Sunday, June 26, 2011

Mother & Son Arrested For Embezzling $16 Million From New York City Textile Companies

Judy Del Galdo, 66, of Staten Island, New York and Sayreville, New Jersey and Joseph Del Galdo, 46, now of Buford, Georgia, but formerly of Chester, New Jersey, have been arrested for embezzling about $16 million from two New York City textile businesses owned by the same family, Hi-Fashion Fabrics Inc. and Timeless Treasures Fabrics Inc., where she had been employed as a bookkeeper.  According to prosecutors, Judy Del Galdo siphoned the funds from the companies over a period of 7 years, beginning in 2003, by issuing "hundreds" of checks from the businesses to a dummy company she and her son created, Tea-Rific Beverage Inc.  The mother-son pair converted the funds for their own uses and reportedly lived extraordinary lavish lifestyles off of the ill-gotten gains.  In addition to hundreds of thousands spent on real estate and luxury automobiles, the two spent some of the stolen funds in the following manner, according to media accounts:

* $889,000 in mortgage and related payments on three properties
* $564,000 in credit-card payments
* $500,000 in flights on private jets
* $493,000 in cash withdrawals
* $458,000 in other travel and hotel expenses
* $368,000 in payments toward a million-dollar yacht
* $330,000 in payments for luxury suites and sponsorships at Madison Square Garden and the Meadowlands
* $166,000 in home-theater purchases
* $62,000 in private-school tuition
* $54,000 in Apple and iTunes purchases

Judy Del Galdo had been a 22 year employee of the companies and the thefts were only discovered after she retired in April of last year.

Read the story here and here.


Ajlounyinjurylaw said...

Who would have thought the bookkeeper would embezzle...sounds so cliche'.

Holly said...

How do you embezzle 16 million?