Massachusetts Man Charged With Embezzling $1.1 Million From Real Estate Developer

From the Worcester Telegram & Gazette on 3/18/2015:

A trusted employee who worked for a quarter-century at one of the area's largest development companies is accused of embezzling more than $1 million by electronically diverting money to secret accounts.

Michael R. Lussier, 59, with a last known address of 13 Pond St., Paxton, was arrested in Rhode Island on a warrant on Feb. 18 and he was brought to Milford District Court where he was arraigned on two charges of larceny over $250.

Mr. Lussier was ordered held on $50,000 cash bail, which has since been posted. He had a pretrial hearing Monday, and the case was continued to April 10.

According to court documents, Mr. Lussier worked as controller/accounting manager for FRE Building Co. Inc. since November 1986. Mr. Lussier is alleged to have electronically diverted $1.1 million from the company to bank accounts for his personal use. Mr. Lussier's arrest last month capped a yearlong investigation that began on Feb. 24, 2014, and included the help of a private investigator hired by the company to track Mr. Lussier, who at first called in sick with the flu and then disappeared for several months, according to court documents.

Milford police were called to the company's offices at 120 Quarry Drive to meet with executives concerning weekly withdrawals Mr. Lussier allegedly had been making from the business bank account with Santander and depositing into a personal account at the same bank.

According to police records at Milford District Court, Mr. Lussier would make weekly transfers from the bank account from Quarry Square Realty Trust, an affiliate of FRE that owns and operates a shopping plaza in Milford, to a joint account that he had opened in his name and in the name of Madlyn Fafard, one of the principals of FRE. Mr. Lussier would make the transfers by writing a bank check made payable to Mrs. Fafard, and he would sign his name and endorse the check with a rubber stamp "Pay to The Order of Sovereign Bank . . .For Deposit Only Madlyn Fafard Escrow Michael R. Lussier."

Mrs. Fafard, however, told investigators she was unaware of the account and never authorized Mr. Lussier to open it; furthermore, she never accessed, deposited or withdrew funds from the account. Mrs. Fafard could not be reached for comment. A message was left for Paul J. Beattie, general counsel for Fafard Real Estate, but was not returned.

Attempts to reach Mr. Lussier by phone were unsuccessful, and a message was left for his Worcester attorney, James Gribouski, as well.

Court documents, however, outline alleged embezzlement that dates back to 2011.

From May 2011 through January 2014, Mr. Lussier is alleged to have electronically transferred $1.1 million from the joint account he created with Mrs. Fafard's name to his personal account. Mr. Lussier allegedly made three to six transfers to his personal account in a month. None of those transfers was authorized and "there is no business rationale why the Trust's funds were transferred to the Lussier Account," according to court documents.

It is also alleged Mr. Lussier hid the bank statements for the joint account he opened with Mrs. Fafard's name. When a statement was discovered, which noted transfers to his private account, a trustee of the company questioned Mr. Lussier. Mr. Lussier explained that his joint account was an account for Mrs. Fafard in Florida.

A day later, Mr. Lussier called in sick with the flu and later said he was being treated at UMass Memorial Medical Center. He never returned to work. Mrs. Fafard told police, according to court documents, she did not remember opening a bank account with Mr. Lussier, and she never signed any bank signature cards. She said she didn't oversee the company accounts because "I trusted him."

Mrs. Fafard stated she had "no idea or involvement with Mr. Lussier's actions," according to a report filed by Milford police Detective Carlos Sousa.

Police were unable to reach Mr. Lussier, and FRE hired a private investigator who tracked Mr. Lussier to Paxton, where he was living with a roommate, only to learn they no longer lived there. A warrant was issued for his arrest on Oct. 31 and he was arrested last month.