Fraud Talk

Woman Charged With Embezzling $1 Million From Archdiocese of New York

2012-01-30T22:38:00.001-05:00

Anita Collins, 67, of the Bronx, New York, has been charged with embezzling more than $1 million from the Catholic Archdiocese of New York, where she had been employed as an accounts payable bookkeeper within its Department of Education Finance Office. According to authorities, over a 7 year period, Collins issued phony invoices and wrote at least 468 unauthorized checks from the Archdiocese's educational fund to "KB Collins" (initials for her son), ultimately for her own benefit. According to the prosecutor, Collins spent the stolen money on “a lifestyle that was not extravagant but was far beyond her lawful means." At least some of the stolen money was used to purchase expensive dolls adn other items. Reportedly, Collins previously pleaded guilty to criminal charges in fraud schemes at other New York employers in 1986 and 1999. She has reportedly confessed to the thefts.

Read the story here and here.

Elderly California Woman Charged With Embezzling More Than $300K From Trauma Counseling Concern

2012-01-30T22:06:00.000-05:00

Judy T. Gordon, 79, of San Marcos, California, has been charged with embezzling more than $300,000 from Trauma Intervention Programs National Inc., (TIPS), where she had served as longtime bookkeeper. According to authorities, over a period of at least 4 years, limited by statute, Gordon siphoned funds from the non-profit made up of volunteers who are called to emergency scenes to help family members in the wake of a sudden trauma, including death. Gordon's scheme reportedly involved the forgery of checks for her own benefit. She has been charged with embezzlement, grand theft and 31 counts of forgery.

Read the story here.

Default Judgement Entered Against North Carolina Woman & Former Police Chief Husband Accused Of Embezzling $411K From Dental Office

2012-01-30T21:56:00.000-05:00

A default judgment has been entered against Allison R. McKenzie, believed to be in her late 30s and Christopher T. McKenzie, believed to be in his early 40s, husband and wife, of Carthage, North Carolina for $411,000 allegedly embezzled from Dr. G.R Horton, a local dentist for which Allison had been employed. Christopher McKenzie resigned as Chief of the Carthage Police Department. She reportedly admitted to embezzling the funds over a period of "several years." According to media reports, the thefts began in February 2005 and continued for more than 6 years until she was fired in June 2011. Christopher resigned his position in July 2011. At this time, no criminal charges have been filed against either party.

Read the story here and here.

Hat tip: FraudTalk reader Joe.

New Jersey Woman Arrested For Allegedly Embezzling $130

2012-01-30T21:26:00.001-05:00

Melissa Covey, 42, of Bridgewater, New Jersey, has been arrested on charges she embezzled some $130,000 in computer-related equipment from Quintum Technologies, LLC for whom she had been employed as a buyer. According to authorities, Covey allegedly ordered equipment from vendors through Quintum's purchase accounts and then submitted fictitious purchase orders so the purchases appeared to be for legitimate business. Covey would then sell the items to various third parties through Ebay and keep the profit. If convicted, Covey faces up to 10 years in state prison.

Read the story here, here and here.

Oklahoma Woman Charged With Embezzling More Than $200K

2012-01-30T21:13:00.000-05:00

Pamela Gibson Matthews, 51, of Lone Grove, Oklahoma, has been charged with embezzling more than $200,000 from Day Concrete & Block Co. where she had been employed. According to authorities, Matthews admitted to taking the funds for her own use and apologized when she was confronted by her employer.

Developing...

Read and view the story here.

Former Pennsylvania Paralegal Who Faked Kidnapping, Sentenced For Embezzling More Than $1 Million

2012-01-30T21:04:00.000-05:00

Bonnie Sweeten, 40, of Feasterville, Pennsylvania, has been sentenced to 8 years in prison for embezzling more than $1 million, including $640,000 from an unnamed Bucks County-based law firm where she had been employed. Sweeten faked her own kidnapping in 2009, ultimately turning up in Disney World with her daughter. Sweeten also allegedly claimed she had a law degree. Sweeten was originally charged in May 2010 with wire fraud, mail fraud, bank fraud, aggravated identity theft, misuse of a passport, lying to federal official and money laundering. The embezzlement reportedly occurred over a period of at least 4 years, from 2005 and 2009. Sweeten reportedly spent the ill-gotten gains on clothing, jewelry, tanning salons, gym usage, electronics and mortgage payments.

Read the story here, here, here and here.

Hawaiian Banker Pleads Guilty To Embezzling $2.6 Million

2012-01-30T20:43:00.000-05:00

Lani-Ann M. Miho, 52, of Hilo, Hawaii, pleaded guilty to charges she embezzled more than $2.68 million from First Hawaiian Bank, where she had been employed as a longtime manager. According to prosecutors, over a period of more than 10 years, from July 2000 to September 2010, Miho siphoned funds from the bank by creating at least 56 phony client accounts, withdrawing funds and using proceeds from recently opened accounts to pay balances due on earlier accounts. Miho then used her position to keep track of the accounts and pay them before they became delinquent, ultimately converting the funds to her own benefit. A total of $2,683,494.13 was reportedly embezzled by Miho. She has reportedly repaid $2 million of the funds she embezzled. Miho had been an employee of the bank for 29 years. Her attorney claimed that Miho was "diagnosed with a psychological disorder which played a prominent role in this problem."

Read the story here, here and here.

Read the DOJ announcement here.

Note: this is the second major embezzlement of 2012.

California Woman Accused Of Embezzling More Than $100K From Auto Dealership

2012-01-30T17:24:00.000-05:00

Lizeth Guadalupe Ochoa, 35,of San Diego, California, has been accused of embezzling more than $100,000 from Drew Ford where she had been employed as telecommunications director. According to authorities, over a "significant period of time," Ochoa siphoned funds from the dealership "using some techniques that were challenging for police and for staff to recognize." She has been a 13 year employee of the company. Bail was set at $1 million.

Developing...

Read the story here, here and here.

Oklahoma Woman Accused Of Embezzling $126K From Animal Hospital

2012-01-30T17:04:00.000-05:00

Tammy Lou Daniels, 42, of Elgin, Oklahoma, has been accused of embezzling more than $126,000 from the Beavers Animal Hospital where she had been employed as office manager. According to reports, over a period of nearly 7 1/2 years, from July 2003 to December 2010, Daniels siphoned funds from the veterinary facility. A total of $126,151.78 is alleged to have been embezzled by Daniels. Full details of the case have not been released.

Developing...

Read the story here and here.

Arizona Woman To Face Trial For Allegedly Embezzling $270K From Shopping Center

2012-01-29T18:25:00.000-05:00

Holly Faye Youvella, 33, of San Carlos, Arizona, will face trial on March 6, 2012 for allegedly embezzling about $270,000 from the Peridot Shopping Center, Inc. which is owned by the San Carlos Tribal Organization, where she had been employed as a bookkeeper. Youvella was originally indicted on October 25, 2011. According to prosecutors, over a period of about 2 years, from October 15, 2008 to March 18, 2010, Youvella cashed approximately 237 fraudulent checks totalling drawn from the shopping center’s checking account and made out to herself or a member of her family. Prosecutors alleged that Youvella stole an additional $4,301 from the shopping center by making fraudulent electoronic funds transfers between June 18, 2010 and August 5, 2010.

Read the story here and here.

Read the DOJ announcement of her indictment here.

California Attorney Pleads Guilty To Embezzling $112K From Client Trust Account

2012-01-29T18:10:00.001-05:00

Patricia A. Gregory, believed to be 61, of Carlsbad, California, has pleaded guilty to embezzling $112,000 from two client trust accounts According to authorities, Gregory withdrew the funds from the client's account to which she was not entitled. Specifically, she pleaded guilty to one felony count of embezzlement, one misdemeanor count of embezzlement and a misdemeanor count of practicing law without a license. Gregory's law license has been suspended, and she has been recommended for disbarment. The misappropriations occurred during 2008.

Read the story here and here.

Affinity Fraud: Fleecing the Flock - The Economist

2012-01-26T12:28:00.000-05:00

Read this article in the Economist about affinity Ponzi Schemes featuring Marquet International data.

New Mexico Woman Under Investigation For Alleged Embezzlement Of More Than $200K From Convention Center

2012-01-23T15:33:00.000-05:00

Debbie Dusenbery, 41, of Farmington, New Mexico, is under investigation by the Farmington Police Department for allegedly embezzling more than $200,000 from the Farmington Convention and Visitors Bureau where she had served as Executive Director. According to reports, Dusenbery resigned from her position last week and sent a check for $100,000 to authorities, presumably as a form of restitution. Farmington police have seized Dusenbery's computers and financial documents. Dusenbery reportedly made at least two unauthorized transactions each month to pay her personal creditors. According to the police, Dusenbery spent the misappropriated funds to pay for "a MacBook computer, numerous extravagant trips for friends and family members to Miami, Las Vegas and the Cayman Islands, and to purchase a guided elk hunt for her boyfriend and another friend." For her part, Dusenbery has claimed she suffers from cancer, but plans on "doing the right thing," with respect to paying back the agency. According to her LinkedIn profile, Dusenbery has been employed by the agency since 1995. She supposedly studied accounting at the University of New Mexico.

Read the story here and here.

West Virginia Woman Pleads Guilty To Embezzling $269K From County Library

2012-01-22T21:37:00.000-05:00

Marli Jenkins, 43, of Taylor County, West Virginia, pleaded guilty to embezzling some $269,000 from the Taylor County Public Library where she had served as head librarian. According to authorities, over a period of at least 3 years, from 2007 to 2010, Jenkins abused library credit card accounts for her own benefit. Specifically, Jenkins pleaded guilty to felony embezzlement, falsifying accounts, and fraudulent use of an access device.

Read the story here.

Former Head Of Michigan Charity For The Poor Charged With Embezzling $140K From The Non-Profit

2012-01-22T20:48:00.001-05:00

Mary Lee Flohe, 69, of Elmwood Township, Michigan, has been charged with embezzling some $140,000 from the Society of St. Vincent de Paul, a non-profit that serves the poor, where she had served as president. Authorities allege that over at least a five year period, from 2005 to 2010, Flohe "used charity funds to pay personal bills, gave herself a $10,000 retirement bonus and cut thousands of dollars in checks to family and friends." The scheme, in which Flohe wrote numerous checks for her own benefit, came to a head in June 2011, when an investigation was announced.

Read the story here and here.

South Dakota Man Sentenced For Embezzling $145K From Cancer Treatment Center

2012-01-22T20:32:00.000-05:00

Terry Ryan Portra, 46, of Sioux Falls, South Dakota, has been sentenced to 15 years in state prison for embezzling some $145,000 from the McHale Institute, a local cancer treatment center, where he had been employed. According to authorities, over a period of 3 years, from January 2008 to January 2011, Portra siphoned funds from the heathcare concern. He reportedly spent the funds to "maintain a lavish lifestyle, purchasing day spa trips for himself and his wife, and to pay off debts from a previous bankruptcy." Portra, who plead guilty to aggravated theft last October, was also ordered to pay full restitution.

Read the story here and here.

Former New York Real Estate Attorney Suspected Of Embezzling As Much As $28 Million

2012-01-22T19:03:00.001-05:00

Douglas R. Arntsen, 34, of Staten Island, was in court in New York City on charges he embezzled as much as $28 million from law firm clients of his while an attorney at Crowell and Moring. Arntsen was originally suspected of the misappropriations in September 2011 after he vanished as was later arrested in Hong Kong, from which he was extradited back to New York. Authorities allege Arntsen siphoned large sums of funds by making transfers from client escrow accounts for his own benefit. One such client, Regal Real Estate, is reported to have lost about $5.5 million which the law firm has reimbursed. Arntsen had been with the firm since February 2007. Prosecutors allege that from April 2010 through September 2011, Arntsen misappropriated about $7 million in this fashion. He is now being investigated for embezzling another $21 million.

Read the story here, here and here.

This one will definitely make the top 10 list for the year!

California Woman Pleads Guilty To Embezzling More Than $500K From Clients Of Real Estate Firm

2012-01-22T18:37:00.001-05:00

Louisa Katrina Dubinsky, 54, of Hollister, California, has reached a plea agreement with prosecutors over charges stemming from her alleged embezzlement of more than $500,000 from clients of her real estate firm, Vision Lending and Investment. Dubinsky was originally arrested in February 2011, even though original charges were filed in 2009. According to authorities, during 2007, Dubinsky wrote at least 39 bad checks to clients, instead using funds for her own benefit. Dubinsky was charged with embezzlement, financial elder abuse and writing bad checks.

Read the story here, here and here.

Texas Man Pleads Guilty To Embezzling $150K From Union

2012-01-22T18:21:00.000-05:00

Ronald Witt, 65, of Galveston, Texas, has pleaded guilty to embezzling $150,203 from International Union of Operating Engineers Local 450, where he had served as business manager. Witt and his wife, Anita Witt, 56, were accused in July 2011 of pilfering funds by making unauthorized charges from the union for their own benefit, to pay for luxury trips and to remodel their home, among other personal expenses. Anita Witt had been employed as financial secretary for the union.

Read the story here, here and here.

California Woman Accused Of Embezzling $150K From Agribusiness

2012-01-22T18:05:00.000-05:00

Michelle Lem, 42, of Salinas, California, has been arrested on charges she embezzled some $150,000 from International Produce Group, a local agribusiness, where she had been employed as office manager. According to authorities, over a period of nearly a year and a half, from January 2010 until May 2011, Lem used company credit cards to pay for personal expenses or otherwise for her own benefit. Lem has served as office manager for the company for 9 years. Police seized a number of items at her home when she was arrested, included electronics, a washer and dryer and a large gun safe, among others.

Read the story here and here.

Read the police report announcement here.

New Jersey Man Pleads Guilty To Embezzling $10.4 Million From Investment Firm

2012-01-22T17:46:00.001-05:00

David Newmark, 39, of Towaco, New Jersey, pleaded guilty to embezzling more than $10.4 million from Columbus Hill Capital Management LP, where he had been employed as chief financial officer. According to prosecutors, over a period of over 3 years, from February 2008 to March 2011, Newmark siphoned funds from the firm by depositing monies to a phony account he created for his own benefit. Newmark pleaded guilty to wire fraud and tax evasion charges and is due to be sentenced on April 24, 2011. Prosecutors said Newmark had a serious gambling problem.

Read the story here and here.

This one is a good candidate for the top 10 of the year...

Minnesota Man Accused Of Embezzling $250K From Church Synod

2012-01-22T17:30:00.000-05:00

Robert Duane Larson, believed to be 60 years old, of Wolverton, Minnesota, has been accused of embezzling some $250,000 from the Northwestern Minnesota Synod of the Evangelical Lutheran Church in America where he had served as bookkeeper since September 2004. According to reports, over a period of 8 years, from 2004 thorugh 2011, Larson wrote numerous checks to himself and his wife from the synod's non-profit Rural Life Outreach program for which he had served as financial manager.

Read the story here and here.

Vermont Woman Sentenced For Embezzling $230K From Artist

2012-01-22T17:11:00.001-05:00

Pamela Ann Natoli, 54, of Benson, Vermont, was sentenced to 21 months in federal prison for embezzling some $230,000 from Frances Bull, a local artist and the owner of the Gallery in the Field, for whom she had been employed as a personal assistant. According to authorities, over the course of 3 years, from November 2006 through October 2009, Natoli wrote numerous checks to pay for personal debts or otherwise for her own benefit.

Read the story here and here.

Read the DOJ announcement here.

2011 Marquet Report on Embezzlement Released

2012-01-17T15:28:00.006-05:00

The 2011 Marquet Report on Embezzlement has been released. Some of the highlights:

2011 was another banner year for employee theft in the United States, continuing the frenetic pace set in 2010. In this report, we identified, researched and analyzed the details of 473 major embezzlement cases in the US active in 2011, a slight 2% decrease in the number of cases from 2010.

Vermont had the highest Embezzlement Propensity Factor followed by Connecticut, Pennsylvania, Montana, Virginia, Iowa and Idaho – identifying these states as having the highest risk for loss to embezzlement in 2011.

The financial services industry suffered the greatest losses due to major embezzlements.

Non-profits and religious organizations combined accounted for about one-sixth of all the major embezzlement incidents in the 2011 study.

The average loss for 2011 was about $750,000; the median loss was $340,000.

Nearly three-quarters of the incidents (72.3%) were committed by employees who held finance/ bookkeeping & accounting positions.

The average scheme lasted nearly 5 years.

The most common embezzlement scheme involved the issuance of forged or unauthorized company checks.

Read the whole study here.

Read some of the articles about these statistics:
Marketwatch, 1.17.12
Burlington Free Press, 1.17.12
Green Mountain Daily, 1.18.12
SecurityInfoWatch, 1.19.12
Inc. magazine, 1.18.12
Forbes.com, 1.17.12
Accounting Today, 1.17.12
Banker & Tradesman, 1.18.12
The Going Concern, 1.18.12
The Fiscal Times, 1.19.12
The Day, 1.19.12
The Ethical Advocate, 1.18.12
VermontBiz.com, 1.17.12
Security Magazine, 1.17.12
KYC360, 1.19.12
Hartford Business Journal 1.23.12

Kentucky Man Arrested & Charged With Embezzling $220K

2012-01-17T02:12:00.000-05:00

Kevin D. Gettings, 34, of Russellville, Kentucky, has been arrested and charged with embezzling more than $222,000 from Gerald Printing, where he had been employed as a sales representative. According to authorities, beginning in October 2004, Gettings bilked his employer by having some clients pay invoices to a phony entity he controlled called "Printers Ink" for his own benefit.

Read the story here.

Nevada Woman Sentenced For Embezzling $1 Million From Friend's Business

2012-01-17T02:03:00.000-05:00

Carolyn Sue Causey, known as "Super Sue," 62, of Sparks, Nevada, has been sentenced to 10 years in prison for embezzling nearly $1 million from ERA Realty, owned by her friend, Pat Schweigert. According to authorities, over a period of about 4 years, between 2007 and 2010, Causey siphoned the funds from the company by issuing fraudulent checks, doctoring accounting logs and creating bogus accounts and payments for her own benefit. Causey reportedly stole the money to support a gambling addiction. In addition to the prison time, Causey has been ordered to pay $479,364 in restitution.

Read the story here and here.

Tennessee Man Arrested & Charged With Embezzling More Than $600K From Vanderbilt University

2012-01-17T01:50:00.000-05:00

Jason Hunt, 34, formerly of Nashville, Tennessee, has been arrested and charged with embezzling more than $600,000 from Vanderbilt University where he had been employed as manager of administrative services for the law school. According to authorities, over a period of as many as six years, Hunt siphoned funds from the educational institution. Hunt, who was also an owner of the Nashville Pride, reportedly left Vanderbilt abruptly last November and moved to Mexico with his partner, Cole Wakefield, where the two co-owned and operated a night club called Crema. Hunt was arrested in Arkansas. Further details about the nature of the embezzlement have not yet been disclosed.

Read the story here and here.

California Man Pleads Guilty To Stealing Nearly $1 Million In Rare Coins From Colorado Museum

2012-01-17T01:40:00.000-05:00

Wyatt Yeager, 33, of Martinez, California, has pleaded guilty to charges he embezzled nearly $1 million in rare coins from the American Numismatic Association Money Museum located in Colorado Springs, Colorado. According to authorities, over a several month period in 2007, Yeager stole coins from the museum and sold them at several auctions that year. He plead guilty to one count felony of theft of major artwork.

Read the story here.

California Woman Pleads Guilty To Charges She Embezzled $200K From Bed & Breakfast

2012-01-17T01:32:00.002-05:00

Denise Ann Conophy, 51, of Calistoga, California, has pleaded guilty to charges she embezzled more than $200,000 from an unnamed 80-year-old woman and her bed and breakfast inn, for whom she handled her bookkeeping and finances. According to authorities, over a 7 year period, Conophy systematically transferred the victim's assets to various accounts and used them to pay her personal bills as well as to start up an Internet business she was operating. Conophy, who plead guilty to embezzlement, elder abuse and tax evasion, will be sentenced to 16 months and prison and has been ordered to pay $300,000 in restitution.

Read the story here.

Hat tip: FraudTalk reader Joe.

Nevada Woman Accused Of Embezzling More Than $700K From Medical Practice

2012-01-17T01:25:00.000-05:00

Gretchen Swope, 65, of Reno, Nevada, has been accused in a civil action filed by Reno Emergency Physicians Association of embezzling more than $700,000 from the practice for which she and her firm, Medical Billing Inc., handled the finances. According to the suit, Swope, aided by her husband, Karl Swope and Brian Fairchild, both officers of Medical Billing, Inc., bilked the medical practice out of the funds over a period of about 12 years, beginning in 1999, by transferring funds to bank accounts the defendants controlled for their own benefit. The alleged misappropriation was discovered through an audit conducted last Fall. The civil suit seeks $1.5 million in damages.

Read the story here and here.

North Carolina Man Charged With Embezzling $136K From Church

2012-01-17T00:49:00.000-05:00

Robert Garland Lahr, 49, formerly of Knightdale, North Carolina, has been charged with embezzling $136,324.58 from the Hayes Barton Baptist Church where he had served as administrator. According to authorities, over a period of about 5 years, beginning in 2006, Lahr used a church credit card to make personal purchases, manipulated his salary through payroll shenanigans and made unauthorized transfers from church accounts for his own benefit.

Read the story here and here.

Former Executive With Mall Owner In Florida Accused Of Embezzling $300K

2012-01-17T00:41:00.000-05:00

Lynnette Lauria, 59, of Clermont, Florida, has been accused in a civil action of embezzling some $300,000 from mall owner, Simon Property Group, Inc., where she had been emplyed as regional vice president of marketing for Florida and Puerto Rico. The case, filed in federal court in Florida last year (case no. 11-cv-01598), alleges that Lauria conspired to commit fraud when she awarded contracts and invoiced Simon for a variety of services that were never performed by entities created by herself and family members. Lauria has not yet been charged criminally.

Read the story here.

Former Receptionist In Illinois Sentenced For Embezzling More Than $100K

2012-01-17T00:28:00.001-05:00

Erica Salgado, 24, of Montgomery, Illinois, has been sentenced to four years in prison for embezzling $102,690 from Rental Homes, Inc. where she had been employed as a receptionist. According to authorities, over a 13 month period, beginning April 14, 2009 and continuing through May 23, 2010, Salgado wrote herself at least 80 unauthorized checks and forged the owner's signature for her own benefit. She reportedly spent some of the money purchasing designer purses and other luxury items. Salgado has also been ordered to pay full restitution.

Read the story here.

Read the DuPage County prosecutor's announcement here.

Charges Dropped Against Wisconsin Woman Accused Of Embezzling $300K

2012-01-17T00:19:00.000-05:00

Debra Gear, 47, of Appleton, Wisconsin, who was accused of embezzling more than $300,000 from Thrivent Financial for Lutherans, has had the charges dropped after agreeing to make full restitution. Gear allegedly misappropriated the funds over a period of nearly 2 years, from July 2009 and May 2011. Authorities alleged that Gear added false claims to customers' accounts, and then had a relative transfer the money to her own bank account. Gear claimed she began stealing to pay her bills after she developed a gambling habit.

Read the story here.

Hat tip: FraudTalk reader, Joe.

Former Oregon Banker Sentenced For Embezzling $146K From Credit Union

2012-01-17T00:10:00.000-05:00

Lenora Colburn, 49, of Eugene, Oregon, has been sentenced to one year of home detention for embezzling about $146,000 from the SELCO Community Credit Union, where she had been employed as supervisor and assistant manager. According to authorities, over a period of 8 years, from 2003 through 2011, Colburn siphoned funds from the credit union, concealing the thefts by creating phony cash transactions, rigging internal audits and manipulating balances in cash drawers and vaults. Colburn, who has reportedly been diagnosed as a "pathological gambler," a factor which apparently contributed to her embezzlement, has also been ordered to pay restitution, perform 600 hours of community service and is barred from entering a casino. Colburn was originally charged last year in the case and plead guilty in November 2011.

Read the story here and here.

Another unfortunate weak sentence....

California Woman Arrested For Embezzling More Than $100,000 From Auto Dealership; Prosecutors Decline To File Charges

2012-01-17T00:00:00.000-05:00

Lizeth Guadalupe Ochoa, 35, of Mission Valley, California, who was arrested last week on suspicion of embezzling more than $100,000 from Drew Ford where she had been employed "in a financial capacity," will not be charged. According to authorities, Ochoa who was suspected of siphoning funds from the dealership where she had been employed for 13 years, "over a significant time period." However, prosecutors have decided not to file charges against Ochoa for unspecified reasons, other than to say that the cases did not meet their prosecutorial standards. Details of the alleged embezzlement have not yet been released.

Read the story here and here.

Former Mississippi Banker Sentenced For Embezzling $144K

2012-01-16T23:49:00.000-05:00

Lisa Brooks, 45, of Gulfport, Mississippi has pleaded guilty to and been sentenced to 2 years in prison for embezzling nearly $144,000 from Hancock Bank, where she had been employed as an adjuster. According to authorities, over a period of 2 years, from October 2006 to October 2008, Brooks diverted payments made to the bank for her own benefit. She has been banned from working in the financial industry and ordered to perform 100 hours of community service. It should be noted that Chief U.S. District Judge Louis Guirola Jr., who presided over this case, also presided over the case involving a $3.4 million embezzlement from Hancock Bank a couple of years ago perpetrated by Margaret M. Migues and Willie Doris Burney.

Read the story here and here.

Hat tip: FraudTalk reader Joe.

Elderly Virginia Attorney Sentenced For Embezzling More Than $1 Million From Clients

2012-01-16T20:17:00.000-05:00

William Orr Smith, 72, of Henrico County, Virginia, has been sentenced to 3 years in prison for embzzling $1,065,327.10 from his clients at Montbrook Title LLC. According to authorities, beginning in 2005 and continuing for 5 years, Smith siphoned funds from client mortgage and foreclosure accounts using "hundreds of illegal transfers." Smith has lost his law license and been ordered to pay full restitution.

Read the story here.

North Carolina Attorney Indicted On Charges She Embezzled $1.13 Million From Clients

2012-01-16T19:09:00.000-05:00

Jennifer Lynne Green-Lee, 39, of Raleigh, North Carolina, an attorney, has been indicted on charges she embezzled some $1.13 million from her legal clients. According to reports, between March and May 2011, Green-Lee siphoned the funds from client accounts for her own benefit. Some $244,075.52 was allegedly stolen from Golden Properties and Development, Inc., a local contracting company, in three separate transactions. Green-Lee has been suspended from practicing law pending the outcome of the criminal proceedings. She has been indicted on 13 counts of felony theft by embezzlement.

Read the story here and here.

Former Rockstar's Groundskeeper Sentenced For Embezzling $287K

2012-01-16T18:57:00.000-05:00

Eric Hosmer, 44, of North Incline Village, Nevada, has been sentenced to six months in prison for embezzling some $287,000 from David Coverdale, the founder of the rock band, Whitesnake, and his wife, Cindy Coverdale. According to authorities, over a period of about one year, Hosmer routinely submitted fraudulent invoices for payment to Coverdale's accounting firm. The thefts were discovered last March. Hosmer reportedly owns multiple properties in the Incline Village are of North Lake Tahoe, Nevada.

Read the story here.

Read the Washoe County Sheriff's announcement here.

Illinois Man Pleads Guilty To Embezzling $122K From Credit Union

2012-01-16T18:37:00.000-05:00

Thomas A. Miles, 42, of Roscoe, Illinois, has pleaded guilty to charges he embezzled more than $122,000 from the Rock Valley Federal Credit Union where he had been employed as collections supervisor. According to authorities, over the course of nearly 3 years, from October 2007 to August 2010, Miles fraudulently converted at least 163 checks paid by delinquent bank customers for his own benefit.

Read the story here.

Former Police Union President In Florida Charged With Embezzling $200K

2012-01-09T17:51:00.000-05:00

Vernell Reynolds, 46, of Hollywood, Florida, has been charged with embezzling some $200,000 from the Miami Community Police Benevolent Association where she had served as president. According to authorities, over a period of nearly 2 years, from at least September 2008 through June 2010, Reynolds pilfered funds from union accounts for his own benefit. Some of the withdrawals were made at casinos in Florida and California. Reynolds, who was a former police officer with the Miami PD, also made improper transfers of funds from union accounts to her own personal accounts. She has been charged with 16 counts of wire fraud.

Read the story here.

Hat tip: FraudTalk reader Joe.

Michigan Woman Sentenced For Embezzling $600K

2012-01-09T14:24:00.000-05:00

Janice Branderhorst, 48, of Holland, Michigan, has been sentenced to 13 months in prison for embezzling nearly $600,000 from Focus Properties where she had been employed as administrative assistant. According to authorities, over a period of about 12 years, from 1999 through 2012, Branderhorst wrote at least 427 checks drawn on company coffers for her own benefit. Branderhorst also agreed to pay restitution in the amount of $380,000.

Read the story here and here.

Georgia Realtor Sentenced For Embezzling $160K From Firm

2012-01-09T14:13:00.000-05:00

Andrew Lee Loftis, 40, of Athens, Georgia, has been sentenced to 48 months in prison followed by 15 years probation for embezzling about $160,000 from Keller Realty Greater Athens where he had been employed as office manager. According to authorities, over a period of nearly 2 years, from November 2007 through August 2009, Loftis transferred company funds from the agency to his own accounts "because he didn’t want to lose the lifestyle he had." Loftis was originally indicted in July 2010, after he left Keller Realty to form his own firm known as Loftis Holdings.

Read the story here and here.

Former Satellite Radio Bookkeeper Pleads Guilty To Embezzling More Than $900K

2012-01-09T13:52:00.001-05:00

Brenda L. Jones, 46, of Lothian, Maryland, has pleaded guilty to embezzling more than $908,000 from Sirius XM Radio where she had been employed as a bookkeeper handling accounts payable. According to authorities, over a period of more than one year, from 2005 through 2006, Jones diverted vendor payments for her own benefit. Another Sirius employee, Valencia P. Person allegedly was the beneficiary of some of the funds diverted by Jones. The two were sued in a civil action in November 2010 by Sirius XM Radio which won a judgment for $2,143,893 plus costs, against the women to recover losses caused by the defalcation.

Read the story here and here.

Read the DOJ announcement here.

Wisconsin Woman Pleads Guilty To Embezzling $105K From Social Service Agency

2012-01-09T12:46:00.000-05:00

Mildred Horvath, 64, of Milwaukee, Wisconsin pleaded guilty to charges she embezzling about $105,000 from Social Rehabilitation and Residential Resources where she had served as executive director. According to authorities, over a period of about 2 years, from 2008 through 2010, Horvath transferred funds intended to go to clients for Social Security payments for disabilities and supplemental payments. She then used the money for her own benefit. As part of the plea agreement, Horvath must also pay restitution. This is not the first time Horvath has come to the attention of authorities for questionable financial transactions. In 2004, a state audit showed another organization, for which Horvath served as chief financial officer, was paid more than $375,000 in state funds for services that were never provided. However, she was never accused of any wrongdoing in those circumstances.

Read the story here, here and here.

Colorado Man Gets Probation After Embezzling $815K From Non-Profit

2012-01-09T12:26:00.001-05:00

Long Khong, believed to be 41, of Denver, Colorado, has been sentenced to just five years of supervised release for embezzling more than $815,000 from the Colorado Association of School Executives where he had been employed as manager of business services. Prosecutors alleged that over a period of about 7 years, from 2001 to 2008, Khong siphoned funds from the non-profit by abusing association credit cards. The court also ordered Khong, a Vietnamese refugee, to get a job and set aside at least 25 percent of his salary to pay restitution. He must also continue with gambling-addiction therapy and cannot place any bets.

Read the story here.

Illinois Woman Sentenced For Embezzling $921K From Doctor's Office

2012-01-09T11:55:00.001-05:00

Flora Buckingham, 70, of Granite City, Illinois, has been sentenced to 28 months in prison for embezzling some $921,000 from Ahmad and Rana Pediatrics, Ltd., where she had been employed as an office manager. Prosecutors alleged that over a six and a half year period, from May 2004 to November 2010, Buckingham wrote numerous checks from the healthcare concern to pay personal bills and otherwise for her own benefit. She has also been ordered to pay restitution in the amount of $921,041. Buckingham had plead guilty last September to one count of mail fraud.

Read the story here, here, here and here.

Hat tip: FraudTalk reader Joe.

Michigan Pastor, Wife, Accused Of Looting Church As Much As $230K

2012-01-09T11:38:00.000-05:00

Arthur Lee Pearson, 38, of Grand Rapids, Michigan, has been accused of looting the church he ran as pastor, Pilgrim Rest Baptist Church, out of as much as $237,000. Authorities allege that Pearson and his wife, Gwendolyn Pearson, who served as bookkeeper at the church, used church funds for their own benefit, specifically to purchase personal items using checks and credit cards of the church. Meanwhile the church as filed a civil lawsuit against Pearson to recover the monies. Pearson has served as pastor for 3 1/2 years.

Read the story here, here and here.

California Woman Pleads Guilty To Embezzling As Much As $241K

2012-01-09T09:40:00.000-05:00

Stephanie Yost, 39, of Tulare, California, has pleaded guilty to charges she embezzled between $120,000 and $241,000 from Faulkner Trucking where she had been employed in what is believed to be a bookkeeping capacity. According to authorities, over a period of at least one year, from April 2004 to April 2005, Yost prepared duplicate payroll checks for herself and two co-defendants, Vickie Ann Kyle and Dustie Denise Levine, former a secretary and billing clerk, respectively. Specifically, Yost plead guilty to six counts of wire fraud as well as conspiracy to commit wire fraud.

Read the story here and here.

Hawaii Man Sentenced For Embezzling $284K

2012-01-09T09:20:00.000-05:00

Scott Kamiya, 34, of Honolulu, Hawaii, has been sentenced to 33 months in prison for embezzling more than $284,000 from an unnamed family trust for which he had been employed as bookkeeper. According to authorities, over a 5 year period, from 2005 to 2010, Kamiya siphoned funds from the trust by (1) altering checks to make them payable to himself or his business entities, (2) depositing checks made payable to the trust into his own personal or business accounts, by forging endorsements of the trustee, and (3) initiating online transfers to pay his own personal and business expenses. Kamiya made at least 107 such fraudulent transactions. Kamiya was a local realtor and also had served on the board of directors of the Honolulu Board of Realtors, according to media reports. He was also ordered to pay restitution in the amount of 284,219.31.

Read the story here.

Illinois Woman Charged With Embezzling More Than $1 Million From Beverage Company

2012-01-08T16:10:00.000-05:00

Linda Bessert, 48, of Winnebego, IL, has been charged with embezzling $1.05 million from Wirtz Beverage where she had been employed as an office manager. According to authorities, over a six year period, from 2004 until October 2010, Bessert misappropriated cash receipts meant to be delivered by armored car to the bank for deposit. Bessert has been charged with state felony charges including one count of theft, one count of theft of more than $1 million, and one felony count of theft of more than $500,000.

Read the story here and here.

Hat tip: FraudTalk reader Joe.

DC Council Member Charged With Embezzling $350K

2012-01-08T15:55:00.000-05:00

Harry Thomas Jr., 51, of Washington, DC, has been charged by federal authorities with embezzling more than $350,000 in government funds from the District of Columbia where he had been serving as a Council Member. Federal authorities allege that Thomas funnelled government funds, intended for youth sports programs, through intermediaries to pay for personal expenses that included an Audi sport-utility vehicle and golf trips. Thomas, who has been charged with theft of federal funds and tax evasion, resigned his position after the allegations were made public. The misappropriation allegedly ocurred over a nearly 2 year period, from April 2007 to February 2009 and totalled $353,500.

Read the story here and here.

Read the charging document here.

Louisiana Woman Charged With Embezzling Nearly $200K From Local Housing Agency

2012-01-07T16:43:00.001-05:00

Sarah Robert, believed to be in her early 50s, of Church Point, Louisiana, has been charged by federal authorities with embezzling nearly $200,000 from the Church Point Housing Authority in Louisiana where she had served as executive director. According to prosecutors, Robert employed several schemes to siphon money from the agency. The principal scheme appears to have involved a vendor fraud variation whereby she phonied up invoices from legitimate vendors and was reimbursed for the fraudulent charges claiming she had paid them with personal funds. She also gave herself unauthorized bonuses and pay. The thefts occurred over a two year period between January 2009 and January 2011. Robert has been charged with one count of embezzlement of government money totaling $195,778. Another individual, Arthur Felix, has also been charged in the case. It is unclear how Felix aided and abetted Robert.

Read the story here.

Hat tip: FraudTalk reader Sara.

Happy New Year 2012

2012-01-01T14:56:00.000-05:00

May the New Year bring health, happiness and prosperity to our readers

Former California Resident Arrested For Embezzling $100K From Restaurant

2011-12-29T13:01:00.000-05:00

Michelle 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.

Church Secretary In Wisconsin Charged With Embezzling $217K

2011-12-29T12:45:00.001-05:00

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 here, here and here.

Hat tip: FraudTalk reader Joe.

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

2011-12-29T12:31:00.000-05:00

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

2011-12-29T12:20:00.000-05:00

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 conspired with Lee Sadek, 37, of West Bloomfield, Michigan and formerly an employee of the MGM casino in Detroit, to hide the thefts. 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.

Read the story here.

Happy Holidays From FraudTalk

2011-12-23T15:06:00.000-05:00

Dear FraudTalk Readers:

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

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

2011-12-22T23:05:00.001-05:00

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

2011-12-22T18:59:00.000-05:00

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

2011-12-22T18:54:00.000-05:00

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

2011-12-22T18:22:00.001-05:00

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.

Wisconsin Woman Accused Of Embezzling $100K

2011-12-22T17:44:00.002-05:00

Christine Swan, 48, of Oneida County, 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.

Massachusetts Woman Sentenced For Embezzling $350K To Finance Lifestyle

2011-12-22T14:10:00.001-05:00

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

2011-12-22T10:49:00.000-05:00

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

2011-12-22T01:12:00.000-05:00

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.

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

2011-12-22T00:57:00.000-05:00

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.

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

2011-12-21T19:28:00.000-05:00

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 here, here and here.

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

2011-12-21T18:17:00.002-05:00

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

2011-12-21T17:59:00.000-05:00

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.

Washington State Man Sentenced For Embezzling More Than $165K

2011-12-14T09:49:00.001-05:00

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

2011-12-14T09:34:00.001-05:00

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.

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

2011-12-13T10:18:00.002-05:00

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

2011-12-13T09:46:00.000-05:00

Terri 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.

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

2011-12-12T18:52:00.000-05:00

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

2011-12-12T18:39:00.002-05:00

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

2011-12-12T18:31:00.000-05:00

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

2011-12-12T18:18:00.001-05:00

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

2011-12-12T17:51:00.000-05:00

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

2011-12-12T17:45:00.000-05:00

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

2011-12-12T17:37:00.000-05:00

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.

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

2011-12-12T15:52:00.001-05:00

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

2011-12-12T15:23:00.001-05:00

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

2011-12-12T15:09:00.000-05:00

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

2011-12-12T15:01:00.000-05:00

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.

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Ohio YMCA Reported Victim Of $100K Embezzlement Scheme

2011-12-12T14:55:00.000-05:00

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...

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

2011-12-12T14:45:00.000-05:00

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.

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

2011-12-12T14:24:00.001-05:00

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.

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Hat tip: FraudTalk reader Joe.

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

2011-12-12T14:09:00.000-05:00

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.

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Read the criminal complaint here.

Pennsylvania Man Charged With Embezzling $127K From Local Cinema

2011-12-11T23:13:00.000-05:00

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.

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

2011-12-04T13:11:00.000-05:00

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.

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

2011-12-04T12:52:00.001-05:00

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.

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

2011-12-04T12:40:00.000-05:00

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.

Arizona Woman Pleads Guilty To Embezzling $425K From Restaurant

2011-11-29T16:03:00.000-05:00

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

2011-11-29T15:53:00.000-05:00

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.

Utah Woman Pleads Guilty To Embezzling $152K From Bank

2011-11-29T15:39:00.000-05:00

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...

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

2011-11-28T14:11:00.001-05:00

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.

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

2011-11-26T16:37:00.000-05:00

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.