From eMissourian.com on 1/10/2015:
A Franklin County man who formerly operated a payroll services company in St. Louis County has been sentenced to more than four years in prison and ordered to pay more than $3 million in restitution for stealing from clients.
Bradley Ferguson, 48, Washington, was sentenced Wednesday by U.S. District Judge E. Richard Webber to 54 months in prison on federal mail fraud and money laundering charges. He pleaded guilty in August to the two felony charges in the case.
Defendants in federal criminal cases typically serve 85 percent of their sentence.
Judge Webber also ordered Ferguson to pay $3,067,137 in restitution to former clients, according to the U.S. attorney’s office.
Ferguson was facing a maximum 20-year sentence for mail fraud and five years for money laundering.
Ferguson owned Fenton-based Paymaster Business Solutions Inc. He is accused of withdrawing money from the bank accounts of business clients to pay federal, state and local taxes but did not make the payments.
He then withdrew more than $2.7 million from client accounts in 2013 in an attempt to cover the tax payments after IRS inquiries.
The U.S. attorney’s office said Ferguson’s clients included churches, youth organizations, child daycare facilities, law firms, and other businesses.
According to an indictment handed up by a federal grand jury, from January 2005 through January 2014, Ferguson drafted funds directly from Paymaster business clients’ bank accounts in order to pay their federal, state, and local tax liabilities. However, Paymaster, at Ferguson’s direction, failed to forward the Paymaster business clients’ funds to the taxing authorities in order to pay their tax liabilities.
Paymaster drafted in excess of $2,700,000 from Paymaster business clients’ bank accounts to pay clients’ federal, state, and local tax liabilities, as well as FICA liabilities, for the period July 2013 through December 2013, but were not forwarded to the proper taxing authorities, the indictment alleged.
Additionally, the indictment alleged that Ferguson, as power of attorney for Paymaster business clients, was contacted directly by the IRS and questioned as to the failure to pay clients’ federal tax liabilities. Ferguson did not tell his clients about the IRS inquiries. When clients occasionally learned that Paymaster had not forwarded their funds to the taxing authorities, Ferguson lied to them and told them Paymaster had made the payments, according to the indictment.
Finally, the indictment states that in December 2013, Ferguson retained the services of a commercial shredding company and directed that the Paymaster business client records be shredded and removed from the Paymaster offices.
...
Read the whole story here.
Showing posts with label mail fraud. Show all posts
Showing posts with label mail fraud. Show all posts
Tuesday, January 13, 2015
Friday, November 7, 2014
California Man Charged With Embezzling $300K In Vendor Fraud Scheme
From the Associated Press on 11/6/2014:
A former Fresno business executive has been charged with embezzling nearly $300K from a local business.
Anthony Lester, 51, was indicted by a federal grand jury on charges of mail fraud and money laundering. Lester was the former controller at Century Builders in Fresno, and later chief financial officer. During his employment, he also had access to the financial accounts of another Fresno business, Highlands Energy Services.
Lester is accused of diverting money from bank accounts and credit cards held by Highlands Energy Services into other financial accounts, including his own PayPal account, according to the U.S. Attorney Benjamin B. Wagner.
He is accused of embezzling about $300,000 from Highlands Energy Services.
According to the indictment, employees of the two companies questioned Lester about suspect payments to some vendors, including one called American Products, which was later found to be a fake company Lester invented to conceal the embezzlement, according to Wagner.
In fact, Lester attempted to make it appear American Products was a real company, according to Wagner, first visiting a local supply company near Fresno claiming to be from "Valley Builders," another fictitious company. Then he purchased weather stripping, dead bolts, spring hinges and thresholds, packaging the goods for delivery to Hilghlands and labeling them as coming from American Products in New York.
Lester is accused of sending the goods from a Fresno UPS facility.
The mail fraud charge could carry a maximum penalty of 20 years in prison, a $250,000 fine and three years of supervised release.
The money laundering charge could carry a maximum penalty of 20 years in prison, the larger of a fine of $500,000 or twice the value of the property involved and three years of supervised release.
A former Fresno business executive has been charged with embezzling nearly $300K from a local business.
Anthony Lester, 51, was indicted by a federal grand jury on charges of mail fraud and money laundering. Lester was the former controller at Century Builders in Fresno, and later chief financial officer. During his employment, he also had access to the financial accounts of another Fresno business, Highlands Energy Services.
Lester is accused of diverting money from bank accounts and credit cards held by Highlands Energy Services into other financial accounts, including his own PayPal account, according to the U.S. Attorney Benjamin B. Wagner.
He is accused of embezzling about $300,000 from Highlands Energy Services.
According to the indictment, employees of the two companies questioned Lester about suspect payments to some vendors, including one called American Products, which was later found to be a fake company Lester invented to conceal the embezzlement, according to Wagner.
In fact, Lester attempted to make it appear American Products was a real company, according to Wagner, first visiting a local supply company near Fresno claiming to be from "Valley Builders," another fictitious company. Then he purchased weather stripping, dead bolts, spring hinges and thresholds, packaging the goods for delivery to Hilghlands and labeling them as coming from American Products in New York.
Lester is accused of sending the goods from a Fresno UPS facility.
The mail fraud charge could carry a maximum penalty of 20 years in prison, a $250,000 fine and three years of supervised release.
The money laundering charge could carry a maximum penalty of 20 years in prison, the larger of a fine of $500,000 or twice the value of the property involved and three years of supervised release.
Saturday, November 1, 2014
Oklahoma Woman Convicted In $1 Million Embezzlement Case
From the Edmond Sun on 10/31/2014:
A federal jury has convicted a Jones woman on 36 counts related to the embezzlement of more than $1 million from her former employer, a court official said.
Western District of Oklahoma U.S. Attorney Sanford C. Coats said members of the jury deliberated only about two hours Thursday before finding Julie Ann Smith, of Jones, guilty on 36 counts of bank fraud, mail fraud, aggravated identity theft, forged securities and tax fraud in connection with embezzling the money from her former employer.
Coats said [Smith] is also known as “Julie A. Judkins” and “Julia A. Judkins Smith.”
The trial lasted two days. At sentencing, Coats said, Smith faces a prison sentence of up to 30 years for each bank fraud count, up to 20 years for each mail fraud count, up to 10 years for each forged securities count, up to three years for each false tax return count and a mandatory two-year prison term under the aggravated identify theft count.
Smith also could receive an additional $250,000 fine on each count. A sentencing date will be set by the court in about 90 days.
According to evidence presented at trial, Smith worked from 2000 until around late June 2012 at Power Equipment & Engineering Inc. (“PE&E”), in Oklahoma City. Smith was the accounts-payable clerk and officer manager, where she prepared checks and paid invoices for the company.
While employed at PE&E from June 2002 to June 2012, Smith forged about 195 PE&E checks by using the company owner’s signature stamp without PE&E’s permission or knowledge, evidence showed.
The forged checks totaled about $1,026,399.
In addition, evidence showed that Smith disguised the forged checks through false entries on PE&E’s accounting system and wrote many of the forged checks to a fake company under her control, evidence showed.
Evidence showed Smith directed other forged checks to credit card companies, financial institutions and vendors for her personal benefit. Smith filed materially false federal income tax returns from 2008-2012.
...
A federal jury has convicted a Jones woman on 36 counts related to the embezzlement of more than $1 million from her former employer, a court official said.
Western District of Oklahoma U.S. Attorney Sanford C. Coats said members of the jury deliberated only about two hours Thursday before finding Julie Ann Smith, of Jones, guilty on 36 counts of bank fraud, mail fraud, aggravated identity theft, forged securities and tax fraud in connection with embezzling the money from her former employer.
Coats said [Smith] is also known as “Julie A. Judkins” and “Julia A. Judkins Smith.”
The trial lasted two days. At sentencing, Coats said, Smith faces a prison sentence of up to 30 years for each bank fraud count, up to 20 years for each mail fraud count, up to 10 years for each forged securities count, up to three years for each false tax return count and a mandatory two-year prison term under the aggravated identify theft count.
Smith also could receive an additional $250,000 fine on each count. A sentencing date will be set by the court in about 90 days.
According to evidence presented at trial, Smith worked from 2000 until around late June 2012 at Power Equipment & Engineering Inc. (“PE&E”), in Oklahoma City. Smith was the accounts-payable clerk and officer manager, where she prepared checks and paid invoices for the company.
While employed at PE&E from June 2002 to June 2012, Smith forged about 195 PE&E checks by using the company owner’s signature stamp without PE&E’s permission or knowledge, evidence showed.
The forged checks totaled about $1,026,399.
In addition, evidence showed that Smith disguised the forged checks through false entries on PE&E’s accounting system and wrote many of the forged checks to a fake company under her control, evidence showed.
Evidence showed Smith directed other forged checks to credit card companies, financial institutions and vendors for her personal benefit. Smith filed materially false federal income tax returns from 2008-2012.
...
Wednesday, October 29, 2014
Former Manager of Rhode Island Insurance Company Charged With Embezzling $2.7 Million
From the Dispatch-Argus on 10/28/2014:
A former Rock Island insurance company manager has been federally indicted on fraud and money laundering charges totaling $2.7 million.
Dominic Giovanni Scodeller, 47, of Davenport, was arrested and made an initial appearance in U.S. District Court, Rock Island, on Tuesday, the same day federal records in the case were unsealed. Currently in the custody of federal marshals, he has a detention hearing scheduled this morning before Judge Sara Darrow.
On Oct. 21, a grand jury indicted Mr. Scodeller on 15 counts of fraud by radio, wire or television; money laundering; concealment; and mail fraud.
Mr. Scodeller was manager of purchasing and facilities for Bituminous Insurance Companies headquartered in Rock Island. He authorized BITCO payments to lessors for branch offices throughout the U.S., as well as for upgrades and construction work to its facilities, the indictment states.
Prosecutors allege that, from 2001 through May 2013, Mr. Scodeller developed a plan to defraud BITCO that started before he even was hired with lies about his academic record and lack of a criminal history during his job interview.
The indictment states that, once hired, Mr. Scodeller created "bogus entities" for fake corporations and bribed vendors and suppliers to pay him unauthorized kickbacks in exchange for BITCO business.
Mr. Scodeller allegedly set up mailing addresses and bank accounts for fake corporations -- such as "North Shores Group Properties," "Agility Business Resumption," "Secure Business Systems" and "AmyLyn Properties" -- that purportedly provided facilities and services to BITCO. He is accused of using the nonexistent entities as false fronts to bill BITCO for facilities and services while disguising his control and interest in the entities.
To convince BITCO the entities were real, Mr. Scodeller allegedly submitted bills for services he claimed the entities provided, then would sign off on the bills and pocket the funds.
With legitimate firms that provided services, Mr. Scodeller allegedly would bill BITCO for an inflated amount under the name of a bogus entity and keep the difference.
The indictment also says Mr. Scodeller engaged in monetary transactions of more than $10,000 "involving property derived from the scheme to defraud BITCO."
After an internal investigation, BITCO turned the matter over to FBI and IRS criminal investigations.
Each count of mail or wire fraud has a maximum penalty of up to 20 years in prison and a $250,000 fine. The money laundering counts are punishable by up to 20 years in prison and a maximum fine of $500,000 or twice the value of property involved in the transactions, whichever amount is greater.
A former Rock Island insurance company manager has been federally indicted on fraud and money laundering charges totaling $2.7 million.
Dominic Giovanni Scodeller, 47, of Davenport, was arrested and made an initial appearance in U.S. District Court, Rock Island, on Tuesday, the same day federal records in the case were unsealed. Currently in the custody of federal marshals, he has a detention hearing scheduled this morning before Judge Sara Darrow.
On Oct. 21, a grand jury indicted Mr. Scodeller on 15 counts of fraud by radio, wire or television; money laundering; concealment; and mail fraud.
Mr. Scodeller was manager of purchasing and facilities for Bituminous Insurance Companies headquartered in Rock Island. He authorized BITCO payments to lessors for branch offices throughout the U.S., as well as for upgrades and construction work to its facilities, the indictment states.
Prosecutors allege that, from 2001 through May 2013, Mr. Scodeller developed a plan to defraud BITCO that started before he even was hired with lies about his academic record and lack of a criminal history during his job interview.
The indictment states that, once hired, Mr. Scodeller created "bogus entities" for fake corporations and bribed vendors and suppliers to pay him unauthorized kickbacks in exchange for BITCO business.
Mr. Scodeller allegedly set up mailing addresses and bank accounts for fake corporations -- such as "North Shores Group Properties," "Agility Business Resumption," "Secure Business Systems" and "AmyLyn Properties" -- that purportedly provided facilities and services to BITCO. He is accused of using the nonexistent entities as false fronts to bill BITCO for facilities and services while disguising his control and interest in the entities.
To convince BITCO the entities were real, Mr. Scodeller allegedly submitted bills for services he claimed the entities provided, then would sign off on the bills and pocket the funds.
With legitimate firms that provided services, Mr. Scodeller allegedly would bill BITCO for an inflated amount under the name of a bogus entity and keep the difference.
The indictment also says Mr. Scodeller engaged in monetary transactions of more than $10,000 "involving property derived from the scheme to defraud BITCO."
After an internal investigation, BITCO turned the matter over to FBI and IRS criminal investigations.
Each count of mail or wire fraud has a maximum penalty of up to 20 years in prison and a $250,000 fine. The money laundering counts are punishable by up to 20 years in prison and a maximum fine of $500,000 or twice the value of property involved in the transactions, whichever amount is greater.
Tuesday, October 28, 2014
Louisiana Man Pleads Gilty To Embezzling $1 Million+
From the Times-Picayune on 10/27/2014:
A Mandeville media consultant accused of running a scheme that defrauded clients of more than $1 million over a three-year period pleaded guilty Monday (Oct. 27) to five counts of mail fraud, according to U.S. Attorney Walt Green's office.
Raymond Christopher Reggie, 52, was charged in a superseding indictment with five counts of mail fraud. A federal grand jury in the Middle District of Louisiana in Baton Rouge indicted Reggie in August 2013 with five counts of wire fraud and six counts of money laundering.
Reggie is the former brother in law of the late U.S. Sen. Ted Kennedy and son of former Crowley City Judge Edmund Reggie.
The original counts were dismissed when the superseding indictment was filed, court records show. The U.S. Attorney's Office said Reggie's case was set to go to trial in Baton Rouge Monday. He pleaded guilty without the benefit of a plea agreement.
Reggie owned Nexlevel Group, an advertising firm that purchased and managed advertising for car dealerships.
Authorities said he submitted fake expenses for payment to the dealerships that showed the expenses actually were incurred. Once the dealerships submitted payments to Nexlevel, authorities said Reggie diverted the funds to a personal bank account.
Between January 2009 and July 2012, federal authorities said car dealerships issued Reggie's company 138 checks totaling approximately $1,217,657 for advertising services they did not receive.
Reggie is facing similar charges in St. Tammany Parish.
The St. Tammany Parish District Attorney's office charged Reggie with seven counts of theft over $1,500 in February 2013. The charges stem from an August 2012 arrest.
The St. Tammany Parish Sheriff's Office said at the time it had identified more than $600,000 in fake invoices for which Reggie was compensated. The sheriff's office said Supreme Automotive Group filed a complaint alleging it hired Reggie in 2010 to place ads for dealerships in various media outlets throughout southeastern Louisiana. The group said the ads never appeared in print or on the air.
Reggie is set to go to trial on the theft charges on March 16, court records show.
Reggie, who was one of President Bill Clinton's confidants in Louisiana, was sentenced in 2005 to serve one year and one day in federal prison after he pleaded guilty to bank fraud. Reggie admitted he used his company to move money between banks in Baton Rouge and New Orleans from 1999 to 2001 to make it seem like he had more cash than he actually did.
He took out a $6 million loan at Hibernia National Bank of New Orleans using a fabricated contract with the U.S. Census Bureau as collateral. Court records show Hibernia lost $3.5 million as a result.
In the federal mail fraud case, Reggie faces prison time, fines, restitution and could be forced to forfeit any property he obtained using money from the dealerships. A sentencing date has not been set.
"Being articulate, smart, charming and connected are often characteristics seen in successful con artists, like this defendant," Green said. "The audacity of his fraud schemes is only outdone by his desperate attempts to deflect blame on others. This defendant only accepted responsibility after realizing that his efforts to smear and blame others would not save him from the harsh reality of the law and facts."
Jerome R. McDuffie, acting special agent in charge of the Internal Revenue Service's criminal investigations division said his office and the U.S. Attorney's Office "remain fully committed to prosecution of those who engage in these practices for personal gain."
A Mandeville media consultant accused of running a scheme that defrauded clients of more than $1 million over a three-year period pleaded guilty Monday (Oct. 27) to five counts of mail fraud, according to U.S. Attorney Walt Green's office.
Raymond Christopher Reggie, 52, was charged in a superseding indictment with five counts of mail fraud. A federal grand jury in the Middle District of Louisiana in Baton Rouge indicted Reggie in August 2013 with five counts of wire fraud and six counts of money laundering.
Reggie is the former brother in law of the late U.S. Sen. Ted Kennedy and son of former Crowley City Judge Edmund Reggie.
The original counts were dismissed when the superseding indictment was filed, court records show. The U.S. Attorney's Office said Reggie's case was set to go to trial in Baton Rouge Monday. He pleaded guilty without the benefit of a plea agreement.
Reggie owned Nexlevel Group, an advertising firm that purchased and managed advertising for car dealerships.
Authorities said he submitted fake expenses for payment to the dealerships that showed the expenses actually were incurred. Once the dealerships submitted payments to Nexlevel, authorities said Reggie diverted the funds to a personal bank account.
Between January 2009 and July 2012, federal authorities said car dealerships issued Reggie's company 138 checks totaling approximately $1,217,657 for advertising services they did not receive.
Reggie is facing similar charges in St. Tammany Parish.
The St. Tammany Parish District Attorney's office charged Reggie with seven counts of theft over $1,500 in February 2013. The charges stem from an August 2012 arrest.
The St. Tammany Parish Sheriff's Office said at the time it had identified more than $600,000 in fake invoices for which Reggie was compensated. The sheriff's office said Supreme Automotive Group filed a complaint alleging it hired Reggie in 2010 to place ads for dealerships in various media outlets throughout southeastern Louisiana. The group said the ads never appeared in print or on the air.
Reggie is set to go to trial on the theft charges on March 16, court records show.
Reggie, who was one of President Bill Clinton's confidants in Louisiana, was sentenced in 2005 to serve one year and one day in federal prison after he pleaded guilty to bank fraud. Reggie admitted he used his company to move money between banks in Baton Rouge and New Orleans from 1999 to 2001 to make it seem like he had more cash than he actually did.
He took out a $6 million loan at Hibernia National Bank of New Orleans using a fabricated contract with the U.S. Census Bureau as collateral. Court records show Hibernia lost $3.5 million as a result.
In the federal mail fraud case, Reggie faces prison time, fines, restitution and could be forced to forfeit any property he obtained using money from the dealerships. A sentencing date has not been set.
"Being articulate, smart, charming and connected are often characteristics seen in successful con artists, like this defendant," Green said. "The audacity of his fraud schemes is only outdone by his desperate attempts to deflect blame on others. This defendant only accepted responsibility after realizing that his efforts to smear and blame others would not save him from the harsh reality of the law and facts."
Jerome R. McDuffie, acting special agent in charge of the Internal Revenue Service's criminal investigations division said his office and the U.S. Attorney's Office "remain fully committed to prosecution of those who engage in these practices for personal gain."
Tuesday, July 1, 2014
Fraud of the Week: Former Airline Employee & Co-Conspirator Indicted In $22 Million Embezzlment Conspiracy
According to the FBI, 2 men have been charged with defrauding Delta and Northwest Airlines of $22 Million:
Update (1/12/2015): Yedor has been sentenced to 10 years in prison in what is now believed to be a $36 million embezzlement scheme:
A Los Angeles man has been sentenced to 10 years in prison for defrauding Northwest and Delta Air Lines of more than $36 million over more than a decade, prosecutors said Friday.
Michael Yedor, 62, was sentenced by U.S. District Judge Timothy Batten after pleading guilty Oct. 20 to conspiracy to commit mail fraud. He also forfeited property such as a Beverly Hills mansion and a 71.9-foot yacht that he got from the fraud, prosecutors said.
"The scope and magnitude of this fraudulent scheme is astounding," U.S. Attorney Sally Quillian Yates said.
Yedor had been an employee of Northwest since 1979 and then Delta after the airlines merged in 2009. From at least 1999 through 2013, according to investigators, Yedor submitted invoices from a company, Airborne Voice and Data, that sought payment for goods and services that the company hadn't provided.
J. Britt Johnson, FBI special agent in charge of the Atlanta office, said Yedor's sentencing represents "the end of not only a complex scheme to defraud Northwest Airlines and Delta Airlines but also the resulting extensive federal investigation into those involved."
Yedor's accomplice, Paul Anderson, 57, of Apple Valley, Minn., a manager who had the authority to approve the payments, pleaded guilty to mail fraud on Sept. 15 and is scheduled to be sentenced Jan. 23.
Michael Yedor and Paul Anderson have been indicted by a federal grand jury on charges that they participated in a long-running scheme to defraud Delta Airlines of millions of dollars. Yedor was arrested in San Diego, Calif. on Saturday, June 21, 2014.
“The longevity and scope of the scheme to defraud Delta is simply astonishing,” said United States Attorney Sally Quillian Yates. “The indictment is an important first step in finally bringing these defendants to justice after so many years of engaging in fraud.”...
According to United States Attorney Yates, the indictment, and other information presented in court: Anderson had been an employee of Northwest Airlines since 1979. In 2008, Delta Airlines purchased Northwest. The two airlines merged into a single company in December 2009, at which time Anderson became an employee of Delta working in its Minneapolis, Minn., office.
The indictment alleges that, from at least 2004 through 2013, Anderson was involved with Yedor in a scheme to defraud Northwest and, later, Delta, by submitting numerous false invoices on behalf of a company, Airborne Voice and Data, purportedly owned by Yedor. The invoices sought payment from the airlines for goods provided and services supposedly rendered by Airborne Voice and Data, when in fact, both Anderson and Yedor knew that Yedor’s company had not provided any such goods or services.
The indictment also alleges that Yedor sent the invoices to Anderson to be approved. Anderson approved the fraudulent invoices, which caused the airlines to issue payments to Airborne Voice and Data. In exchange for approving each of the invoices, Anderson received a portion of the proceeds of the fraud. The indictment alleges that Yedor and Anderson caused Northwest and Delta to issue approximately $22 million in payments to Airborne on the basis of the false invoices between 2004 and 2013.
Yedor, 62, of Los Angeles, Calif., and Anderson, 57, of Apple Valley, Minn., were indicted on June 10, 2014, and have each been charged with conspiracy to commit mail fraud and ninety-six counts of mail fraud. The indictment was unsealed after Yedor’s arrest on Saturday, June 21, 2014. ...
Update (1/12/2015): Yedor has been sentenced to 10 years in prison in what is now believed to be a $36 million embezzlement scheme:
A Los Angeles man has been sentenced to 10 years in prison for defrauding Northwest and Delta Air Lines of more than $36 million over more than a decade, prosecutors said Friday.
Michael Yedor, 62, was sentenced by U.S. District Judge Timothy Batten after pleading guilty Oct. 20 to conspiracy to commit mail fraud. He also forfeited property such as a Beverly Hills mansion and a 71.9-foot yacht that he got from the fraud, prosecutors said.
"The scope and magnitude of this fraudulent scheme is astounding," U.S. Attorney Sally Quillian Yates said.
Yedor had been an employee of Northwest since 1979 and then Delta after the airlines merged in 2009. From at least 1999 through 2013, according to investigators, Yedor submitted invoices from a company, Airborne Voice and Data, that sought payment for goods and services that the company hadn't provided.
J. Britt Johnson, FBI special agent in charge of the Atlanta office, said Yedor's sentencing represents "the end of not only a complex scheme to defraud Northwest Airlines and Delta Airlines but also the resulting extensive federal investigation into those involved."
Yedor's accomplice, Paul Anderson, 57, of Apple Valley, Minn., a manager who had the authority to approve the payments, pleaded guilty to mail fraud on Sept. 15 and is scheduled to be sentenced Jan. 23.
Thursday, February 27, 2014
Illinois Man Indicted On Fraud Charges Alledging He Embezzled $500+K From Client Escrow Accounts; Another Employee Embezzles $400K
From the Chicago Tribune on 2/27/14:
The co-founder of a defunct Chicago escrow company was indicted on federal fraud charges on Wednesday for allegedly engaging in a Ponzi-like scheme and using more than $500,000 of customer funds for personal expenses and to operate other businesses.
Derek Lurie, was charged with five counts of mail fraud. Each count carries a maximum penalty of 20 years in prison and a $250,000 fine.
Lurie’s company, American Escrow, which had offices on West Randolph and North May streets, went out of business in 2009. The company didn’t issue refunds and left some of its customers with delinquent tax and insurance bills.
“This is a very stale investigation and a wrong-headed indictment. This is not a criminal case,” said Thomas Durkin, an attorney representing American Escrow.
The indictment alleges Lurie used some of the money it collected from customers to cover personal expenses, such as car payments and the costs of renovating a condominium in Miami.
American Escrow, which operated at a “significant deficit,” survived by juggling new escrow funds to pay off tax and insurance payments due at different times throughout the year, according to the indictment.
Lurie, 40, is due in court on March 11 for his arraignment.
Earlier this month, Jacqueline Cruz, a former American Escrow employee, was indicted for allegedly fraudulently obtaining more than $400,000 from the company.
Cruz, who oversaw the payment of customers’ property taxes and private mortgage insurance, wrote 122 company checks to herself between May 2005 and March 2009, according to her indictment.
Cruz, 38, is now living in Okinawa, Japan. She pleaded not guilty on Feb. 19 to three counts of mail fraud.
The co-founder of a defunct Chicago escrow company was indicted on federal fraud charges on Wednesday for allegedly engaging in a Ponzi-like scheme and using more than $500,000 of customer funds for personal expenses and to operate other businesses.
Derek Lurie, was charged with five counts of mail fraud. Each count carries a maximum penalty of 20 years in prison and a $250,000 fine.
Lurie’s company, American Escrow, which had offices on West Randolph and North May streets, went out of business in 2009. The company didn’t issue refunds and left some of its customers with delinquent tax and insurance bills.
The indictment alleges Lurie used some of the money it collected from customers to cover personal expenses, such as car payments and the costs of renovating a condominium in Miami.
American Escrow, which operated at a “significant deficit,” survived by juggling new escrow funds to pay off tax and insurance payments due at different times throughout the year, according to the indictment.
Lurie, 40, is due in court on March 11 for his arraignment.
Earlier this month, Jacqueline Cruz, a former American Escrow employee, was indicted for allegedly fraudulently obtaining more than $400,000 from the company.
Cruz, who oversaw the payment of customers’ property taxes and private mortgage insurance, wrote 122 company checks to herself between May 2005 and March 2009, according to her indictment.
Cruz, 38, is now living in Okinawa, Japan. She pleaded not guilty on Feb. 19 to three counts of mail fraud.
Pennsylvania Man Arrested In $2.5 Bank Embezzlement Case - Also Faces Fraud Charges For Ripping Off eBay Customers
From the Pittsburgh Tribune-Review on 2/27/14:
A Downtown man facing prosecution on charges that include embezzling $2.5 million while he worked for the Bank of New York Mellon Corp. was arrested this week in Arizona on counterfeiting charges, federal prosecutors said.
Assistant U.S. Attorney Tonya Goodman on Wednesday asked U.S. District Judge Terrence McVerry to revoke the bail of Joseph Graziano, 28.
A grand jury indicted Graziano in September on 14 counts of bank fraud, mail fraud and embezzlement. The bank fraud counts accuse him of taking out loans and using expensive cars he no longer owned as collateral.
The mail fraud counts include his ripping off eBay customers by accepting thousands of dollars for electronics and sending buyers empty boxes.
...
Thursday, February 20, 2014
New Jersey Doctor Pleads Guilty To Embezzling $1.1 Million From Medical Practice
From the Middletown Patch on 2/19/14:
A pain management doctor with a Red Bank-based practice admitted Wednesday that he embezzled more than $1.1 million from the business, U.S. Attorney Paul J. Fishman announced.
Robert Muscio, 40, of Colts Neck pleaded guilty to one count of committing mail fraud to embezzle the funds.
Between 2007 and 2008, Muscio misused his position as medical director of a practice with which he is no longer associated to write checks on the practice’s bank account to pay his personal expenses, the U.S. Attorney's Office said in a press release. To conceal this his partners, Muscio falsely described the payments as business expenses of the practice.
The mail fraud count is punishable by a maximum sentence of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 21, 2014.
A pain management doctor with a Red Bank-based practice admitted Wednesday that he embezzled more than $1.1 million from the business, U.S. Attorney Paul J. Fishman announced.
Robert Muscio, 40, of Colts Neck pleaded guilty to one count of committing mail fraud to embezzle the funds.
Between 2007 and 2008, Muscio misused his position as medical director of a practice with which he is no longer associated to write checks on the practice’s bank account to pay his personal expenses, the U.S. Attorney's Office said in a press release. To conceal this his partners, Muscio falsely described the payments as business expenses of the practice.
The mail fraud count is punishable by a maximum sentence of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 21, 2014.
Wednesday, February 19, 2014
Pennsylvania Man Pleads Guilty To Embezzling $9 Million From Drilling Company; Blames Gambling Addiction
From the Pittsburgh Post-Gazette on 2/18/14:
Larry Dean Winckler, former chief operating officer of Marcellus shale gas firm Falcon Drilling LLC, pleaded guilty today to federal charges of conspiracy, mail fraud and filing false tax returns, after a prosecutor outlined his embezzlement of $9 million, much of it spent on gambling.
Mr. Winckler, 53, of Indiana, Pa., could face five or six years in prison following a sentencing hearing set for May 30.
Assistant U.S. Attorney Greg Melucci said that Mr. Winckler worked with the company’s controller and an auto parts dealer to funnel money out of the firm from 2004 through 2012.
He wrote checks in the tens of thousand of dollars, sometimes many times in a single month, which he disguised through fake purchases for parts and drill bits, Mr. Melucci said.
The prosecutor said that Mr. Winckler had an “enormous gambling problem” and lost much of the money at casinos in Pennsylvania, New Jersey and New York.
...
Read the whole story here.
Update (1/27/15): Winckler was sentenced to 96 months in prison and ordered to pay $10,206,425 in restitution.
Larry Dean Winckler, former chief operating officer of Marcellus shale gas firm Falcon Drilling LLC, pleaded guilty today to federal charges of conspiracy, mail fraud and filing false tax returns, after a prosecutor outlined his embezzlement of $9 million, much of it spent on gambling.
Mr. Winckler, 53, of Indiana, Pa., could face five or six years in prison following a sentencing hearing set for May 30.
Assistant U.S. Attorney Greg Melucci said that Mr. Winckler worked with the company’s controller and an auto parts dealer to funnel money out of the firm from 2004 through 2012.
He wrote checks in the tens of thousand of dollars, sometimes many times in a single month, which he disguised through fake purchases for parts and drill bits, Mr. Melucci said.
The prosecutor said that Mr. Winckler had an “enormous gambling problem” and lost much of the money at casinos in Pennsylvania, New Jersey and New York.
...
Read the whole story here.
Update (1/27/15): Winckler was sentenced to 96 months in prison and ordered to pay $10,206,425 in restitution.
Minnesota Man Involved In Incredible $6.3 Million Embezzlment Saga
From the Pioneer Press on 2/18/14:
The saga has betrayal, blackmail and even a longtime mistress. And then there's the millions of dollars allegedly embezzled from one of St. Paul's best-known businessmen. In a court document filed Friday, federal prosecutors laid out the case they plan to present to a jury next week when John Joseph Waters Jr. goes on trial, accused of stealing from his longtime boss and friend, the late Gerard Leon Cafesjian, the retired West Publishing executive whose name is on St. Paul's famous carousel. Assistant U.S. Attorney William Otteson wrote in a pretrial brief that Waters engineered a scheme to embezzle millions from Cafesjian and that the scam lasted for years. "Waters used the stolen money to satisfy the expensive personal spending habits of himself, his family, and a mistress whom he was secretly supporting for years," Otteson wrote. The alleged embezzlement totaled $4 million, the government claims, and he gave more than $700,000 of it "to his mistress, Cheri Kuhn (now Cheri Waters), whom he met at the Deja Vu nightclub in the late 1990s and with whom he was having a long-term affair," Otteson wrote. Waters, 57, of Eden Prairie has pleaded not guilty to the charges. In August, he was named in a 26-count federal indictment accusing him of mail and wire fraud, income tax evasion and filing a false income tax return. His trial is scheduled to begin Feb. 24 in U.S. District Court in Minneapolis.
...
Read the whole story here.
The saga has betrayal, blackmail and even a longtime mistress. And then there's the millions of dollars allegedly embezzled from one of St. Paul's best-known businessmen. In a court document filed Friday, federal prosecutors laid out the case they plan to present to a jury next week when John Joseph Waters Jr. goes on trial, accused of stealing from his longtime boss and friend, the late Gerard Leon Cafesjian, the retired West Publishing executive whose name is on St. Paul's famous carousel. Assistant U.S. Attorney William Otteson wrote in a pretrial brief that Waters engineered a scheme to embezzle millions from Cafesjian and that the scam lasted for years. "Waters used the stolen money to satisfy the expensive personal spending habits of himself, his family, and a mistress whom he was secretly supporting for years," Otteson wrote. The alleged embezzlement totaled $4 million, the government claims, and he gave more than $700,000 of it "to his mistress, Cheri Kuhn (now Cheri Waters), whom he met at the Deja Vu nightclub in the late 1990s and with whom he was having a long-term affair," Otteson wrote. Waters, 57, of Eden Prairie has pleaded not guilty to the charges. In August, he was named in a 26-count federal indictment accusing him of mail and wire fraud, income tax evasion and filing a false income tax return. His trial is scheduled to begin Feb. 24 in U.S. District Court in Minneapolis.
...
Read the whole story here.
Thursday, January 9, 2014
Texas Man Pleads Guilty To Embezzling $500K+ From State School Board Association
From the Associated Press on 1/8/14:
The former workers' compensation claims chief for the Texas Association of School Boards admits to stealing more than $500,000 from the group's insurance fund.
Federal prosecutors say Herman G. Wilks pleaded guilty Wednesday in Austin to 10 mail fraud counts. He admitted stealing the money from the association's risk management fund. That fund provides coverage for member school board unemployment and workers' compensation claims, along with auto, liability and property claims.
Wilks could be sentenced to up to 20 years in prison for each of the 10 counts. No sentencing date has been set, but Wilks remains free on bond until then.
The former workers' compensation claims chief for the Texas Association of School Boards admits to stealing more than $500,000 from the group's insurance fund.
Federal prosecutors say Herman G. Wilks pleaded guilty Wednesday in Austin to 10 mail fraud counts. He admitted stealing the money from the association's risk management fund. That fund provides coverage for member school board unemployment and workers' compensation claims, along with auto, liability and property claims.
Wilks could be sentenced to up to 20 years in prison for each of the 10 counts. No sentencing date has been set, but Wilks remains free on bond until then.
Thursday, August 8, 2013
Texas Woman Pleads Guilty To Embezzling $772K
From the Terrell Tribune on 6/9/13:
A Kaufman woman is facing prison time after pleading guilty on Wednesday in connection with embezzling more than $750,000 from her employer.
Marci Johnson, 46, appeared in federal court and pleaded guilty before U.S. District Judge Jorge A. Solis to one count of mail fraud, stemming from her embezzlement of more than $772,000.
A Kaufman woman is facing prison time after pleading guilty on Wednesday in connection with embezzling more than $750,000 from her employer.
Marci Johnson, 46, appeared in federal court and pleaded guilty before U.S. District Judge Jorge A. Solis to one count of mail fraud, stemming from her embezzlement of more than $772,000.
Thursday, June 6, 2013
Texas Woman Pleads Guilty To Embezzling $773K; Supports Lavish Lifestyle
From the Associated Press on 6/6/13:
...
Prosecutors in Dallas say 46-year-old Marci Johnson of Kaufman pleaded guilty Wednesday to mail fraud.
Johnson faces up to two years in prison as part of the plea deal and also could be required to repay nearly $773,000 to Spaeth Communications of Dallas. Sentencing is pending.
Prosecutors say Johnson was the chief administrative officer for the business communications company and had access to company checks and credit cards.
Investigators say she used corporate funds for personal dining, shopping and entertainment. Prosecutors say Johnson also made false entries in the company's accounting software to help cover her fraudulent purchases.
...
Prosecutors in Dallas say 46-year-old Marci Johnson of Kaufman pleaded guilty Wednesday to mail fraud.
Johnson faces up to two years in prison as part of the plea deal and also could be required to repay nearly $773,000 to Spaeth Communications of Dallas. Sentencing is pending.
Prosecutors say Johnson was the chief administrative officer for the business communications company and had access to company checks and credit cards.
Investigators say she used corporate funds for personal dining, shopping and entertainment. Prosecutors say Johnson also made false entries in the company's accounting software to help cover her fraudulent purchases.
Sunday, August 5, 2012
Former Head Of California Union Indicted For Allegedly Embezzling More Than $100K
 |
| Tyrone R. Freeman |
Read the story here.
Update (1/29/13): Freeman was found guilty of four counts of mail fraud, seven counts of embezzlement and/or theft of labor union assets, one count of making a false statement to a federally insured financial institution, and two counts of subscribing to a false tax return.
Major Embezzlement Cases: July 8 - 15
Jay S. Fischer, 52, of Wausau, Wisconsin, has been charged with embezzling more than $1 million from his mortgage clients at Valley Title, which he owned. According to authorities, Fischer kept client funds intended to pay off mortgages for his own benefit. Fischer has been charged with 25 felony counts, including racketeering, embezzlement and various tax crimes. Note: Fischer is also facing unrelated child molestation and sexual assault charges.
Jennifer Hughes-Boyles, 40, of Topeka, Kansas, has been ordered to pay $712,145 in restitution to Heritage Bank, for which she had been employed as a vice president. Hughes-Boyles pleaded guilty to bank fraud in connection with her misappropriation of the funds from the bank through a fraudulent loan scheme.
An investigation into the possible embezzlement of $109,454 from the St. John the Baptist Catholic Church in Edmond, Oklahoma. A suspect has not yet been publicly named. Developing...
Alice M. Foss, 50, of Springfield, Illinois, has been indicted by a federal grand jury on charges she embezzled at least $400,000 from Don Moss and Associates, a local consulting and lobbying firm, where she had been employed as CFO. Foss allegedly misappropriated the funds over a 13 year period, from 1997 until 2010, by giving herself unauthorized bonuses and expense reimbursements.
Iain Anderson, a resident of Ventura County, California has been accused in a civil suit of embezzling at least $600,000 from AND Syndicated Productions, the producer of such syndicated programs as The Bachelor, The Bachelorette and other TV shows. Anderson is described in the suit as the "Lead Production Accountant" for several of the company's programs. The suit alleges that Anderson artificially inflated production costs and other expenses as well as requested petty cash for bogus expenses, comingling production funds with his personal bank accounts and recording bogus and false payroll transactions, plus other acts of conversion. Read the complaint here. Developing...
Dana Louise Sullivan, 46, of Park Township, Michigan, has been charged with embezzling at least $150,000 from Summit Properties, a local real estate firm where she had been employed. Sullivan's thefts, which spanned at least 9 years, total as much as $500,000, according to company owner Tom Speet. Sullivan reportedly has a prior criminal arrest for embezzlement and larceny from a financial institution in 2002. She reached a plea agreement in that case, dropping the embezzlement charge.
Kathleen Kau, of Honolulu, Hawaii, has been sentenced to 10 years in prison for embezzling more than $360,000 from Transamerica Life Insurance Co. where she had been employed as an insurance agent. According to authorities, Kau'd theft began in March 1998 and continued through June 2003, spanning more than 5 years. Kau reportedly set up a P.O. Box and told clients that their homes were destroyed, redirecting mail to the new address. Kau kept the insurance payments for herself.
Andrea Lynn Hammond, 41, of Casper, Wyoming, has been arrested on felony theft charges for allegedly embezzling "a significant amount of funds" from the Family Crisis Services, Inc. for which she had served as Executive Director. We believe that a "significant amount of funds" suggests more than $100,000. Developing...
Keri M. Geschke, 38, of DeForest, Wisconsin, has pleaded no contest to charges she embezzled some $123,000 from Sound Billing, where she had been employed as an accountant. According to authorities, the thefts were discovered by Geschke's successor at the company, who found unusual deposits from the company's account to Geschke's bank account. After the allegations surfaced in 2010, Geschke disappeared. Read the story and see her image here.
Elizabeth Walsh, 45, of Amherst, Massachusetts, has been charged with embezzling some $112,000 from the Amherst Pelham Education Association, for which she had served as treasurer. The Association operates as the teachers union for the Amherst-Pelham Regional School District. Developing...
Taira Desart, 43, of Kalispell, Montana, has pleaded not guilty to charges she embezzled some $154,000 from Jesco Marine and Power Sports where she had served as bookkeeper for 17 years. She has been charged with felony embezzlement and faces up to 10 years in prison. The thefts allegedly spanned a period of about 6 and a half years.
Michael Wion, 40, of Piqua, Ohio and his assistant,Tess Cremeens, 43, of Troy, Ohio, have been charged with embezzling at least $675,000 from Repacorp where Wion was employed as Controller. The misappropriation spanned approximately two years, according to authorities.
Jennifer Hughes-Boyles, 40, of Topeka, Kansas, has been ordered to pay $712,145 in restitution to Heritage Bank, for which she had been employed as a vice president. Hughes-Boyles pleaded guilty to bank fraud in connection with her misappropriation of the funds from the bank through a fraudulent loan scheme.
Update (9/10/12): Hughes-Boyles was sentenced to 30 months in prison.
An investigation into the possible embezzlement of $109,454 from the St. John the Baptist Catholic Church in Edmond, Oklahoma. A suspect has not yet been publicly named. Developing...
Update (12/18/12): Bill Dwight Coyle, 62, of Edmond, Oklahoma, and the former business manager for the church, has been charged with eight felony counts in connection with the embezzlement.
Alice M. Foss, 50, of Springfield, Illinois, has been indicted by a federal grand jury on charges she embezzled at least $400,000 from Don Moss and Associates, a local consulting and lobbying firm, where she had been employed as CFO. Foss allegedly misappropriated the funds over a 13 year period, from 1997 until 2010, by giving herself unauthorized bonuses and expense reimbursements.
Iain Anderson, a resident of Ventura County, California has been accused in a civil suit of embezzling at least $600,000 from AND Syndicated Productions, the producer of such syndicated programs as The Bachelor, The Bachelorette and other TV shows. Anderson is described in the suit as the "Lead Production Accountant" for several of the company's programs. The suit alleges that Anderson artificially inflated production costs and other expenses as well as requested petty cash for bogus expenses, comingling production funds with his personal bank accounts and recording bogus and false payroll transactions, plus other acts of conversion. Read the complaint here. Developing...
Dana Louise Sullivan, 46, of Park Township, Michigan, has been charged with embezzling at least $150,000 from Summit Properties, a local real estate firm where she had been employed. Sullivan's thefts, which spanned at least 9 years, total as much as $500,000, according to company owner Tom Speet. Sullivan reportedly has a prior criminal arrest for embezzlement and larceny from a financial institution in 2002. She reached a plea agreement in that case, dropping the embezzlement charge.
Update (11/5/12): Sullivan, now 47, was sentenced to a minimum of 30 months in prison and ordered to pay $422,541 in restitution.
Kathleen Kau, of Honolulu, Hawaii, has been sentenced to 10 years in prison for embezzling more than $360,000 from Transamerica Life Insurance Co. where she had been employed as an insurance agent. According to authorities, Kau'd theft began in March 1998 and continued through June 2003, spanning more than 5 years. Kau reportedly set up a P.O. Box and told clients that their homes were destroyed, redirecting mail to the new address. Kau kept the insurance payments for herself.
Andrea Lynn Hammond, 41, of Casper, Wyoming, has been arrested on felony theft charges for allegedly embezzling "a significant amount of funds" from the Family Crisis Services, Inc. for which she had served as Executive Director. We believe that a "significant amount of funds" suggests more than $100,000. Developing...
Update (1/14/13): Hammond pleaded guilty to a lesser charge of embezzlement of more than $20,000. She reportedly used the non-profit's credit cards for personal use and gave herself significant unauthorized salary increases over a 3 year period. The total amount understood to have been stolen is approximately $75,000.
Update (4/9/13): Hammond was sentenced to 4 years in prison.
Keri M. Geschke, 38, of DeForest, Wisconsin, has pleaded no contest to charges she embezzled some $123,000 from Sound Billing, where she had been employed as an accountant. According to authorities, the thefts were discovered by Geschke's successor at the company, who found unusual deposits from the company's account to Geschke's bank account. After the allegations surfaced in 2010, Geschke disappeared. Read the story and see her image here.
Update (12/3/12): Geschke, now 39, has been sentenced to 4 months in prison and ordered to pay full restitution.
Elizabeth Walsh, 45, of Amherst, Massachusetts, has been charged with embezzling some $112,000 from the Amherst Pelham Education Association, for which she had served as treasurer. The Association operates as the teachers union for the Amherst-Pelham Regional School District. Developing...
Update (12/20/12): Walsh, now 46, pleaded guilty to felony larceny charges and was ordered to pay restitution of $116,000. According to media accounts, Walsh wrote checks to herself over a 6 year period from 2006 to 2012. She blamed personal financial troubles for her actions and was spared any jail time.
Taira Desart, 43, of Kalispell, Montana, has pleaded not guilty to charges she embezzled some $154,000 from Jesco Marine and Power Sports where she had served as bookkeeper for 17 years. She has been charged with felony embezzlement and faces up to 10 years in prison. The thefts allegedly spanned a period of about 6 and a half years.
Michael Wion, 40, of Piqua, Ohio and his assistant,Tess Cremeens, 43, of Troy, Ohio, have been charged with embezzling at least $675,000 from Repacorp where Wion was employed as Controller. The misappropriation spanned approximately two years, according to authorities.
Update (4/24/13): Wion, 42, now of Venice, Forida, has pleaded not guilty to charges including engaging in a pattern of corrupt activity, conspiracy to engage in corrupt activity, aggravated theft and a dozen counts of telecommunications fraud in connection with this embezzlement. The total thefts are now reported to be nearly $800,000.
Thursday, June 21, 2012
Former Payroll Manager In Minnesota Charged With Embezzling $1.1 Million From Land O’ Lakes
Cynthia Carol Jacobsen, age 58, of Brooklyn Park, Minnesota, has been charged with embezzling more than $1.1 million from Land O' Lakes, Inc. where she had been employed as a payroll manager. According to authorities, over a period of about 4 years, from 2008 through May 2012, Jacobsen fraudulently used her daughter's name in the vendor system to make payments from company coffers for her own benefit. Jacobsen reportedly has a prior criminal conviction for theft. She has been charged in a one count Information with mail fraud.
Read the story here and here.
Update (7/13/12): Jacobsen pleaded guilty to mail fraud. She faces up to 51 months in prison.
Update (11/29/12): Jacobsen was sentenced to 26 months in prison and ordered to pay $1.04 million in restitution.
Read the story here and here.
Update (7/13/12): Jacobsen pleaded guilty to mail fraud. She faces up to 51 months in prison.
Update (11/29/12): Jacobsen was sentenced to 26 months in prison and ordered to pay $1.04 million in restitution.
Thursday, May 31, 2012
Missouri Man Sentenced For Embezzling Nearly $189K From Financial Concern's Client Accounts
Duane Cook, 36, of Spanish Lake, Missouri, has been sentenced to 21 months in prison for embezzling nearly $189,000 from client trust accounts at Edward Jones Trust Co. where he had been employed as a trust specialist. According to authorities, over a period of more than 5 years, from May 2006 to June 2011, Cook siphoned funds from three client trust accounts at the financial institution. Specifically, Cook issued false invoices and had 61 checks issued made out to “Fever,” a phony company he created to perpetrate the fraud. Cook, who pleaded guilty in January 2012 to one felony count of mail fraud, was also ordered to pay full restitution.
Read the story here and here.
Read the story here and here.
Saturday, March 31, 2012
Former Washington State Lawyer Pleads Guilty To Charges He Embezzled More Than $1 Million From Clients
Peter Allen Moote, 63, formerly of Whidbey Island, Washington, has pleaded guilty to charges he embezzled more than $1 million from his clients. According to authorities, over a period of more than 10 years, Moote siphoned funds from client trust accounts to pay for his personal living expenses and gambling. Moote has agreed to pay restitution and is expected to be sentenced in June 2012.
Read the story here and here.
Read the DOJ announcement here.
Hat tip: FraudTalk reader Julianne.
Read the story here and here.
Read the DOJ announcement here.
Hat tip: FraudTalk reader Julianne.
Monday, January 30, 2012
Former Pennsylvania Paralegal Who Faked Kidnapping, Sentenced For Embezzling More Than $1 Million
Read the story here, here, here and here.
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