers Local 462 where he had served as secretary-treasurer.  According to authorities, over a period of about 3 years, from 2006 until September 2009, Townsend wrote at least 149 checks totaling $98,970 from the union payable to himself or to cash for his own benefit.

Read the story here and here.

Connecticut Woman Pleads Guity To Embezzling More Than $1.5 Million

Joanne Topolski Osmolik, 51, of Newtown, Connecticut, has pleaded guilty to charges she embezzled more than $1.5 million from Latex International, where she had been employed as vice president for human resources.  According to prosecutors, Osmolik and a co-worker used corporate credit cards for personal expenditures over an unspecified period of time, then covered it up with fraudulent expense reports.  As part of her plea agreement, Osmolik must forfeit her stake in three residential properties in Vermont, six motorcycles, four snowmobiles and jewelry.  She is due to be sentenced in March 2012.  Osmolik had been employed by Latex International for six years in various HR capacities, according to her LinkedIn profile

Read the story here and here.

Hat tip: FraudTalk reader Joe.

Update (2/29/12): Former Latex International CEO Kevin Coleman, 51, pleaded guilty to charges he embezzlement more than $1.7 million from the company over a period of 5 years, from November 2005 through December 2010.  Coleman and Osmolik apparently colluded to fleece the company in a brazen manner.  Coleman reportedly used some of the ill-gotten gains to buy diamonds and Harley-Davidson paraphernalia.

Update (4/25/12): Osmolik, now 52, has been sentenced to 48 months in prison for embezzling what is now believed to be $1,777,791 from Latex International.

Update (7/12/12): Coleman was sentenced to nearly 6 years in prison for his role in fleecing Latex International out of $1.7 million to finance "an absurdly extravagant lifestyle."

Wisconsin Woman Accused Of Embezzling $100K

Christine Swan, 48, of Rhinelander, Wisconsin, who has been accused of embezzling more than $100,000 from Crossroads USA, a local auto dealership, is reportedly seeking a plea agreement with prosecutors.  According to authorities, Swan, who was employed as office manager for the dealership, created phony inventories to obtain loans from M&I Bank which she converted to her own benefit.  She has been charged with one felony count of fraud against a financial institution.

Read the story here and here.

Update (2/21/12): Swan pleaded no contest and has been convicted of a Class H felony as a consequence.  She faces up to 3 1/2 years in prison, plus restitution.

Massachusetts Woman Sentenced For Embezzling $350K To Finance Lifestyle

Margaret Connor, 56, of Marlborough, Massachusetts, has been sentenced to one year in jail for embezzling about $350,000 from a local medical practice where she had been employed as office manager.  According to authorities, Connor wrote more than 150 checks from company accounts for her own benefit and subsequently made false bookkeeping entries in an attempt to conceal the misappropriations.  Connor reportedly used the stolen money to finance her lifestyle including to pay for personal travel, dining, clothing, furniture, jewelry and her mortgage and utility bills, among other things.  Connor has also been ordered to pay $350,000 in restitution and will serve 10 years probation following her jail time.  Connor, who was originally indicted in March 2011, pleaded guilty to charges of larceny over $250 by continuous scheme and false entries in corporate books.

Read the story here and here.

Hat tip: FraudTalk reader Joe.

California Man Pleads Is Sentenced For Embezzling $825K From Travel Companies To Support Lavish Lifestyle

Jeremy Kealoha Belisario, 38, formerly of Irvine, California, has pleaded guilty to charges he embezzled some $825,000 from two travel companies he had worked for as travel manager, including TravelCorp USA and another unnamed family own travel business.  Belisario was subsequently sentenced to 12 years in state prison and ordered to pay restitution and fines of more than $2.6 million.   Authorities alleged that between June 2006 and March 2008, Belisario made numerous fraudulent purchases with company credit accounts for luxury travel and to purchase personal luxury items, among other things.  Meanwhile, the small family run travel business, which he hit for $800,000, was forced to lay off 15 employees and cut pay for the remainder in order to survive.  Belisario pleaded guilty to grand theft by an employee and fraudulently using an access card, two counts of grand theft, two counts of identity theft, two counts of acquiring access card information without permission, one count of embezzlement by an employee, and admitted to sentencing enhancements for aggravated white-collar crime of more than $500,000 and property damage of more than $150,000.

Read the story here and here.

Tennessee Woman Indicted On Charges She Embezzled More Than $1.5 Million

Karen Little-Tripp, believed to be 47, of Eads, Tennessee, has been indicted on one count of Bank Fraud in connection with an alleged embezzlement scheme that netted more than $1.5 million from Seiler-Nabors Construction Company where she had been employed as a bookkeeper.  According to prosecutors, over a period of as much as five years, Tripp wrote numerous checks from company accounts for her own benefit to support a lavish lifestyle.  Meanwhile, the company struggled financially, laying off more than 20 employees before filing for bankruptcy.  Trip also funnelled company money into her antiques business, Town Square Antiques, according to reports. 

Read the story here and here.

Update (5/7/12): Little-Tripp has pleaded guilty to embezzling $1.5 million from Seiler-Nabors Construction Company where she had been employed over a 4 year period as a bookkeeper.

Louisiana Woman Accused Of Embezzling $130K From School Board Association

Doris Flemming Butler, 49, of East Baton Rouge, Louisiana, has been accused of embezzling more than $130,000 from the Louisiana School Board Association where she had been employed.  Details of the investigation have yet to be released.  However, an audit revealed that over a 7 year period, from 2003 until 2011, some $130,212.89 was misappropriated. 

Developing...

Read the story here.

Hat tip: FraudTalk reader Joe.

Wednesday, December 21, 2011

Woman Sentenced For Embezzling More Than $166K From Minnesota Real Estate Concern

Kathleen Cicmil, 56, formerly of Hibbing, Minnesota and currently of Palm Desert, California, has been sentenced to 21 months in state prison for embezzling $166,219.12 from Perrella and Associates, a real estate and appraisal service where she had been employed as a bookkeeper.  According to authorities, over a period of four years, from 2005 to 2009, Cicmil siphoned funds from the company.  Nevertheless, she is believed to have embezzled more than $300,000 from the firm from between 1998 and 2009, but the statute of limitations did not allow for the entire loss to be included.  Cicmil had been employed by the firm for 18 years.   She was also ordered to pay restitution.  Cicmil was originally charged in December 2009 and plead guilty last month to one count of theft by swindle. 

Read the story herehere and here.

Former Bank Officer In Missouri Sentenced For Embezzling More Than $450K

Troy W. Posten, 42, of Crocker, Missouri, was sentenced to 40 months in federal prison for embezzling $451,763.46 from the Bank of Crocker where he had been employed as a loan officer.  According to authorities, over a period of 4 years, from May 2004 until May 2008, Posten fraudulently obtained loans, lines of credit, and funds from bank customers’ accounts without their knowledge or approval.  Posten reportedly used the misappropriated funds for his own benefit, including paying off personal loans and obligations.  He pleaded guilty to one count of bank fraud last July.  Posten, who is reportedly a former Richland school board member, has also been barred from working in the financial services industry.

Read the story here and here.

Pennsylvania Woman Charged With Embezzling $186K From Orchestra

Phyllis Ann (LoPresti) Shoff, 55, formerly of Dover Township, Pennsylvania and currently of Cumberland, Pennsylvania has been charged with embezzling about $186,000 from the York Symphony Orchestra where she had been employed as office manager.  According to authorities, over a period of nearly 4 years, from July 2007 to May 2011, Shoff used several different schemes to siphon funds from the orchestra for her own benefit.  She is believed to have issued checks to her own benefit, among other means of theft.  Shoff reportedly used the misappropriated funds to support a gambling problem.  She has been charged with five counts of theft by deception and two counts of access device fraud.  Shoff had been the office manager for the York Symphony Orchestra for about 8 years. 

Read the story here and here.

Update (4/6/12): Shoff, now 56, has pleaded guilty to more than what is now understood to be $200,000 from the York Symphony Orchestra. 

Wednesday, December 14, 2011

Washington State Man Sentenced For Embezzling More Than $165K

Ricky L. Bryant, 53, of Wenatchee, Washington, has been sentenced to 24 months in prison for embezzling more than $165,000 from Blind Renaissance Design in East Wenatchee, Washington, where he had been employed as a part-time bookkeeper.  According to authorities, over the course of about 7 years, from 2004 until the spring of 2011, Bryant wrote checks to himself from company accounts and altered the books in an effort to cover up his thefts.  Bryant, who was originally charged with first degree theft last April and plead guilty in October, faces up to 10 years in prison.  The company reportedly sued Bryant in civil court to recoup the losses, but he filed for bankruptcy over the summer.

Read the story here and here.

Hat tip: FraudTalk reader Joe.

Former Municipal Golf Director In Tennessee Pleads Guilty To Embezzling Nearly $100K

Faye Randolph, 48, of Pigeon Forge, Tennessee, has pleaded guilty to charges she embezzled nearly $100,000 from the Eagle's Landing Golf Club in Sevierville where she had served as director.  According to authorities, over the course of more than 2 years, from at least January 1, 2008 to March 14, 2010, Randolph siphoned funds from the golf course by creating fictitious refunds for golf rounds and pocketing the cash.  She pleaded guilty to official misconduct, destroying and tampering with governmental records and theft of more than $60,000.  Rudolph, who was originally indicted last January, will be sentenced next April and faces at least 8 years in prison.

Read the story here, here and here.

Tuesday, December 13, 2011

North Carolina Woman - Wife Of County Judge - Sentenced For Embezzling $102K From Law Firm Client

Susanne Marie Crotty, 44, of Arden, North Carolina, was sentenced to 4 months in prison for embezzling $102,000 from an elderly client of The Van Winkle Law Firm where she had been employed as a legal assistant.  Crotty is the wife of Buncombe County district court judge Edwin D. Clontz.  Crotty had pleaded guilty to felony charges of embezzlement, financial card fraud, obtaining property by false pretense, and writing and using forged checks.  Crotty has also been ordered to pay restitution in the amount of $26,460 since the bulk of the loss was covered by insurance.

Read the story here.

Virginia Couple Accused Of Embezzling $2.5 Million From Real Estate Concern

Terri Lynn Nagy-Phillips, 40, and her husband, Craig Phillips, 41, both of Portsmouth, Virginia, have been arrested and charged with embezzling about $2.5 million from Continental Realty Service where Terri Nagy-Phillips had been employed.  According to authorities, over a period of nearly 4 years, from at least January 2007 through October 2011, Nagy-Phillips siphoned funds from company accounts through a series of unauthorized credit card and other transactions.  She has been charged with Embezzlement, Credit Card Fraud, and Conspiracy to Commit a Felony.  Craig Phillips has been charged with Embezzlement and Conspiracy to Commit a Felony.  Police executed a search warrant and successfully recovered numerous luxury items including including seven luxury vehicles, jewelry, a Harley Davidson motorcycle and one trailer.

Read the story here and here.

Update (7/13/12): Terri Lynn Nagy-Phillips and Craig Phillips entered guilty pleas to one count each of conspiracy and wire fraud for embezzling what is now believed to be about $2.8 million.  According to authorities, the couple caused $2.3 million in company checks to be deposited in the Phillips' bank accounts or written to businesses to pay for goods and services bought by the couple. They also executed fraudulent wire transactions to pay for more than $500,000 in unauthorized charges to the company's credit card.

Monday, December 12, 2011

Calfornia Woman Pleads Guilty To Embezzling $185K From Engineering Firm

Alexis Ann Pate, 34, of Camarillo, California, has pleaded guilty to charges she embezzled more than $184,000 from M3 Civil Inc., a local engineering firm where she had been employed as office manager.  According to authorities, over a period of nearly 6 years, from April 2005 to January 2011, Pate misappropriated funds from the firm.  Specifically, Pate pleaded guilty to three counts of felony grand theft. 

Read the story here.

Read the DA's announcement here.

Oklahoma Woman Sentenced In $1 Million Embezzlement Case

Pamela J. Whitson, 59, of Norman, Oklahoma, has been sentenced to 30 months in prison for embezzling nearly $1 million from Robert L. Scott Oil & Gas Exploration where she had been employed as office manager.  According to authorities, over a period of six years, from 2002 to 2008, Whitson siphoned funds from the company by executing fraudulent checks for her own benefit.  Media reports suggest that Whitson spent much of the ill-gotten gains at local casinos.  Whitson was also ordered to pay $965,000 in restitution and $252,000 to the IRS on back taxes from the stolen funds.

Read the story here.

Read the DOJ announcement here.

Michigan Woman Accused Of Embezzling $436K From Funeral Home

Erica Cederberg Kaznowski, 41, of Bay City, Michigan, has been charged with embezzling at least $436,000 from pre-paid receipts and insurance premiums for funeral services of clients of Stapish-Cederberg Funeral Homes where she had been employed as business manager.  According to authorities, over a six and a half year period, from January 2005 through June 2011, Kaznowski converted pre-payments and insurance premium payments for her own benefit instead of escrowing them as required.  Kaznowski has been charged with one count of racketeering and seven counts of embezzlement. 

Read the story here.

California Woman Accused Of Embezzling $470K From Bookkeeping Clients

Paige Jones Hibbits, 69, recently of Camarillo, California, has been charged with embezzling at least $470,000 from several bookkeeping clients of her business, Jones Hibbits, LLC, including Scarborough Farms Inc. of Oxnard, California.  According to authorities, Hibbits has used a variety of aliases, including Pearl Hibbits, Pearl Klenoski, Pearl Jones, Paige Jones, and Pearl McClelland.  Prosecutors allege that Hibbits executed more than 50 fraudulent transactions, including fraudulent checks and electronic funds transfers for her own benefit over a 2 year period.  Specifically, Hibbits has been charged with felony counts including forgery, money laundering, grand theft, computer fraud and aggravated white collar crime.  Media reports indicate that Hibbits has previous a felony conviction in 2004 for embezzlement and forgery.  She was also arrested in 1990 for assault with a deadly weapon and spent time in state prison.  Ironically, Hibbits was named the Camarillo Chamber of Commerce's Woman of the Year in 2010.

Read the story here.

Texas Man Charged With Embezzling $155K From Louisiana Company

Richard Sharp, 44, of Pearland, Texas, has been charged with embezzling about $155,000 from GDH International of Covington, Louisiana where he was one of the principal shareholders.  Details of the misappropriation have not yet been released.

Developing...

Read the story here, here and here.

Michigan Man Accused Of Embezzling $110K To Finance Lottery Purchases

Steve Sharrard, 47, of Waterford Township, Michigan, has been charged with embezzling some $110,000 from Moote Electric, where he had been employed as a bookkeeper for the past ten years.  According to authorities, Sharrard siphoned the funds by converting cash receipts over the past year.  Authorities believe that much of the misappropriated monies were used to purchase lottery tickets. 

Read the story here.

Virginia Woman Charged With Embezzling More Than $1.2 Million From West Virginia Casino & Racetrack

Anita Ambler, aka Anita Webb, 48, of Reva, Virginia, has been charged with embezzling more than $1.2 million from West Virginia's Mountaineer Casino Racetrack & Resort where she had been employed as a bookkeeper.  According to authorities, over a period of 5 years, from 2005 to 2010, Ambler siphoned funds from the resort by removing cash from the horsemen's account "for her own benefit and use." Ambler also forged checks, made false deposits, and fraudulently issued checks in the names of family members and a business she owned called "Forgotten Farms."  Specifically, Ambler has been charged with 21 counts of mail fraud, 15 counts of wire fraud and six counts of using criminal proceeds for a transaction.

Read the story here and here.

Update (4/29/13): Ambler, now 49, was found guilty by a federal jury of 11 counts of mail fraud, 10 counts of wire fraud and four counts of transacting in criminal proceeds.

2 Former California Municipal Workers Accused In $635K Embezzlement From Mosquito Control Agency

Two California woman, including Joann Seeney, aka JoAnn Dearman, 60, of Pacifica, California and a second, unnamed individual have been accused of embezzling more than $635,000 from the San Mateo County Vector Control District where Seeney had been employed as district finance manager.  Both have been terminated and the former, Seeney, is currently serving a 32 month sentence for a separate embezzlement case involving the theft of some $568,000 in fraudulent credit card charges from a private medical imaging company in Foster City, California, to finance a lavish lifestyle.  Authorities believe the misappropriations from the Vector Control District principally ocurred between 2010 and 2011.  Seeney was also accused of embezzling about $50,000 from yet another company.  Apparently criminal background checks were never conducted on Seeney.

Read the story here, here and here.

Update (12/21/11): The second employee has been identified as Vika Sinipata, 35, a former accounting supervisor for the San Mateo County Vector Control District.  Sinipata was arraigned on Tuesday on eight felony counts of embezzling public money.  She did not enter a plea.

Former Ohio Bank Officer Sentenced For Embezzling $518K

Lisa K. Coon, 52, of Ashville, Ohio, has been sentenced to 2 years in prison for embezzling at least $518,535 from The Citizens Bank of Ashville where she had been employed as a vice president.  According to authorities, over a period of about 6 years, from 2005 and early 2011, Coon executed at least 180 fraudulent transactions including issuing checks and making electronic transfers from customer bank accounts for her own benefit.  Coon also allegedly sent falsified bank statements to depositors to cover up the misappropriations from bank customers.  According to Coon's attorney, Joseph Scott, Coon suffered from a shopping addiction and “was buying things she really didn’t need.”  According to media reports, Coon was a "pillar of the community" involved in a variety of charities and philanthropic activities locally.

Read the story here, here and here.

Rhode Island Woman Charged With Embezzling $198K From Local Marina

Maureen Claire Rondeau, 42, of North Kingston, Rhode Island, has been charged with embezzling about $198,000 from Brewers Wickford Cove Marina where she had been employed as office manager.  According to authorities, over a period of about 2 years, from 2009 to 2011, Rondeau issued at least 75 fraudulent checks from the Marina's coffers for her own benefit.

Read the story here.

Read the police report here.

Hat tip: FraudTalk reader Joe.

Idaho Man Pleads Guilty To Embezzling $429K From Grocery Store

Jasen W. Johnson, 50, of Sandpoint, Idaho, pleaded guilty to charges he embezzled about $429,000 from the Family Foods grocery store in Oldtown, Idaho.  According to authorities, Johnson converted cash receipts over a period of 7 years, from 2002 - 2009.  Johnson was ordered to pay $102,000 in restitution.

Read the story here.

Ohio YMCA Reported Victim Of $100K Embezzlement Scheme

The YMCA of Central Stark County, Ohio, has reported an embezzlement of at least $100,000 from its North Canton Child Care Center by an unnamed employee.  The misappropriation has been reported to local authorities who are investigating the thefts which spanned more than 7 years, from August 2004 through November 2011.

Developing...

Read the story here.

Former Utah Transit Authority Board Member Accused Of Embezzling More Than $2 Million

Terry C. Diehl, 56, of Salt Lake City, Utah, has been accused of embezzling more than $2 million from South Mountain L.C. and GEM/Group Estates Management Inc., two companies for which had served as president.  Diehl and his company, Wasatch Pacific, have been sued in civil court by the companies and their owner, Yoshimitsu Mugishima, accusing him of misappropriating the funds and placing them into a retirement fund for his own benefit.  The funds were part of a 2009 land deal and the transfers made over a three month period in late 2009.

Read the story here.

New Jersey Man Accused Of Embezzling $1.6 Million Via Fraudulent Billing Schemes

George Ortega, 50, of Kinnelon, New Jersey, has been charged with embezzling some $1.6 million from ARGIX Direct, doing business as Passport CFS Logistics where he had been employed.  According to authorities, over a period of at least 8 1/2 years, from January 2003 through May 2011, Ortega employed a variety of fraudulent vendor and billing schemes to siphon funds from the company.  For example, Ortega allegedly created a phony vendor to which fraudulent payments were made.  Another scheme involved co-conspirators at actual vendors who were paid or overpaid for work not performed from which Ortega benefited.  Ortega has been charged with one felony count each of financial facilitation of criminal activity, theft by deception, and misconduct by a corporate official.

Read the story here.

Hat tip: FraudTalk reader Joe.

Former Accountant For Wisconsin Union Expected To Plead Guilty To Embezzling $441K

Sandra E. Jungbluth, 38, of Waukesha, Wisconsin, is expected to plead no contest to charges she embezzled about $441,500 from the Wisconsin Operating Engineers for which she administered funds.  Jungbluth was an accountant with Carday Associates which administered the union's funds.  According to authorities, Jungbluth wrote checks from the union's accounts to herself and a former boyfriend, stamping her boss' name for authorization.  A total of more than 200 fraudulent checks were executed in this manner over a period of about 9 years, beginning in 2002 and continuing until 2011.

Read the story here.

Read the criminal complaint here.

Sunday, December 11, 2011

Pennsylvania Man Charged With Embezzling $127K From Local Cinema

Andrew Tuzzino, 48, of Manheim Township, Pennsylvania, has been arrested and charged with embezzling about $127,000 from the Penn Cinema, where he had been employed as general manager.  According to authorities, over a year and a half period, Tuzzino skimmed funds from the cinema utilizing a scheme involving phony ticket and gift certificate refunds. 

Read the story here which quotes fraud expert Chris Marquet.

Sunday, December 4, 2011

Connecticut Banker From New York Sentenced For Embezzling $673K; Squanders Funds On Gambling

Shawn Reilly, 34, of Congers, New York, was sentenced to 33 months in prison for embezzling $673,447 from UBS Securities, LLC in Stamford, Connecticut where he had served as director of the bank's settlements group.  According to reports, Reilly made 84 fraudulent wire transfers of funds over a period of more than 2 years, from February 2009 to April 2011.  Reilly reportedly used the money to cover gambling losses he incurred online and at casinos in Connecticut, Atlantic City, New Orleans and Las Vegas.  Reilly was also ordered to pay restitution.

Read the story herehere and here.

California Banker Pleads Guilty To Embezzling Nearly $2 Million From Customer Accounts

Matthew J. Walker, 34, of Laguna Hills, California, pleaded guilty to charges he embezzled nearly $2 million from customer accounts at the Farmers & Merchants Bank where he had been employed as vice president.  Walker is reportedly a decendant of C.J. Walker, who founded the bank in 1907 and the son of Daniel Walker, the current president of the bank.  According to authorities, over a period of 16 months, Walker withdrew funds from customer trust accounts and funnelled the money into a failed company called Xoodlz, Inc.  A total of $1,973,000 was reportedly taken in 8 fraudulent transactions.  Walker pleaded guilty to one count of theft of bank funds and faces up to 30 years in prison, plus restitution and fines.

Read the story here and here.

Former Municipal Tax Collector In Connecticut Arrested For Allegedly Embezzling $670K

Karen Guillet, 61, of Oxford, Connnecticut, has been arrested on charges she embezzled more  than $670,000 from the municipality where she had been employed as tax collector.  Authorities allege that over a period of six years, from approximately 2003 through late 2009, Guillet siphoned money from the town by taking tax receipts meant for town coffers and converting them for her own benefit.  Guillet allegedly used an elaborate scheme to pay vendors and other town obligations with new reciepts in an effort to hide her misappropriations.  Specifically, Guillet was charged with one count of first-degree larceny and six counts of first-degree forgery in this matter.  The investigation spanned a two year period and Guillet, who worked as tax collector for 24 years, resigned her position in June 2010, according to media reports.

Read the story here and here.

Hat tip: FraudTalk reader Joe.

Tuesday, November 29, 2011

Arizona Woman Pleads Guilty To Embezzling $425K From Restaurant

Amy Paulette Montano, 40, of Tucson, Arizona, has pleaded guilty to charges she embezzled some $425,000 from Miller Administration, which owns Eegee's restaurant, where she had been employed as an account manager.  According to authorities, Montano admitted she wrote herself checks from company coffers over a period of more than three years in addition to her salary.  She plead guilty to state charges of illegal control of an enterprise and theft.  Montano is due to be sentenced on January 9, 2012. 

Read the story here.

Colorado Woman Accused Of Embezzling $226K

Lisa Dawn Mack, 42, formerly of Garfield County, Colorado and recently of Wolfforth, Texas, has been arrested and charged with embezzling a total of $226,000 from the Valley View Hospital where she had been employed as a bookkeeper and one of its employees.  According to authorities, over a two year period from 2009 to 2011, Mack obtained fraudulent reimbursements from the Hospital, some funnelled through another employee, her daughter-in-law, Donna Michelle Sandel, 25, from whom she also allegedly stole money.  Mack reportedly has a prior arrest for theft in Texas in 1995 and has used a variety of aliases, including, Lisa Dawn Stabeno, Lisa Dawn Crow, Lisa Dawn Forrest, Lisa Stanford Forrest, Lisa Stambeno and Lisa Dawn Stanford.

Read the story here.

Update (6/26/12): Mack, now 43, has pleaded guilty Tuesday to two counts of felony theft in an embezzlement. 

Utah Woman Pleads Guilty To Embezzling $152K From Bank

Carrie Lyn Zenger, 45, of Clearfield, Utah, has pleaded guilty to charges she embezzled about $152,000 from the Intermountain Credit Union where she had been employed.  According to prosecutors, Zenger simply took cash from the bank's vault over a period of nearly 2 years, from January 2007 until October 2008.  Zenger reportedly has a history of personal financial problems, including two bankruptcies in her past.

Developing...

Read the story here.

Monday, November 28, 2011

Former President Of Florida Condo Association Accused Of Embezzling More Than $1 Million

The former president of the Sabal Springs Golf and Raquet Club homeowners association has been accused of embezzling more than $1 million over the course of three years.  The unnamed perpetrator allegedly wrote checks or transferred funds from association coffers to himself or for his own benefit.

Developing...

Read the story here.

Saturday, November 26, 2011

Colorado Man Guilty Of Embezzling $195K From California Construction Company

Thomas Tanke, 67, formerly of El Dorado Hills, California and currently of Monument, Colorado, has been found guilty of embezzling about $195,000 from Azteca Construction Inc., where he had been employed as Vice President of East Coast Operations.  A federal jury found Tanke guilty on two counts of mail fraud and five counts of bank fraud after a 5 day trial.  According to prosecutors, in 2004 when the company and an affiliate were in the process of winding down operations and selling off equipment, Tanke keep receipts and deposited them into his own accounts.  He also use company checks to pay for personal expenses and personal credits, such as his auto loan.  He is due to be sentenced on March 2, 2012. 

Read the story here and here.

Read the DOJ announcement here.

Update (7/6/12): Tanke, now 68, was sentenced to 70 months in prison and ordered to pay $243,403 in restitution. 

Tuesday, November 22, 2011

Connecticut Woman Sentenced For Embezzling More Than $1 Million From Mark Twain House

Donna M. Gregor, 54, of East Hartford, Connecticut, has been sentenced to 42 months in prison for embezzling more than $1 million from the Mark Twain House and Museum where she had been employed as controller.  According to authorities, over a period of 8 years, from 2002 to 2010, Gregor siphoned funds from the non-profit by forging checks for her own benefit, among other things.  Gregor's defense sought leniency since they claimed that Gregor suffered from a condition called "pathological altruism," an irrational compulsion to help others while ignoring the consequences of her behavior.  The judge did not buy that argument.  Gregor was also ordered to pay $1.08 million in restitution, plus $323,480 to the IRS for back taxes, penalties and interest on the stolen money.  Gregor had worked for the Mark Twian House for many years.

Read the story here and here.

Indiana Woman Sentenced For Embezzling More Than $250K From Church

Phyllis Jones, 68, of Petersburg, Indiana, has been sentenced to three years in jail for embezzling more than $250,000 from the Gospel Center Church where she had served as treasurer.  According to authorities, over the course of more than 7 years, from January 2003 to April 2010, Jones issued herself numerous checks from church coffers for her own benefit.  Jones was originally arrested in October 2010 and charged with the theft of $257,000. 

Read the story here and here.

Monday, November 21, 2011

Iowa Woman Pleads Guilty To Embezzling $480K

Stacey Lynne Gross, 38, of Adel, Iowa, pleaded guilty to charges she embezzled at least $480,000 from Data Business Equipment, Inc., where she had been employed as a bookkeeper/office manager in charge of vendor payments.  According to authorities, over a period of about 4 years, from 2007 to 2011, Gross wrote at least 190 unauthorized checks from company coffers for her own benefit.  The checks went to pay for Gross' personal credit card, mortgage and to pay for furniture, jewelry and other personal expenses.  Gross also admitted to making false entries in the company’s books to conceal her embezzlement by entering the name of a real vendor as “payee” in the ledger.  Gross pleaded guilty to felony mail fraud and tax fraud charges and is scheduled to be sentenced on February 17, 2012.  As part of her plea agreement, Gross must also make restitution to Data Business Equipment, Inc.

Read the story here and here.

Hat tip: FraudTalk reader Joe.

Update (2/17/12): Gross was sentenced to 20 months in prison for embezzling what is now believed to be at least $518,000.   She was also ordered to pay full restitution. 

Former Indiana State Trooper Pleads Guilty To Embezzling Nearly $100K

Dallard R. Tackett, 60, of Nappanee, Indiana, a former Indiana State Trooper, has pleaded guilty to charges he embezzled more than $90,000 from state coffers.  According to authorities, Tackett, a former lieutenant with the Indiana State Police who oversaw toll collections, siphoned toll receipts transferring them into his own accounts over a period of about 3 years.  Specifically, Tackett plead guilty to 17 fraud counts and is due to be sentenced in January 2012.  Tackett had been a 31 year veteran of the Indiana State Police.

Read the story herehere and here.

Ohio Man Pleads Guilty To Embezzling $2.3 Million From 2 Companies

Shaun Allen Clark, age 33, of Newark, Ohio, has pleaded guilty to embezzling more than $2.3 million from The Scotts Company and Ohio Bridge Corporation, aka US Bridge, where he had been employed as controller.   According to authorities, in early 2008, Clark wrote two unauthorized checks to himself totalling $24,450 from The Scotts Company after which time he began to work for US Bridge.  Prosecutors alleged that from April 2008 to September 2009, Clark embezzled another $2,310,006 from US Bridge by issuing unauthorized electronic funds transfers to his own accounts. Clark also is reported to owe $336,028 in back taxes to the IRS on the ill-gotten gains.   According to media reports, Clark has a prior conviction for embezzling some $40,000 from Huntington National Bank in the late 1990s where he had been employed as a bank teller.

Read the story here and here.

Sunday, November 20, 2011

Montana Woman Charged With Embezzling $171K From Hospice

Sandra Lea Morrison, 43, of Missoula, Montana, has been charged with embezzling $171,000 from the Hospice of Missoula, where she had been employed as a bookkeeper.  According to authorities, over more than a three year period, from July 26, 2007 until April 22, 2011, Morrison transferred funds to her own accounts from the hospice accounts and otherwise misappropriated funds from the non-profit.  She is also alleged to have issued herself additional paychecks and made fraudulent reimbursements to herself.  Morrison has been charged with three felony counts of Theft of Property by Embezzlement and one felony count of Theft by Embezzlement.

Read the story here and here.

Thursday, November 17, 2011

White Collar Rogue's Gallery

Visit Marquet International's updated and expanded White Collar Rogue's Gallery with profiles of 36 notorious US white collar fraudsters in recent (and some past) history.

Pennsylvania Woman Sentenced For Embezzling $450K From Bank

Danielle M. Keane, 38, of Greenfield, Pennsylvania, has been sentenced to 33 months in prison for embezzling $450,037 from Bank of New York Mellon where she had been employed as a data entry clerk.  According to authorities, over a period of about three years, from 2007 to 2010, Keane executed at least 239 fraudulent transactions, siphoning funds from bank client retirement accounts with checks or electronic transfers.  Prosecutors contended that Keane stole the money in part to support a drug habit.  She has also been ordered to pay restitution.

Read the story here and here.

Wednesday, November 16, 2011

Kentucky Woman Charged With Embezzling More Than $200K From Charity

Kathy Montfort
Mary "Kathy" Montfort, 53, of Louisville, Kentucky, has been charged with embezzling at least $200,000 from the Little Sisters of the Poor charity where she had served as bookkeeper.  According to authorities, the thefts date back to at least 2007 when Montfort allegedly began forging checks payable to herself or her creditors or otherwise for her and her family's own benefit and continued until the beginning of this month.  She is accused of writing some 43 fraudulent checks in just the past year and a half totalling $200,294.84.  The full extent of Montfort's fraud is not yet determined. 

Read the story herehere and here.

Update (4/2/12): Montfort, now 54, has pleaded guilty to embezzling what is now known to be $364,135  from the Little Sisters of the Poor charity by writing checks to herself or otherwise for her own benefit.

Update (9/5/12): Montfort has been sentenced to 27 months in prison and ordered to pay full restitution.

Texas Woman Charged With Embezzling As Much As $200K

Angela M. Blackwood Smith, 33, of Paradise, Texas, has been charged with embezzling as much as $200,000 from Cobb Rental and Equipment where she had been employed as office manager.  According to authorities, over a period of about 3 years, from 2008 until June 2011, Smith used company credit cards and bank accounts to pay her own bills. 

Developing...

Read the story here.

Illinois Woman Sentenced For Embezzling $271K From Eyecare Center

Tami I. Loy, 51, of Sullivan, Illinois, has been sentenced to 38 months in prison for embezzling more than $271,000 from Mattoon Eye Center where she had been employed as office manager.  According to authorities, over a period of at least 5 years from 2002 to 2007, Loy siphoned funds from the company's employee profit-sharing plan.  She was accused of creating phony accounts and falsifying bank statements and profit-sharing statements.  Loy has also been ordered to pay $271,994 in restitution as well as more than $62,000 in back federal taxes on the ill-gotten gains.  Loy is scheduled to be sentenced on December 14, 2011. 

Read the story here and here.

Texas Woman Pleads Guilty To Embezzling At Least $100K From Bank

Lori Smith Pickens, 39, of Grand Saline, Texas, has pleaded guilty to charges she embezzled more than $102,000 from customer accounts at the local Austin Bank branch where she had been employed as a teller.  Pickens reportedly worked at the bank from May 2008 to July 2010.  Authorities allege that Pickens made unauthorized cash withdrawals from numerous accounts, but the exact amount misappropriated has not yet been determined. 

Developing...

Read the story here.

Update (4/12/12): Pickens, now 40, has been sentenced to one year and a day in prison.  She has also been ordered to make full restitution.

2 Former Execs Of California Municipal Redevelopment Agency Plead Guilty To Embezzling $800K

Carolyn Y. Smith, 54, of San Diego, California, together with Dante Dayacap, 62, also of San Diego, pleaded guilty to charges they conspired to fleece as much as $800,000 from the Southeastern Economic Development Corp. where they has served as president and finance director, respectively.  According to authorities, Smith and Dayacap circumvented board of director authorities to pay themselves unauthorized bonuses and salary over a period of several years.  Smith and Dayacap each pleaded guilty to one count of embezzling public funds in exchange for dropping four other felony counts, including conspiracy to commit a crime, two other counts of embezzlement of public funds and one count of misappropriation of public funds.  Sentencing for the two, who were originally charged criminally by the State of California in May 2011, is scheduled for January 20, 2012.  Smith is reported to be the daughter of the prominent Rev. George Walker Smith.  Dayacap reportedly has a long history of financial problems, including three personal bankruptcies.

Read the story here and here.

Tuesday, November 15, 2011

Kentucky Pastor Accused Of Looting Church To The Tune Of $300K

Billy Owen Minix, 42, of Scottsville, Kentucky, has been charged with embezzling at least $300,000 from the Gospel Outreach Church where he had served as pastor, treasurer and secretary.  According to authorities, Minix siphoned funds, including cash donations, from the church over a period of 12 years.  According to reports, the church did not have a bank account and Minx simply deposited receipts into his own accounts and spent the money for his own benefit.

Read the story here and here.

Clayton Smart's $70 Million Cemetery Embezzlement Case Wraps Up

Clayton Smart, 71, who is from Okmulgee, Oklahoma, plead guilty to charges he embezzled some $70 million from 13,000 trust accounts at numerous cemeteries in Michigan and Tennessee which he owned.  Yesterday he was ordered to repay $30 million to his former Michigan clients and $10 million to his former Tennessee clients.  In September, Smart was sentenced to up to 20 years in prison, plus pay restitution, after pleading guilty to 39 felony fraud counts filed in Michigan.  Smart is currently in federal prison for tax evasion charges filed in a related case following the 4 year term he already spent in prison in Shelby County, Tennessee.  Smart allegedly conspired with several others, including business partner Stephen Smith, 64, of Muskogee County, Oklahoma, Carter Conrad Green, 71, of Henderson, Nevada and Smart's financial advisor, Mark Singer, 45, of Philadelphia, Pennsylvania.  Smart's house of cards crumbled in July 2006, leading to fraud charges in late April 2007.  The fleecing of customer trust accounts for pre-paid funerals and cemetery maintenance spanned a period of about 2 1/2 years, from June 1, 2004 through December 31, 2006. 

Read the story here, here, here and here.

Michigan Woman Charged With Embezzling More Than $100K From Credit Union

Kristen J. Taft, 57, of Portage, Michigan, has been charged with embezzling more than $100,000 from the St. Joseph Valley Community Federal Credit Union where she had served as President.  Details of the case have not yet been released.

Developing...

Read the story here.

New Jersey Man Pleads Guilty To Embezzling $560K From Union

James J. Kearney Jr., 44, of Bayonne, New Jersey, has pleaded guilty to charges he embezzle more than $560,000 from the International Association Of Bridge, Structural, Ornamental and Reinforcing Ironworkers (Local 45 ), where he had served as secretary-treasurer. According to prosecutors, over a period of nearly 2 years, from January 2009 through September 2010, Kearney withdrew about $471,000 in cash from union accounts and kept $90,365 in receipts from membership dues for his own benefit.  In all, prosecutors alleged that Kearney misappropriated $561,365 from the union.  He pleaded guilty to an Information charging him with one count of embezzlement and faces up to 20 years in prison, plus restitution.  Kearney is scheduled to be sentenced on February 21, 2012.

Read the story here and here.

Read the DOJ announcement here.

Update (5/10/12): Kearney has been sentenced to 2 1/2 years in prison. 

Short Video On Ponzi Schemes

Watch a 3 1/2 minute primer on Ponzi Schemes from the New York Times, "Giving Fraud A Bad Name," here

Monday, November 14, 2011

West Virginia Woman Charged With Embezzling $237K From Convention Center

Tracie Breedlove Dennis, 38, of Charleston, West Virginia, has been charged with embezzling as much $237,000 from the Charleston Convention and Visitors Bureau where she had served as a director of operations.  According to authorities, over a period of more than one year, Dennis wrote unauthorized checks to pay for her personal expenses or otherwise for her own benefit.  Dennis allegedly forged checks requiring two signatures.  Specifically, Dennis has been charged with two counts of forgery and uttering and two counts of embezzlement.

Read the story here and here.

Mississippi Man Indicted For Allegedly Embezzling $130K

John Barry Norris of Pascagoula, Mississippi, has been indicted on charges he embezzled $130,155 from Rolls Royce Naval Marine where he had been employed as a site manager.  According to prosecutors, Norris siphoned the funds from the company over a period of about six months, until February 2011.  Details have yet to be disclosed.

Read the story here.

Developing...

Vermont Woman Pleads Guilty To Embezzling $325K From Eye Care Practice

Linda A. Belval, 52, of Morrisville, Vermont, pleaded guilty last month to embezzling about $325,000 from David H. Garbutt, O.D., a local optometrist where she had been employed as an office manager.  According to prosecutors, Belval wrote numerous unauthorized checks to herself over a 12 year period, from 1999 until February 2011.  Belval reportedly used several embezzlement schemes to misappropriate the monies, including fraudulently using a signature stamp to authorize checks, falsely reporting the money was paid to vendors, writing checks similar in size to her actual paychecks to cover her tracks, and reimbursing herself for fake office expenditures.  Belval plead guilty to one felony count of wire fraud.

Read the story here and here.

Update (4/24/12): Belval has been sentenced to nearly 2 years in prison.  She pleaded guilty to one count of wire fraud last October.

Idaho Woman Pleads Guilty To Embezzling $260K From Retailer

Susan Alene Hopkins, aka Susan Scott, 54, of Kootenai, Idaho, has pleaded guilty to charges she embezzled more than $260,000 from the Coldwater Creek retail company where she had been employed as an executive assistant.  According to prosecutors, over a period of about 4 years, from 2006 - 2010, Hopkins misappropriated monies from the company by abusing corporate credit cards for her own benefit.  Hopkins is also alleged to have embezzled funds from the Panhandle Alliance For Education, a nonprofit which raises funds for the Lake Pend Oreille School District.  She plead guilty to one count of grand theft in a plea agreement and was ordered to pay $251,943 in restitution over a 10-year period.  Hopkins is scheduled to be sentenced in February 2012. 

Read the story here and here.

Update (8/7/12): Hopkins has agreed to pay $246,561 in restitution and was ordered to serve 5 years in prison.

Update (10/9/12): Hopkins, now 55, has appealed her conviction to the Idaho Supreme Court.

Sunday, November 13, 2011

Missouri Woman Charged With Embezzling Nearly $400K

Candace S. McLuckie, 52, of Chillicothe, Missouri, has been charged with embezzling nearly $400,000 from Sonoco Plastics where she had been employed as an HR supervisor.  According to authorities, over an 8 year period, from 2002 to 2010, McLuckie siphoned funds from the company, originally known as Associated Packaging Technology, by causing fraudulent transfers through the payroll system for her own benefit.  A reported $387,524 was misappropriated in this manner, according to reports.  McLuckie has been charged with 20 counts of class C felony theft and stealing. 

Read the story herehere and here.

New Jersey Woman Sentenced For Embezzling $1.1 Million From Law Firm

Kathleen Baker, 54, of Brick Township, New Jersey, has been sentenced to 33 months in prison for embezzling some $1.1 million from an undisclosed law firm based in Lakewood, New Jersey, where she had been employed as office manager.  According to prosecutors, over a six year period from June 2003 to June 2009, Brick siphoned funds from the law firm by writing checks to herself and fictitious company called Corporate Solutions which she controlled.  Baker plead guilty last July to an Information charging her with one count of wire fraud.

Read the story here.

Read the DOJ announcement here.

Oregon Woman Charged With Embezzling $148K

Jane Lynn Sanders, 45, of Sandy, Oregon, has been charged with embezzling about $148,000 from the Eclectic Institute, a local producer of organic herbal supplements where she had been employed as an accountant.  Specifically, Sanders has been charged with 8 counts of first-degree aggravated theft, 10 counts of first-degree theft and 3 counts of falsifying business records.  According to authorities, over a period of about 2 years, from October 2008 through August 2010, Sanders siphoned funds from Eclectic and its two sister companies, Earth's Botanical Harvest and Eclectic Medical Publications.  Authorities alleged that Sanders paid company vendors with personal credit cards, then over-reimbursed herself by writing business checks to herself that were deposited into her personal bank account.  She is suspected of embezzling additional funds dating back to July 2006.  However, the statute of limitations ran out on the earlier thefts.

Read the story herehere and here.

Maryland Man Setenced For Embezzling $850K From DC Church

Jason Todd Reynolds, 40,  of Bowie, Maryland, has been sentenced to more than eight years in prison  for embezzling more than $850,000 from National City Christian Church of Washington, DC, where he had served as chief financial officer.  According to authorities, wrote checks to himself and abused church credit card and other accounts for his own benefit, including paying for "extravagant vacations, VIP tickets to NBA games, and fancy cars."  He was also accused of fraudulently taking out a $450,000 line of credit in the church's name for his own benefit as well.  Reynolds' various schemes spanned a period of five years, from 2003 to 2008.  He has been convicted on 12 felony counts including wire fraud, bank fraud, falsifying a loan application, aggravated identity theft and tax evasion.   Reynolds was ordered to pay $851,298 in restitution, plus $185,435 in back taxes on the ill-gotten gains.



Read the story here  and here.

Hat tip: FraudTalk reader Joe.

California Woman Charged With Embezzling $500K From College

Mandy Borquez, 33, of Los Angeles County, California, has been charged with embezzling about $500,000 from Antelope Valley College where she had been employed as an accounting assistant.  According to authorities, over the six year period of her employment with the college, from 2004 through 2010, Borquez siphoned the funds from the Student Development Office - funds generated through student fundraisers and concession sales.  The specific means by which she misappropriated the funds has not been disclosed.  Borquez has been charged with six felony counts of grand theft and identity theft. 

Read the story herehere and here.

Nebraska Woman Arrested For Allegedly Embezzling $114K From Bookseller

Melissa Sue Ormonde, 39, of Hickman, Nebraska, has been arrested on suspicion of embezzling $114,672.80 from Nebraska Book Co. where she had been employed as a bookkeeper.  According to authorities, Ormonde created two fraudulent payroll accounts in June 2010 that deposited payroll funds directly into her own accounts on a regular basis until the time of her arrest.  A total of 47 deposits were made via the phony payroll accounts.  She has been arrested on one felony theft by deception and two identity theft charges.  Ormonde had been an employee of the company since 2007.

Read the story here and here.

Update (8/21/12): Ormonde has been sentenced to 21 months in federal prison for embezzling what is now understood to be $115,700.  Ormonde was also ordered to pay $237,823 in restitution.

Monday, November 7, 2011

Trial Rescheduled For Iowa Woman, Accused Of Embezzling $102K From Municipality

The trial for Amber Franklin, 45, of Alburnett, Iowa, has been rescheduled for January 30, 2012, wherein she is accused of embezzling about $102,000 from the Municipality of Alburnett where she had served as city clerk.  According to authorities, Franklin paid herself extra with checks as well as through the payroll system and other unauthorized reimbursements.  The misappropriations ocurred over a nearly 4 year period, from January 2006 through December 31, 2009.

Read the story herehere and here.

Colorado Woman Sentenced For Embezzling $1 Million From State Public Employee's Retirement Association

Beth Ann Roybal, 53, of Denver, Colorado, has been sentenced to 10 years in prison for embezzling some $1 million from the Colorado Public Employee Retirement Association (PERA), where she had been employed as a senior portfolio manager for real estate.  According to authorities, over a period of 16 years, from 1993 until 2009 Roybal, skimmed rent checks and submitted fraudulent invoices for her own benefit on a property she managed on behalf of the Association.  Roybal was originally charged with 19 counts of felony theft and one count of forgery.  She plead guilty in August to one count of felony theft.  Roybal still faces a restitution hearing scheduled for November 21, 2011. 

Read the story here and here.

Sunday, November 6, 2011

Washington State Woman Sentenced For Embezzling More Than $1 Million From Medical Offices

Suzanne Gale Foss, 64, of Tacoma, Washington, has been sentenced to 7 years in prison for embezzling at least $1,074,576 from Tacoma Orthopedic Surgeons Inc. where she had been employed as office manager for more that 25 years.  The medical office also operates as Gig Harbor Orthopaedic Surgeons and Gig Harbor Ambulatory Surgery Center.  The thefts spanned at least 7 years and involved Foss writing checks to pay personal vendors or otherwise for her own benefit.  She was sued in court by the medical practice, which won a civil judgment in the amount of $776,590 against Foss last year.  She was charged with two counts of First Degree Theft.  Foss reportedly was addicted to shopping, according to testimony given by her husband, Atie Foss

Read the story herehere and here.

Kansas Woman Charged With Embezzling $143K From Medical Offices

Cheryl D. McAnally, 50, of Lenexa, Kansas, has been charged with embezzling at least $143,000 from the Overland Park Regional Medical Center where she had been employed as Director of Medical Staff Services.  She is a registered nurse by training.  According to authorities, over a period of about 3 1/2 years, from February 2007 to August 2010, McAnally siphoned the funds from the medical offices in a scheme that involved check forgery.  McAnally has been charged with three counts of theft and four counts of forgery.

Read the story here and here.

Georgia Woman Indicted On Charges She Embezzled $600K

Cassandra Lynn Ursrey, 51, of Waycross, Georgia, has been indicted on charges she embezzled more than $600,000 from CMH Manufacturing, Inc. d/b/a Clayton-Waycross, where she had been employed as payroll coordinator.  According to prosecutors, over a period of 7 years, from 2003 to 2010, Ursrey created false time entries for more than 750 former Clayton employees, then collected more than 2,000 payroll checks in those employees' names and falsely endorsed and cashed those checks to her own benefit. Ursrey has been indicted on charges of mail fraud, wire fraud and aggravated identity theft. 

Read the story here and here.

Hat tip: FraudTalk reader Joe.

Pennsylvania Woman Pleads Guilty To Embezzling $3.25 Million From Family Investment Firm

Anne Marie Connelly, 57, of Cheltenham, Pennsylvania, has pleaded guilty to charges she embezzled some $3.25 million from Wholesale Realtor's Supply Inc., a local family operated personal investment business where she had been employed as bookkeeper.  According to reports, Connelly wrote checks to herself, over a period of at least 6 years, from 2002 to 2008, to pay for personal vendors and otherwise for her own benefit.  The scheme unravelled after one of the company's banks informed the daughter of the owner that its account was overdrawn, prompting an internal investigation, including a forensic accounting review.  Connelly, who plead guilty to felony theft, faces up to 7 years in prison. 

Read the story here and here.

Hat tip: FraudTalk reader Joe.

Former Treasurer For Texas County Democratic Party In Trial For Embezzling $200K From Campaign Coffers

Dwayne Eugene Adams, 56, believed to be from San Antonio, Texas, is in trial accused of embezzling some $200,000 from campaign coffers of the Bexar County Democratic Party.  According to authorities, Adams siphoned the funds from Party accounts for his own benefit over a period of about a year.  According to media accounts, Adams falsified his educational background to get the job as treasurer.  He was indicted with felony theft and misapplication by a fiduciary in September 2010. 

Read the story herehere and here.

Note to self: Add Dwayne Adams to our Resume Liars Club

Former Dartmouth College Auditor Accused Of Embezzling "Hundreds Of Thousands" From Local Non-Profits Over 25 Year Period

Bruce McAllister, 78, of Thetford, Vermont, has been charged with embezzling "hundreds of thousands" of dollars from several non-profit organizations in New Hampshire and Vermont for which he had served as bookkeeper.  McAllister is a former auditor at Dartmouth College the prestigious Ivy League institution in Hanover, New Hampshire.  According to authorities, over a period of 25 years, from 1985 to 2010, McAllister siphoned funds from non-profits that included the Alpha Theta House, a co-ed fraternity at Dartmouth College and the Meccawe Club, a private trout fishing club.  McAllister and his wife Judith McAllister, have been named in civil actions by the fraternity and the fishing club to recover funds, according to reports.

Read the story here and here.

This one hits close to home as Dartmouth is my alma mater and I had friends in Alpha Theta.  I hope the College does a full audit of McAllister's last 5 years there.

Former Illinois Municipal Supervisor Charged With Embezzling As Much As $500K From Township

Rodney L. Deal, 55, of Otego Township, Illinois, has been charged with embezzling as much as $500,000 from the township where he had served as a municipal supervisor.  According to authorities, over a period of more than 2 years, from April 1, 1997 to May 1, 2009, Deal siphoned funds from the township.  He has been charged with two counts of theft and one count of official misconduct.

Read the story here and here.

Hat tip: anonymous FraudTalk reader.

Former Bookkeeper Of Washington, DC Landscaping Company Pleads Guilty To Embezzling $1.3 Million

Christopher F. Cunningham, 44, most recently of Spain where he had fled to avoid prosecution, has plead guilty to charges he embezzled some $1.3 million from a small unnamed landscaping company based in Washington, DC where he had been employed as bookkeeper.  According to authorities, over a five year period, Cunningham redirected what would have been legitimate vendor payments to himself or to his own creditors.  He also redirected client payments for his own benefit.  Cunningham pleaded guilty to one federal felony count of interstate transportation of money taken by fraud.  Cunningham faces up to 46 months in prison.

Read the story here and here.

Hat tip: FraudTalk reader Joe.

Update (2/8/12): Cunningham has been sentenced to 46 months in prison and ordered to pay $961,922 in restitution.  Federal authorities had previously seized $338,378 in assets from Cunningham.

Michigan Woman Charged With Embezzling More Than $100K From School

Keisha J. Veryser, 36, of Hayes Township, Michigan has been charged with embezzling more than $100,000 from the St. Mary School  in Charlevoix, Michigan, where she had served as principal.  According to prosecutors, over a period of about 3 1/2 years, from from September 2006 through March 2010, Veryser siphoned funds from school coffers to pay for personal expenses and for her own benefit.  Veryser has also been embroied in civil litigation with the Diocese of Gaylord, which sued her for recovery of funds.  She has also been charged with perjury as a result of allegedly false statements made in the civil matter.  She is due to go on trial for the criminal charges next April.

Read the story here and here.

Update (3/10/12): Veryser reached a plea agreement pleading guilty to 2 embezzlement charges.

Washington State Woman Sentenced For Embezzling Nearly $1 Million

Sarah Jane Johnson, 42, formerly of Redmond, Washington, has been sentenced to 4 years in prison for embezzling some $986,481 from Driessen Services Inc., an aircraft components manufacturing company where she had been employed as head of human resources with payroll responsibilities.  According to authorities, Johnson misdirected the funds through a payroll scheme which she recieved about $715,000 for herself and directed another $250,000 or so for state and federal payroll taxes.  Authorities alleged that Johnson kept former employees on the payroll for a period of time, directing their salaries into nine different account she controlled.  The thefts began in 2005 and spanned a 5 year period, but were not discovered until she left the company.  Johnson, who plead guilty to wire fraud earlier this year, has been ordered to pay more than $800,000 in restitution and will spend an additional 3 years on probation after her prison release.  Due to the thefts, the company reportedly had to layoff employees and freeze wages.

Read the story here and here.

Read the DOJ announcement here.

Former Bank Cashier In Iowa Pleads Guilty To Embezzling $6 Million Over 20 Year Period

George Todd Powers, 48, of Clarksville, Iowa has pleaded guilty to embezzling nearly $6 million from Iowa State Bank where he had been employed as a cashier.  According to authorities, over a period of about 20 years, from the Spring of 1991 to September 2010, Powers transferred funds from bank coffers to his own accounts.  He is also believed to have created false accounts and transaction entries to cover up the longtime misappropriations.  Prosecutors alleged that Powers embezzled at least $5,986,781.18 and spent some of the money on home improvements, luxury automobiles and other personal luxuries.  The bank has sued Powers in a civil action to recover funds.  He faces up to 32 years in prison, plus restitution and fines.

Read the story here and here.

Read the DOJ announcement here.

Hat tip: FraudTalk Reader Joe.

Update (3/8/12): Powers has been sentenced to more than 10 years in federal prison.