Massachusetts Woman Pleads Guilty To Embezzling "Hundreds of Thousands" of Dollars From Local Dental Practices

Phuong “Lisa” Nguyen, 32, of Quincy, Massachusetts, pleaded guilty to charges she embezzled "hundreds of thousands" of dollars from four unidentified dental practices where she had been employed as a an office manager or front desk manager. According to authorities, since 2006, Nguyen obtained a series of administrative positions at the four dental offices where she forged insurance reimbursement checks or in some cases, forged the doctor's signature on practice checks for her own benefit. Nguyen was reportedly fired from one of the jobs when the embezzlement was discovered. Nguyen, who plead guilty to three counts of uttering a forged security, one count of mail fraud, and one count of wire fraud is due to be sentenced on September 13, 2011 and faces up to 51 months in prison, plus restitution and fines.

Read the story here.

Read the DOJ announcement of her guilty plea here.

Update (10/21/11): Nguyen, now 33, has been sentenced to 46 months in prison for embezzling what has now been determined to be $378,624.  She must also pay restitution. 

12 Steps To Avoid Ponzi Schemes

12 Steps To Avoid Ponzi Schemes
(excerpted from the upcoming Marquet Report on Ponzi Schemes)

By Christopher T. Marquet

It has been two and a half years since the largest Ponzi scheme in history came to light with the collapse of Bernard L. Madoff Investment Securities, LLC in late November 2008 – now estimated to be about $20 billion. Since that time, numerous other major Ponzi schemes and investment frauds have been revealed, including infamous Madoff runners up: R. Allen Stanford and his Stanford Group entities ($7.2 billion); Thomas J. “Tom” Petters and his Petters Worldwide Group ($3.65 billion); Paul Greenwood and his Westridge Capital Management ($1.3 billion); Joel Steinger and his Mutual Benefits Corp. ($1.25 billion); Scott W. Rothstein and his Rothstein Rosenfeldt Adler ($1.2 billion); and Nevin K. Shapiro and his Capitol Investments, USA ($880 million). These are all massive frauds that have shaken investor confidence around the globe. Calls for stricter oversight and regulation abound and special criticism of the Securities & Exchange Commission has mounted for its apparent failure stop these frauds.

Nevertheless, greater investor awareness, due diligence efforts and increased enforcement actions – already underway – should help prevent future schemes from getting so destructive. Sadly, this will not stop the seemingly bottomless cesspool of con-artists who perpetuate investment fraud schemes. While it appears that Ponzi schemes have proliferated in recent years – and the numbers from our upcoming Marquet Report on Ponzi Schemes seem to support this theory, get-rich-quick investment fraud schemes have always been around. Indeed, these invasive weeds will continue to germinate with the allure of fast money and riches, lavish, celebrity lifestyles and the accoutrements that come with it all. The question is, can these weeds be squelched before they do too much damage?

Inevitably, all Ponzi schemes and other investment frauds such as pyramid schemes, collapse under their own weight. It is simply impossible to deliver high rates of return – universally implied or explicitly promised in Ponzi schemes – by using investors’ funds while continuing to attract additional investors. The collapse or revelation is only a matter of time. Unfortunately for those investors burned by the schemes, they will typically only see pennies on the dollar recovered. Claw-backs may also take back earlier returns derived from fraudulent schemes.

Some practical strategies for investors to help them avoid investment frauds and Ponzi schemes include, but are not limited to, the following:

1. Do your due diligence – thoroughly check out prospective investment advisors, money managers, hedge fund operators, private equity funds and any other individual or entity to be entrusted with your hard earned investment funds. As The Marquet Report on Ponzi Schemes has demonstrated, a significant percentage of Ponzi scheme operators (at least 1 in 8, according to our research) have prior criminal, fraud accusation or regulatory censure in their histories. Others are not even registered with the appropriate regulatory bodies. Nearly 5% of the investment frauds we reviewed in this report involved the sale of completely phony securities.
Make sure outside auditors are reputable. In some cases they have been completely phony.

Regulatory & licensing checks - The SEC requires investment adviser representatives and investment advisor firms to register by filing an “Independent Adviser Public Disclosure” called a “ADV Form”. These can be searched directly on the SEC’s web site here. The SEC site can also be searched for regulatory actions, litigation notices, enforcement actions and other sanctions. The Financial Industry Regulatory Authority (“FINRA”) maintains a searchable disclosure called “BrokerCheck” which includes files on registered brokers, including affiliations, qualifications and regulatory actions (see here). Each state has a securities regulating body that can be contacted. A useful listing can be obtained at the North American Securities Administrators Association, here. Other professional associations can be checked as well, including The Financial Planning Association, The National Association of Personal Finance Advisors, and the Certified Financial Planner Board of Standards.

Background checks – for deep digging conduct a thorough background check on the individual(s) to be entrusted with investment funds. This would include a thorough vetting of credentials, employment history, educational background, as well as independent civil and criminal checks, searches for liens, judgments and bankruptcies and the aforementioned regulatory bodies. Media coverage, business affiliations and online Internet profiles should all be checked. Identify “non references” – individuals who have had dealings with the subject in the past, but may not be listed as a client reference. Such individuals may be former business partners, former employees, current or former clients, industry analysts and others. Finally, a “lifestyle check” can also be conducted. As we have seen, most Ponzi schemers live a fairly opulent or lavish lifestyle. While not a conclusive indicator of fraud, it is certainly a common theme. Independent investigatory firms like Marquet International and other reputable outfits provide this kind of service.

Talk to people – it is not good enough to just “ask around” or talk to references provided. No one gives out bad references. Some fraudsters actually manufacture fraudulent references. Speak to actual longtime clients. Speak to “non” references. This latter category can be identified by asking the actual references for others to speak to or through the background investigation outlined above.

2. If it sounds too good to be true, it probably is – as we have seen Ponzi schemers induce prospective investors with the promise of higher than market returns – often sky high or extraordinary returns. The upcoming Marquet Report on Ponzi Schemes analysis shows that the higher the promised returns the shorter the life of the Ponzi scheme. Still, that is cold comfort for those who get burned. Any investment program that purports to deliver significantly higher than market rates of return should be an immediate yellow, orange or even red flag, depending upon how incredible they are. That, in fact, is the proper word for it – incredible – meaning “so extraordinary as to seem impossible,” “not credible,” “hard to believe,” “unbelievable,” “farfetched,” “astonishing,” and “preposterous,” according to dictionary definitions.

3. Be skeptical of exotic financial products – if you cannot understand what the investment is and how it works, you probably should not invest in it. Ponzi schemers do not like to have to explain their programs with too much specificity and therefore often make them appear highly complex or simply describe their trading program as “proprietary” or an “exclusive” program.

4. Be skeptical of “once in a lifetime claims” – as in the case of typical pyramid schemes, prospective investors are given a “once in a lifetime” opportunity to “get in on the ground floor”.

5. Be highly skeptical of “guaranteed” returns or “risk free” investments – as previously noted, no legitimate investment advisor can or will guarantee returns and no investments are risk free. Since all investment involves risk, higher returns necessarily means higher risk. Also avoid investments described as “sure things” or “special” or “exclusive” access.

6. Be skeptical of investment programs targeted at specific “affinity” groups – as our upcoming Marquet Report on Ponzi Schemes determined, elderly or retired individuals are the most common affinity group targeted by Ponzi schemers. Other common affinity groups include Religious sects and Ethic groups. Ponzi schemers sometimes attempt to create an exclusivity mystique about their investment “opportunity.” Be concerned if your investment advisor claims you are now a member of an “exclusive” club.

7. Be skeptical of flimsy disclosures and statements – Many Ponzi schemers provide little disclosure information (naturally) upfront and provide fraudulent or completely fabricated statements to investors. Examine the statements, be sure they are detailed and regular, ie. monthly. Statements should come from the custodian of funds, not the investment advisor.

8. Be wary of too regular returns, especially in a volatile market – it is impossible for real securities investments to make consistent returns, month after month, year after year. This was Madoff’s hook (and tell), by providing stability of returns. Likewise, if promised returns or dividend payments are not forthcoming, investigate. Be sure your liquidation options are open.

9. Be skeptical of new or unknown investment firms/advisors – It is much less risky to work with a well-established reputable outfit than someone new or unknown.

10. Be skeptical if your investment advisor is also not the custodian of your investment – the adjunct is also valid: be wary if the custodian is an affiliate of the investment advisor. The custodian has direct access to your investment funds.

11. Avoid high pressure sales tactics and cold call or Internet solicitations – you can be sure than many of these are fraudulent.

12. Diversify your investments – Many investors lost their life’s savings in the recent spate of Ponzi schemes. That is because they put all of their eggs in one basket. If the basket rots through, a diversified investor will at least have many other baskets to place their eggs.

Massachusetts Man Accused Of Embezzling $100+K From Local VFW

James T. Wagner, 69, of South Dartmouth, Massachusetts, has been charged with embezzling more than $100,000 from the Andrews-Dahill Post of the Veterans of Foreign Wars where he had served as longtime quartermaster. Details are scant at this point, but Wagner apparently wrote checks out to himself as well as to fictitious businessess and individuals as well as real people, including the infamous Lorena Bobbitt.

Read the story here and here.

Former Detroit Public Schools Bookkeeper Pleads Guilty To $150K Embezzlement

Allen Swayze, 34, of Detroit, Michigan, pleaded guilty to embezzling nearly $149,000 from the Detroit Public Schools' Breithaupt Career and Technical Center, where he had been employed as a bookkeeper. According to authorities, Swayze wrote numerous checks to himself over a period of nearly 3 years, from August 2006 until May 2009, totaling $148,772.86. Swayze faces up to 18 years in prison upon sentencing on August 23, 2011. Swayze must also pay full restitution.

Read the story here and here.

Read the DOJ announcement of Swayze's indictment here.

Update (8/23/11): Swayze was sentenced to 14 months in prison and ordered to pay restitution of nearly $149,000.

Yet Another Virginia Beach Area Major Embezzlement Case: Bookkeeper Charged With Embezzling $567K From Law Firm

Diana Lynn Farmer-Forston, 54, of Virginia Beach, Virginia, has been charged with embezzling $567,000 from the law firm Bennett and Zydron where she had been employed as a bookkeeper. According to authorities, Farmer-Forston's scheme spanned a 4 year period ending late this past February. Farmer-Forston is accused of forging at least 210 checks from the law firm and depositing them into her own accounts. Media reports suggest she used the ill-gotten gains to support a lavish lifestyle, purchasing numerous luxury goods, a BMW and to fund an investment account at Merrill Lynch.

Read the story here and here.

There seems to be something in the water casuing an epidemic of embezzlement cases in the Norfolk-Virginia Beach area in recent years. By our count, there have been at least 12 major embezzlements in the area in the past couple of years.

Former Treasurer of North Carolina Playhouse Sentenced in $300K Embezzlement

John Willis Hurst, 51, of Charlotte, North Carolina, has been sentenced to 12 to 16 months in prison for embezzling more than $300,000 from the Matthews Playhouse of the Performing Arts where he had served as treasurer. According to authorities, over a period of 7 years, from 2002 until August 2009, Hurst siphoned funds from playhouse coffers. He was arrested in June 2010 and plead guilty last week. However, details are unclear as to how Hurst embezzled the monies. Hurst was also ordered to make restitution to the playhouse and to pay court costst.

Unfortunately, we note Hurst is still listed as an executive board member and treasurer on the playhouse website here. Research suggests that Hurst was a broker with the Principal Financial Group until late 2009. He has been debarred by the Financial Regulatory Authority (FINRA) as a result of this criminal matter.

Read the story here and here.

New Jersey Man Sentenced For Role In $784K Postal Service Union Embezzlement Scheme

John McGovern, 55, currently of Hawthorne, New Jersey and formerly of Ridgewood, New Jersey, has been sentenced to 20 months in prison for embezzling $783,931 from the North Jersey Area Local 190 of the American Postal Workers International Union where he had served as secretary-treasurer. According to authorities, McGovern conspired with the union's former president, Gary G. Weightman, 58, of Keansburg, New Jersey, to siphon payroll funds by issuing additional additional pay to themselves as well as reimbursing themselves for non-existent or personal expenses. The scheme spanned a two and a half year period, from April 2000 to October 2002. McGovern pleaded guilty last November to one count of conspiracy to embezzle from a union. He is reported to have spent much of the ill-gotten gains at casinos in Atlantic City. Weightman has pleaded guilty to tax evasion and is due to be sentenced for his part on June 10, 2011. The two were originally arrested in February 2006.

Read the story here, here and here.

New Mexico Man Charged With Embezzling $100K From Clients

Paul Scott Thomas, 43, of Aztec, New Mexico, has been charged with embezzling at least $100,000 from clients of Chipman's Accounting where he was employed as an accountant. According to authorities, Thomas wrote checks to himself from accounts belonging to clients, Reed's Welding and Lower Animas Community Ditch Company. Thomas has been charged with 2 felony counts of embezzlement and 10 counts of forgery. Authorities believe Thomas' scheme spanned a three year period from late 2007 until November 2010 and could amount to as much as $300,000 in losses.

Read the story here.

Wisconsin Woman Sentenced For Embezzling $617K

Mary Radiske, 47, of Thiensville, Wisconsin, has been sentenced to 5 years in prison after pleading guilty to charges she embezzling at least $617,432 from the Wisconsin Kitchen Mart where she had been employed as its longtime bookkeeper. According to authorities, over a five year period from 2005 until early 2010, Radiske wrote at least 79 checks from company coffers, made out to her husband, forging the signatures of the owners and depositing them into her own accounts. At her sentencing hearing, Radiske reportedly claimed she stole the money to "keep her husband happy." Randall Radiske, 47, has not been charged in the case and investigators do not believe he had a part in the theft. Randall Radiske has since filed for divorce. Mary Radiske must also pay restitution of $554,000.

Read the story here, here and here.

Texas Woman Sentenced To 25 Years For Embezzling More Than $1 Million From Church & 2 Charities; Has 2 Priors

Louanne Aponte, 52, of Austin, Texas, was sentenced to 25 years in prison for embezzling more than $1 million from Family Connections, a child care services non-profit, for which she had served as executive director. She also took funds from the Texas Association of Child Care Resource and Referral Agencies and the Hyde Park Christian Church, where she had served as treasurer, according to prosecutors. When a state audit found that Aponte had falsified records, she reportedly fled to Venezuela in February 2010, but returned six months later when she was arrested. Aponte's now estranged husband, Marco Aponte, 48, was charged with money laundering. According to reports, some $2 million was tracked going into accounts held by the Aponte's over a period of 7 years. Louanne Aponte, formerly known as Louanne Shetter, was twice convicted on embezzlement charges in the 1980s, according to media reports.

Read the story here, here, here, here and here.

Former Secretary For Michigan Union Pleads Guilty To Embezzling $412K

April Dawn Franklin, 35, of Lansing, Michigan, pleaded guilty to charges she embezzled some $412,000 from the Plumbers and Pipefitters Local 333 union where she had been employed as a secretary for a decade. Details have not been disclosed. Franklin is scheculed to be sentenced on July 25th.

Read the story here and here.

Update (7/26/11): Franklin was sentenced to 42 months in prison and ordered to pay restitution of $412,000.  According to authorities, her thefts from the union spanned a ten year period, from 1999 and 2009.  She had pleaded guilty to theft from an employee benefit plan.

Indiana Woman Charged With Embezzling $364K From Church

Beth Ann Boger, 44, of Garrett, Indiana, has been charged with embezzling $364,436 from the St. Joseph Catholic Church of Garrett where she had served as bookkeeper. According to authorities, over a nearly five year period, from June 3, 2004 until April 17, 2009, Boger wrote checks to herself and made electronic funds transfers to her own accounts from bank coffers. Originally indicted in March, Boger has been charged in a superseding indictment with six counts of wire fraud and four counts of tax evasion.

Read the story here and here.

Virginia Woman Sentenced For Embezzling Nearly $100K

Mary Beth Lloyd, 41, of Richmond, Virginia, was sentenced to 16 months in prison for embezzling $98,156 from the Grace Covenant Child Development Center where she had been employed as director. Lloyd was also ordered to pay restitution in the amount of $136,396.34. According to prosecutors, Lloyd's scheme spanned a five month period between December 1, 2009 and May 1, 2010. Lloyd reportedly told parents to make tuition checks out in her name, falsely claiming as a director, she had a development center account as such. Lloyd deposited those checks directly into her own personal accounts.

Read the story here and here.

Former Treasurer Of Ohio Food Pantry Sentenced In $213K Embezzlement Case

Gayle J. Tatman, 59, of Grove City, Ohio, was sentenced to 2 years in prison for embezzling nearly $213,000 from the Grove City Food Pantry for which she had served as treasurer. According to authorities, Tatman siphoned the funds, amounting to half of the pantry's cash, over a period of 7 years, from May 2002 until April 2009. Tatman's scheme involved forgery of checks and at least four of the organization's bank accounts, including one that was supposed to have been closed out years ago. She plead guilty in a plea agreement in January to one count of bank fraud.

Read the story here, here and here.

Read the DOJ announcement here.

Michigan Woman Indicted On Charges She Embezzled $236K From Credit Union

Marcie Graham, 30, of Lansing, Michigan, has been indicted on charges she embezzled some $236,000 from the Case Credit Union where she had been employed as a an assistant manager. According to prosecutors, Graham's scheme spanned nearly two years from December 2008 until October 2010. She faces up to 30 years in prison, plus fines and restitution.

Developing...

Read the story here and here.

Read the DOJ announcement here.

Former CFO For Alabama School Board Sentenced For $100K Embezzlement

Monica Baker Foote, 53, of Ozark City, Alabama, has been sentenced to 2 years in jail for embezzling more than $100,000 from the Ozark City Board of Education where she had been employed as chief financial officer. Foote must also pay restitution in the amount of $102,170. Foote, who was indicted on 4 felony counts, allegedly used Board funds to pay for personal items over an unspecified period of time. Foote reportedly resigned her position of 14 years in 2009 after irregularities were discovered in the accounting.

Read the story here , here, and here.

Tennessee Woman Pleads Guilty To Embezzling Nearly $200K From Realtor Association & Local Business

Deborah T. Flick, 56, formerly of Bristol, Tennessee and now of Clayton, North Carolina, pleaded guilty to charges she embezzled some $157,000 from the Bristol Tennessee-Virginia Association of Realtors, where she had served as an executive and an additional $40,000 from a local interior decorator in an effort to hide the original thefts. According to authorities, Flick routinely charged personal items on the association's credit card over a three year period, from July 2007 through October 2010. Flick was also a part-time secretary for Wes Taylor Interiors in Bristol and issued checks to the association in an effort to cover-up her thefts. As part of her plea agreement, Flick will receive a 9 year sentence and must make restitution.

Read the story here.

Update (10/28/11): Flick, now 57, has been sentenced to one year in jail, plus 14 years on probation.

Pennsylvania Woman Sentenced To 30 Months In Prison For Embezzling $3.7 Million

Thea Tafner, 56, of Danville, Pennsylvania, was sentenced to 30 months in prison for embezzling $3.71 million from American Hose and Chemical Fire Company, for which she had served as chairperson. According to authorities, Tafner diverted Medicare payment funds over a period of 9 years, from October 2000 to November 2009, by utilizing a fraudulent account for the company she controlled. Tafner, who was originally charged last December and plead guilty in January, was also ordered to pay $2 million in restitution. Tafner is also the principal of the Line Mountain elementary school.

Read the story here and here.

Arizona Brothers Plead Guilty To Embezzling $1.3 Million

Robert Lee Skaggs, 57, and Ray T. Skaggs, 42, of Tucson, Arizona, pleaded guilty to charges they embezzled about $1.3 million from social security recipients. According to authorities, the brothers, through a non-profit company they controlled called SCOPE, which operated as a payee services firm that paid bills and distributed social security money for recipients not able to manage their own expenses. The Skaggs' misappropriation spanned more than 13 years, from December 1994 to April 2008. The two pleaded guilty to conspiracy, mail fraud and conversion of security payee funds and face 20 years in prison and have been ordered to pay restitution. Another sibling, Jo Ann Skaggs, 53, their sister, was also involved in the company and is awaiting trial, which is set for June 20. The three were originally indicted last October.

Read the story here and here.

Washington State Bookkeeper Charged With Embezzling $200K

Stanley W. Sigler, 47, of Chehalis, Washington, has been charged with embezzling more than $200,000 from Rakoz Electric where he had been employed as a bookkeeper. Sigler faces 10 counts each of theft, identity theft and forgery for allegedly writing as many as four checks to himself each month and signing the owners signature, in addition to his paycheck.

Read the story here, here and here.

Major Embezzlement Reported In Minnesota

Authorities were notified about a major embezzzlement of more than $100,000 from a local business based in Egan, Minnesota, according to the police blotter published in the Egan Patch. The victim company has been instructed to document the loss and present it to authorities for prosecutorial consideration. No details have yet been released.

Developing...

Former Alabama Bookkeeper Sentenced For Embezzling More Than $1.2 Million

Judi Daniels, 66, of Wetumpka, Alabama, has been sentenced to 15 years in prison for embezzling more than $1.2 million from CCC Associates, a local publishing concern, as a bookkeeper. According to authorities, Daniels misappropriated the funds over a period of 25 years. Daniels, who pleaded guilty in March to first-degree theft of property, was previously convicted of embezzling $20,000 from another employer in 1983.

Read the story here and here.

Former Treasurer for Illinois Volunteer Fire Company Charged With Embezzling $260K

David Garmoe, 54, of Glen Ellyn, Illinois, has been charged with embezzling more than $260,000 from the Glen Ellyn Volunteer Fire Company where he had served as treasurer for some 20 years. According to prosecutors, Garmoe wrote 87 checks to himself and to his business, Fireground Supply, over a period of about 7 years. Garmoe has been charged with felony counts of theft of more than $100,000, money laundering and forgery.

Read the story here, here and here.

Former South Carolina Bank Teller Pleads Guilty To Embezzling At Least $241K

Teresa Johnson, 44, of Gaston, South Carolina, pleaded guilty to embezzling more than $271,000 from SAFE Federal Credit Union where she had been employed as a teller. According to authorities, over a period of nearly three years, from December 2006 to September 2009, Johnson misappropriated funds from the bank. Johnson, who was originally indicted in April 2010 on charges she embezzled $445,000, was sentenced to 21 months in prison and must pay restitution of $241,272.

Read the story here and here.

Virginia Couple Charged With Embezzling $250K From Security Company

Cheryl A. Wadsworth, 43, and her husband, James B. Wadsworth, 40, both of Chesterfield, Virginia, have been charged with embezzling some $250,000 from Al's Security Patrol, where Cheryl was employed as an accountant and James was employed as a security guard. Al's Security Patrol is a company owned by Cheryl's step-father, Al Resh. Details of the embezzlement have yet to be released, but the thefts allegedly date back two at least January 2009.

Read the story here and here.

Californian Charged With Embezzling $175K From Union

Tracy Ford, 47, of Stockton, California, has been charged with embezzling nearly $175,000 from the Machinists Local Lodge 1528, where she had been employed as Secretary-Treasurer. According to authorities, Ford embezzled $174,891 under the guise of authorised salary and related benefits, and by using union assets to pay for health insurance for a former officer of the union, in exchange for which she received oxycontin from the former officer. The misappropriation allegedly spanned a 5 1/2 year period, from September 2003 thorough February 2009. Ford faces up to one year in prison, plus fines and restitution.

Read the story here and here.

Michigan Accountant Accused In $1.1 Million Embezzlement Scheme

Susan J. Morrison, 49, an accountant working for Munson Healthcare in Traverse City, Michigan, has been accused of embezzling more than $1.1 million from the company. The scheme, which involved fraudulent transfers over a 5 year period from company accounts to accounts she controlled at a business she controlled, Great Lakes Bear Factory. Morrison, who was suspended from their position last month, has yet to be charged.

Developing...

Read the story here, here and here.

Update (9/2/11): Morrison has pleaded guilty to embezzling more than $1.1 million from Munson Healthcare.  She had been an employee at the company for 11 years.

Update (12/8/11): Morrison was sentenced to 46 months in  prison and ordered to pay $1.1 million in restitution.

Maine Man Accused of Embezzling $1.25 Million From Freemasons

Vincent Paul Reed Jr., 58, of Shapleigh, Maine, has been charged with embezzling some $1.25 million from the Massachusetts Grand Lodge of Masons where he had been employed as treasurer, an elected position. According to authorities, Reed's scheme spanned a period of about 7 years, from 2001 to 2008. Details have yet to be released.

Developing...

Read the story here.

Volunteer Little League Treasurer Charged With Embezzling More Than $100K

Joyce Bidnick, 58, of New City, New York has been charged with embezzling more than $100,000 from the New City Little League for which she had served as volunteer treasurer. Bidnick reportedly is seeking counseling at the county mental health crisis center. Bidnick is accused of writing checks to herself for nearly 8 years, since 2003 and then falsifying the League's books to hide her thefts. Meanwhile a forensic audit is still in process.

Read the story here and here.

Update (5/24/12): Bidnick has pleaded guilty to what is now understood to be more than $400,000 from the New City Little League.  She allegedly wrote numerous checks made unauthorized withdrawals from the league's accounts.

Ohio Man Charged With Embezzling Nearly $1.7 Million

Mark Cherubini, 44, of rural Knox County, Ohio, has been charged with embezzling nearly $1.7 million from three separate businesses owned by his high school friends for which he had served as financial manager, including Law General Contracting, RMR Holdings and Redskin Transport. According to authorities, over a period of nearly 8 years, from January 2003 until September 2010, Cherubini falsified financial ledgers and wrote fraudulent checks to a fourth company he had worked for but had been sold to foreign owners. Cherubini allegedly kept one of the old company's accounts open and used the proceeds for his own benefit. Prosecutors also allege that Cherubini owns a quarter horse farm which he purchased with the ill-gotten gains from his alleged misappropriations. Cherubini has been indicted on nine felony charges, including three counts of aggravated theft, three counts of money laundering, two counts of misuse of a credit card and one count of engaging in a pattern of corrupt activity.

Read the story here, here and here.

Authorities Seek Massachusetts Man Who Allegedly Embezzled $100K From Church

Raiffeisen Regalado, 41, last known to reside in Methuen, Massachusetts, is being sought by authorities in connection with his alleged embezzlement of $106,570 from the Seventh Day Adventist Church in Lawrence where he had served as treasurer. The embezzlement occurred in 2006 and 2007, but charges were not brought until recently, after he failed to make restitution as he reportedly agreed to do with church officials. The thefts involved fraudulent transfers of funds from church accounts to Regalado's personal accounts over that two year period. According to his LinkedIn page, Regalado is a Senior Systems Technical Specialist at New York Life Insurance Company and own a couple of businesses together with his wife, Yajaira Regalado, R&Y Enterprises and YesInDeed Solution Corp.

Our sources put Regalado in Florida (Apollo Beach or Riverview).

Developing...

Read the story here.

Former CFO of North Carolina Company Charged With Embezzling $91K

John Edward Dee, 41, of Charlotte, North Carolina, has been arrested and charged with embezzling $90,600 from the Harris Land Company, where he had been employed as chief financial officer. According to authorities, Dee issued himself extra payroll over a period of about 2 years.

Developing...

Read the story here and here.

Tennessee Man Under Investigation For Allegedly Embezzling "Hundreds of Thousands" of Dollars From State Court Clerk's Office

Brandon Gunn, 46, of Shelby County, Tennessee, is under investigation by authorities for allegedly embezzling at least $200,000 from the Shelby County Chancery Court Clerk’s Office where he had been employed as a bookkeeper. Details have not yet been released and Gunn has yet to be charged with anything. Reports indicates Gunn was suspended for 2 days in 2007 when it was discovered that there was a cash shortage in the cash register. Gunn resigned from the Clerk's Office last month.

Developing...

Read the story here.

Update (10/28/11): Gunn, now 47, pleaded guilty to three counts of embezzlement, conspiracy and money laundering in a plea agreement.  He faces up to 35 years in prison.  Gunn reportedly wrote numerous checks from court coffers to at least two entities he created, Sunset Thirty-Three LLC and First Family LLC, as well as to an associate, Correy Isom, for his own benefit.  The scheme spanned a reported 3 years.

Update (11/10/11): Correy Isom has now been formally indicted in this case for his part in allegedly conspiring with Brandon Gunn. 

Update (2/3/12): Gunn was sentenced to 4 years in prison and ordered to pay $1 million in restitution. 

California Bookkeeper Arrested For Allegedly Embezzling $137K From Dental Office

Amanda Marie Boling, 30, of Lodi, California, has been arrested and charged with embezzling $137,000 from the dentist office of Dr. Kevin Fleming, where she had been employed as a bookkeeper. According to prosecutors, Boling fraudulently gave herself extra payroll in the form of "employee reimbursements." Boling's scheme is believed to have spanned a three year period. Boling, a 12 year veteran employee of the dental office, faces up to three years in prison if convicted.

Read the story here and here.

Update (2/29/12): Boling, now 31, plead guilty to grand theft by embezzlement of more than $65,000. 

Former Michigan Funeral Director Sentenced In $268K Embezzlement

Matthew Purchase, 40, of Berrien Springs, Michigan, has been sentenced to 5 years in prison for embezzling some $268,509 from the Legacy Family Funeral Services which he owned and where he had served as funeral director. According to authorities, Purchase misappropriated proceeds from pre-paid funeral contracts. Purchase was originally charged with one count of operating a criminal enterprise and fourteen counts of embezzlement. He must also pay full restitution.

Read the story here, here and here.

State Run Psychiatric Facility In California Reports $250K Embezzlemnt Investigation

Patton State Hospital in San Bernardino, California has reported that it is investigating an apparent embezzlement of some $250,000 in payroll money by four employees. Those employees in question are no longer working for the facility, according to authorities with the hospital. No one has been charged and hospital investigators have yet to hand off the case to law enforcement, but are planning on doing so in the near future.

Developing...

Read the story here.

Major Embezzlement Case Under Investigation In Texas

Abilene, Texas police investigators are looking into evidence that a major embezzlement involving more than $100,000 had taken place at Spine Abilene, a local medical treatment facility. The identity of the alleged perpetrator has not yet been released.

Developing...

Read the story here.

Update (8/26/11): Abilene police have arrested Heather Ann Smith, 37, on charges she embezzled what is now estimated to be $525,000 from Spine Abilene, dba Abilene Diagnostic Clinic, where she had been an office manager.  Smith made numerous unauthorized credit card purchases for her own benefit with company credit cards as well as wrote checks to herself over a period of 6 years from 2005 to 2011.

California Office Manager & Cohorts Charged With Embezzling $600K From Church

Kathleen "Kathy" Dake, 58, of Danville, California, and two cohorts have been arrested and charged with embezzling nearly $600,000 from the St. Isidore's Catholic Church in Danville, where Dake had served as office manager. Others arrested in the scheme include Virgilio Lukban, 46, of Danville and Evelyn Peinado, 64, of Alamo. According to authorities, Dake, Peinado, was a volunteer with the church's finance committee, and Lukban, another church employee, systematically looted its finances by making unauthorized credit card charges for personal purposes as well as writing church checks for their own benefit. Approximately $580,000 is believed to have been misappropriated by the trio.

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Update (5/13/11): Dake has pleaded not guilty to the charges.

Nantucket Bookkeeper Jailed After Admitting $300K Embezzlement

Jennifer K. Lelle-Merlos, 45, of Nantucket, Massachusetts, was sentenced to six months in jail after pleading guilty to charges she embezzled more than $300,000 from Murray's Toggery Shop, a local clothing store where she had been employed as a bookkeeper. Lelle-Merlos plead guilty to one felony count of larceny greater than $250. She had an additional year and a half prison sentence suspended, but most pay restitution in the amount of $304,000. Lelle-Merlos, a 20 year employee of the store, reportedly wrote numerous unauthorized company checks to herself and others for her own benefit. The scheme spanned at least 2 years.

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