Former California Municipal Councilman Indicted For Allegedly Embezzling As Much As $880K

John Keith Drayman, 54, of Glendale, California, has been indicted on charges he embezzled between $304,000 and $880,000 from the weekly Harvest Market, operated by the non-profit Montrose Shopping Park Association in Montrose, California, which he had founded.  According to prosecutors, over a period of 7 years, from 2004 through 2011, Drayman siphoned funds from the Association.  Drayman has been charged with one count of embezzlement, 10 counts of filing false tax returns, five counts of money laundering, three counts of forgery, one count filing a false financial statement and eight counts of perjury by declaration. 

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California Man Charged With Embezzling $100K From Youth Sports Program

Cedric Earl Allen, 53, of Corona, California, was charged with embezzling about $100,000 from the Corona Youth Sports Foundation where he had served as treasurer. Allen is also accused of embezzling $17,000 from City Councilman Steve Nolan's re-election campaign for which he also had served as treasurer. Councilman Nolan started the Foundation 7 years ago to provide local children with athletic opportunities after school, including its signature boxing program, Corona Boxing. Specifically, Allen was charged with two counts each of grand theft, embezzlement, perjury and forgery as well as enhancements of theft of more than $100,000 and taking, damaging or destroying property. He has plead not guilty to the charges.

We note that Allen had also served as treasurer for the Corona Heights Baptist Church, the Santiago High School Choir Booster Club, the Christian Arts & Theatre of Corona and the Committee to Elect Stan Skipworth. Each had better check their books carefully.

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California Insurance Agent Arrested For Allegedly Embezzling $400+K In Client Premiums

Albert Ricardo Prince, 53, of Bakersfield, California, was arrested Friday for embezzling more than $400,000 in client premiums from his insurance agency, Prince Insurance Agency. He has pleaded not guilty to 8 felony charges, including embezzlement, perjury, grand theft and other charges. Price's scheme spanned about three and a half years between March 2006 and October 2009. The scam was revealed when the Bakersfield Homeless Center realized that they had purchased a bogus bond from Prince's agency to build a new facility.

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Former NYC Lawmaker Sentenced To 10 Years For Fraud, Embezzlement

Brian M. McLaughlin, 57, and a former assemblyman for the New York City borough of Queens, was sentenced to 10 years in prison for fraud and embezzlement. McLaughlin pleaded guilty last year to charges of racketeering and perjury, admitting he embezzling $3.1 million from labor groups, his own re−election committee and the Electchester Little League. Prosecutors alleged that McLaughlin also took kickbacks from electrical contractors and used the funds in part to buy automobiles for his wife and his former mistress, Sonia Menezes. His alleged criminal activity occurred between 1995 and 2006, according to prosecutors. McLaughlin, a Democrat, was also the president of the New York City Central Labor Council. He is reported to have cooperated with prosecutors, leading to the recent indictments of Queens Assemblyman Anthony Seminerio and Santo (Sandy) Petrocelli, the former head of Petrocelli Electric. McLaughlin, who was originally indicted in October 2006, is scheduled to start his prison sentence on July 21st.

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Update On $126 Million Virginia Fraud Scheme: Okun Convicted

Edward Hugh Okun, 58, of Miami Beach, Florida, was convicted by a Virginia jury yesterday on 23 felony criminal charges including conspiracy to commit mail and wire fraud, wire fraud, conspiracy to commit money laundering, money laundering, bulk cash smuggling and perjury. Okun, the sole owner and senior officer of The 1031 Tax Group LLP, together with company officer Laura Coleman, conspired to misappropriate as much as $126 million in client funds that were supposedly held in trust in a purported capital gains deferment program. The indictment had alleged that Okun used the misappropriated funds to "support his lavish lifestyle, pay operating expenses for his various companies, invest in commercial real estate, and purchase additional qualified intermediary companies to obtain access to additional client funds." Okun reportedly purchased an aircraft, yacht and other luxury items with the ill-gotten funds. Okun is pictured here in a screenshot taken from a 2005 video of his lavish wedding with bride Simone Bolani. Laura Coleman previously pleaded guilty in January on similar charges.

Read FraudTalk's earlier post on this story here.

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Read the DOJ's announcement here.

Madoff Pleads Guilty To All 11 Charges

Bernard L. Madoff, 70, of New York City, pleaded guilty today to a 11 count fraud Information, admitting that, as head and sole principal of of Bernard L. Madoff Investment Securities LLC, he defrauded thousands of clients out of at possibly as much as $65 billion. The Information included charges of securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the SEC, and theft from an employee benefit plan. He faces up to 150 years in prison, plus fines. At his guilty plea hearing today, he is quoted as saying, "I am actually grateful for this opportunity to publicly comment about my crimes, for which I am deeply sorry and ashamed." I cannot adequately express how sorry I am for my crimes." He also said that he is “painfully aware” that he has “deeply hurt many many people.”

Read FraudTalk's latest post on this story here.

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Madoff Charged In 11 Count Information; Indends To Plead Guilty

Bernard L. Madoff, 70, of New York City, in his capacity as sole principal of Bernard L. Madoff Investment Securities LLC, has been charged in an 11 felony fraud count information today with securities fraud, investment adviser fraud, mail fraud, wire fraud, three counts of money laundering, false statements, perjury, false filings with the SEC, and theft from an employee benefit plan related to his alleged defrauding of investors out of as much as $50 billion. There is no plea agreement at this time, according to federal prosecutors. If convicted on all counts, Madoff could be sentenced to as much as 150 years in prison, plus restitution and fines. The information alleged that his fraud commenced since at least the 1980s. According to the complaint, the November statements sent out by the firm to clients indicated a total of $64.8 billion in assets, whereas in fact, it only had a small fraction of that amount. His attorney indicated today that he will plead guilty to all 11 counts.

Read FraudTalk's most recent posts on the Madoff fraud here, here and here.

Read the DOJ's announcement here.

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California Couple Ordered To Pay $4.6 Million In Civil Damages Resulting From Embezzlement

Joyce R. Jaska, 49 and Wesley Jaska, both of Apple Valley, California, have been ordered by a civil court judge to pay $4.6 million to Barstow Truck Parts, Joyce's former employer, from which she and her husband were convicted of embezzling hundreds of thousands of dollars. Joyce Jaska was employed as the company's treasurer and was sentenced with her husband, who was also an employee, to 12 years in prison for the embezzlement and filing false tax returns as well as perjury. The Jaska's were originally arrested in 2002 on embezzlement charges. Their attorney claims the arrest was in retaliation for Joyce blowing the whistle on the company for not paying payroll taxes. For their part in the civil case, Barstow Truck Parts documented in their civil case $2.45 million in losses due to Jaska's theft. The judgement includes punitive damages as well. The scheme lasted at least 3 years, from 1999 to 2002.

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