Former Municipal Recreation Department Manager In Kansas Indicted For Embezzling $125K

From Fox 4 Kansas City on 3/9/2015:

It was announced Monday that the former recreation director for the City of Osawatomie is scheduled to appear in court this month on a federal indictment alleging he embezzled more than $125,000 from the city.

According to a news release from the Office of U.S. Attorney Barry Grissom, Ron Maring, 53, of Osawatomie, Kansas, is scheduled for an initial court appearance on March 27 in U.S. District Court in Wichita. Maring is charged with four counts of tax fraud and 10 counts of money laundering.

Per the release, the indictment alleges that from 2008 to 2011 while Maring was director of the Osawatomie Recreation Commission he embezzled approximately $125,665. He wrote checks from the recreation commission’s account to himself and to American Legion Baseball. He converted the money for his own use and not for the use of the recreation commission or American Legion Baseball.

As part of the scheme, he persuaded recreation commission board members to sign blank checks, used his own signature as an endorsement, instructed a recreation commission employee to endorse checks and forged the name of recreation commission members.

The indictment alleges he failed to report the embezzled money as income on his 2008, 2009, 2010 and 2011 federal income taxes. The indictment also cites 10 dates in 2011 in which Maring deposited stolen funds into his personal account.

...

Read the whole story here.

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.
...

Pennsylvania Man Sentenced To 25 Months In Prison For Embezzling $780K

From TribLIVE.com on 1/7/14:

A Richland man will spend two years and one month in prison for embezzling more than $718,000 from his company's pension plan over several years, a federal judge ruled Friday.  

Merrill J. Druggs, 67, pleaded guilty in October to making false statements and concealing information on pension plan documents. He was a tax manager for Oerlikon USA Holding Inc. of Export, a subsidiary of Swiss conglomerate Oerlikon Group, and a trustee for a pension plan covering about 1,400 people, prosecutors say.

...

 Read the story here.

Hat tip: FraudTalk reader Joe.

 

Kentucky Woman Accused Of Embezzling $313K In Phony Tax Return Scheme To Fuel Lavish Lifestyle; Remains At Large

From the Lexington Herald-Leader on 2/5/14:

Police are seeking a Lexington woman accused of embezzling thousands of dollars from an apartment complex and faking tax returns and bank loans to support a lavish lifestyle on a $40,000 income.

Yarelis Rios is wanted on outstanding arrest warrants, Lexington police spokeswoman Sherelle Roberts said Wednesday. She said she couldn't comment further or detail the charges involved. But a federal affidavit filed in U.S. District Court in Lexington states that "there is an active state arrest warrant for Rios regarding her embezzlement ... and she remains a fugitive."

Rios vanished in December, shortly after police and federal agents began an investigation, the affidavit says.

Now, federal prosecutors contend that Rios' home on Rockminster Road "represents proceeds of forged checks, identity theft, wire fraud and money laundering," according to a complaint filed by Assistant U.S. Attorney Wade Napier. Prosecutors are seeking to have the property forfeited to the government.

An affidavit filed by U.S. Secret Service Agent Nevada Gump in support of the complaint describes how Rios allegedly bought a $425,000 home, expensive vehicles, big-screen TVs, home appliances and large quantities of brand-name clothing, jewelry, watches and accessories on a reported annual income of $40,000.

The affidavit says Rios embezzled thousands of dollars from Thoroughbred Cross apartments on Village Drive, which she managed starting about March 2012. It also alleges that Rios completed fake income tax returns using people's names — apparently without their knowledge — and arranged for $313,000 in tax refunds to go into bank accounts controlled by her and her boyfriend, Artemio Ultrera Pimentel.

In addition, Rios used faked W-2 forms, altered pay stubs and faked bank statements to help secure an $80,000 home loan from Whitaker Bank, the affidavit says. ...

Read the whole story here.

Read more here: http://www.kentucky.com/2014/02/05/3071102/lexington-woman-is-accused-of.html#storylink=cpy

Former Controller Charged With Embezzling $4 Million From Nebraska Company; Blames Gambling Habit

From: KETV on 1/10/14:

A 54-year-old woman accused of tax fraud in Sarpy County in connection with misappropriating her employer's funds now faces felony charges in Douglas County.

Caroline Richardson was booked on three counts of felony theft early Friday.

Investigators said that while employed as a controller for Colombo Candy and Tobacco Wholesale Company, Richardson misappropriated more than $4 million in company funds.

...

Read the whole story and watch the video here.

Update (1/14/14): Richardson was sentenced five years in prison for three counts of income tax evasion.

A Busy Day For Embezzlement In The US Yesterday

Lots of Major embezzlement cases in the news yesterday:

 

 

North Carolina Fire official helps himself to $269,000 in municipal funds:

http://www.mcdowellnews.com/news/article_45a78e62-5236-11e3-bd23-0019bb30f31a.html

 

Office manager for medical clinic in Kansas gets “at least $130,000” and maybe as much as $182,000: 

http://www.kansascity.com/2013/11/20/4637667/brookside-clinic-manager-pleads.html

Former Connecticut Tribal exec get only 18 months for embezzling $100,000:

http://www.lasvegassun.com/news/2013/nov/21/us-tribe-embezzlement/

Secretary from Anchorage high school district steals $135,000 in the "largest heist ever" impacting the Anchorage school district:

http://www.dailyjournal.net/view/story/b26fce1e16ea475eac7b3baa7fca35b8/AK--Embezzlement-Plea/

Texas man is 5th to plead guilty to conspiracy in diversion of $133 million intended for payroll taxes: 

http://www.seattlepi.com/news/texas/article/Man-pleads-guilty-in-Texas-to-133M-tax-fraud-4998668.php

 

Michigan woman pleads guilty to embezzling $148,000 from political consulting firm: 

http://www.mlive.com/news/grand-rapids/index.ssf/2013/11/former_employee_of_john_yobs_c.html

 

Former law enforcement official and his wife charged with embezzling over $100,000 from fire department in upstate New York:

http://www.stargazette.com/article/20131121/NEWS01/311210041/Former-fire-chief-Schuyler-sheriff-s-sgt-pleads-guilty-embezzlement-from-fire-co-?nclick_check=1

Former athletic director for the Tulsa, Oklahoma public school system receives only 7 months for embezzling $92,000: 

http://www.fox23.com/news/local/story/Former-TPS-athletic-director-sentenced-to-7/fM3Y7soOv0qKN9rv6dx9uA.cspx

 

Court administrator in Missouri pleads guilty to embezzling about $140,000 in public funds:

http://www.kansascity.com/2013/11/21/4639804/former-jackson-county-court-administrator.html

Former New Jersey Executive Sentenced For Embezzling $1.3 Million

Rusty E. Spickenreuther, 46, of Franklinville, New Jersey, has been sentenced to 57 months in prison for embezzling $1.3 million from Environmental Industrial Services Corp. of New Jersey where he had been employed as controller.  According to authorities, over a 2 year period, from June 2009 through June 2011, Spickenreuther misappropriated more than 50 checks payable to the company and diverted them to his own accounts.  He had pleaded guilty last November to one count each of wire fraud, money laundering and tax fraud.  Spickenreuther must also pay full restitution.

Read the story here and here.

Read the DOJ announcement of his guilty plea here.

Read the original Information filing here.

Iowa Woman Pleads Guilty To Embezzling $480K

Stacey Lynne Gross, 38, of Adel, Iowa, pleaded guilty to charges she embezzled at least $480,000 from Data Business Equipment, Inc., where she had been employed as a bookkeeper/office manager in charge of vendor payments.  According to authorities, over a period of about 4 years, from 2007 to 2011, Gross wrote at least 190 unauthorized checks from company coffers for her own benefit.  The checks went to pay for Gross' personal credit card, mortgage and to pay for furniture, jewelry and other personal expenses.  Gross also admitted to making false entries in the company’s books to conceal her embezzlement by entering the name of a real vendor as “payee” in the ledger.  Gross pleaded guilty to felony mail fraud and tax fraud charges and is scheduled to be sentenced on February 17, 2012.  As part of her plea agreement, Gross must also make restitution to Data Business Equipment, Inc.

Read the story here and here.

Hat tip: FraudTalk reader Joe.

Update (2/17/12): Gross was sentenced to 20 months in prison for embezzling what is now believed to be at least $518,000.   She was also ordered to pay full restitution. 

Alabama Woman Indicted For Embezzling Nearly $300K From Landscape Concern

Stacia Woodman, 36, of Leeds, Alabama, was indicted on charges she embezzled nearly $300,000 from J. Loper and Company, a local landscape company where she had been employed as a bookkeeper. According to prosecutors, Woodman "used" company checks to pay for personal expenses over a period of three years, from approximately January 2006 until February 2009. Woodman was indicted on 8 felony counts, including mail fraud and tax fraud and seeks forfeiture of $298,126 "as proceeds of illegal activity." The indictment also alleges Woodman failed to report some $190,000 of the embezzled proceeds as income to the IRS.

Read the story here and here.

Read the DOJ announcement here.

Update (5/24/11): Woodman was sentenced to 41 months in prison and ordered to pay restitution of $427,488, the amount ultimately determined she embezzled from J. Loper and Company.

Former Principal Of California Charter School Charged With Embezzling $1.4 Million

Edward Peter Fiszer, 40, of Newhall, California, pleaded not guilty Friday to charges he embezzled more than $1.4 million from the New Academy Canoga Park Charter School, where he had served as principal. According to authorities, in 2008 and 2009, Fiszer obtained at least 12 cashiers checks from school accounts and deposited them into a personal stock trading account. He has been charged with 31 counts of embezzlement, money laundering, forgery and tax fraud. Nevertheless, an audit by the Los Angeles Unified School District found that Fiszer had misappropriated or misused as much as $2.7 million. Sadly, as a result, the school is being considered for closure. Fiszer faces up to 44 years in prison if convicted on all counts.

Read the story here.

Update (11/1/10): Fiszer pleaded not guilty Friday to charges he embezzled more than $1.4 million from the New Academy Canoga Park Charter School. He faces up to 44 years in prison if convicted on all counts.

Former California Theater Manager Convicted Of Embezzling $300K

Kenneth Rae Kintsley, 42, of Walnut Creek, California, was convicted by jury of embezzling some $300,000 from the San Francisco Loews Metreon Theater where he had been employed as a manager. Prosecutors alleged that between September 2001 and January 2004, Kintsley skimmed cash from daily receipts from the theater. The jury convicted Kintsley after a five week trial on felony counts of embezzlement, grand theft, altering computer data and tax fraud,

Read the story here, here and here.

Missouri Man Sentenced For Embezzling $510K From Nuns

Paul Steven Murphy, 44, of St. Louis, Missouri, was sentenced to 46 months in prison Wednesday for embezzling more than $500,000 from the School Sisters of Notre Dame where he had been employed as head of information technology. According to prosecutors, from 2000 to 2007, Murphy submitted more than $510,000 in phony invoices to the school. He pleaded guilty last November on one count each of mail fraud and tax evasion. Murphy reportedly spent the loot to finance a lavish lifestyle, including luxury vacations, his wedding, jewelry and other personal items. Murphy owes $112,330 in back taxes to the IRS for the stolen income he did not report. He also owes restitution in the amount of $510,000. The School Sisters of Notre Dame, a religious and charitable teaching and missionary organization, is facing financial shortfalls as a result of Murphy's actions.

Read the story here and here.

Read the DOJ announcement here.

Alabama Woman Pleads Guilty In $1.2 Million Embezzlement Case

Kimberly Lynn Perrin, 40, of Birmingham, Alabama, pleaded guilty to federal charges of health care fraud, wire fraud, and tax fraud in connection with her alleged embezzlement of some $1.2 million from the Simon-Williamson Clinic in Birmingham, where she had been employed as company controller. According to prosecutors, Perrin misappropriated the funds over a 3 year period between 2005 and 2008, by causing checks to be issued to her and others for her own personal use. She faces up to 35 years in prison.

Read the story here.

Read the DOJ announcement here.

Update (3/11/10): Perrin, now 41, was sentenced yesterday to 30 months in prison for embezzling $1,197,074 from the the Simon-Williamson Clinic where she had been employed as controller.

Former New Mexico Secretary Of State Indicted For Misuse Of Voter Education Funds

Rebecca Vigil-Giron, 54, of Albuquerque, New Mexico, the former New Mexico Secretary of State, was indicted together with three other individuals on charges of fraud, tax fraud and money laundering in connection with the alleged misuse of federal funds for a voter education project. Together with Vigil-Giron, Democratic Party consultant Armando Gutierrez of Corpus Christi, Texas, and lobbyists Elizabeth and Joseph Kupfer of Rio Rancho were indicted on 50 counts each. Under the Help America Vote Act, more than $6 million for a voter education campaign was allotted, but investigators could only find proof that $2.5 million worth of work was done under Vigil-Giron's watch.

Read the story here, here and here.

Disbarred New York Lawyer Pleads Guilty To Embezzling Client Funds

Christopher Meyers, 46, of Mamaroneck, New York, pleaded guilty last week to embezzling nearly $300,000 from the estate of one of his clients and from several other clients. Meyers was disbarred early last year amid the investigation into charges of grand larceny and tax fraud. He has been ordered to make restitution to his clients and to pay nearly $20,000 in back taxes.

Read the story here and here.

Wisconsin Man Sentenced To 6 Years In $3.7 Million Fraud Against Clients & IRS

Daniel LaMarch, 56, of Green Bay, Wisconsin and the former co-owner Title Services also based in Green Bay, was sentenced Wednesday to six years in prison and ordered to pay $3.7 million in restitution for tax and wire fraud. According to prosecutors, between March 2002 and February 2008, LaMarch diverted some $1.5 million in client escrow accounts for his own benefit. He also failed to pay payroll taxes of more than $500,000 and did not report more than $100,000 of his own income, according to the complaint. LaMarch owned the title insurance business with his wife, Kay LaMarch. He was originally charged with 20 counts of failing to pay payroll taxes and filing false tax returns.

Read the story here and here.

Update On Petters Fraud Case: Accountant Pleads Guilty To Tax Fraud

James C. Wehmhoff, 67, of Plymouth, Minnesota, the former Executive Vice President for Petters Group Worldwide, pleaded guilty today to charges of tax fraud. Wehmhoff, the sixth person charged in the Petters ponzi-scheme fraud case, was accused of conspiracy to defraud and assisting in filing of false tax returns. Tom Petters was charged with fraud and money laundering in an alleged $3 billion ponzi scheme.

Read FraudTalk's earlier posts on the Petters case here and here.

Read the story here and here.

Maryland Couple Sentenced In Tax Fraud Scheme

Robert O. Steven, 55, of Edgewater, Maryland and Patricia A. Steven, 73, of Harwood, Maryland, were sentenced yesterday to nearly 4 and nearly 6 years in federal prison, respectively, for their roles in a tax refund scheme that defrauded the Washington, DC Office of Tax and Revenue out of nearly $50 million. They were each also ordered to pay $8,833,310.32 in a judgment, plus forfeit certain property, including two residences, vehicles and other items. The couple. pictured here and who are now estranged, were described as close friends and co-conspirators of convicted tax fraud schemer, Harriette Walters, who's exploits were previously outlined in FraudTalk here. Robert Steven was formerly a division director for the IRS in their New Carrollton office and a 22 year veteran of the agency. They were found guilty of depositing some $9 million in fraudulent tax refunds, orchestrated by Walters, into their own bank accounts. Patricia Steven and Walters reportedly went on extravagant shopping sprees and together with Robert Steven purchased two homes, Jaguars and expensive jewelry. Their tax fraud conspiracy dates back 16 years, according to authorities. Other conspirators in Walters' web include, Jayrece Turnbull, 34, of Bowie, Maryland, Harriette Walters’ niece, who pleaded guilty in the case. Ricardo R. Walters, 33, of Ft. Washington, Maryland, was sentenced on July 23, 2008 to 78 months in prison for his role in the case. Marilyn Yoon, 40, of Derwood, Maryland; Walter Jones, 33, of Essex, Maryland; and Connie Alexander, 53, of Bowie, Maryland have also pleaded guilty in the scheme.

Read the story here, here and here.

Read the DOJ announcement here.

Swiss UBS Executive Indicted In Massive Tax Fraud Scheme

Raoul Weil, 49, a Swiss citizen and Chairman and CEO Global Wealth Management & Business Banking for UBS AG, was indicted today in Miami for conspiring with US clients to avoid US federal taxes. The indictment alleges that between 2002 and 2007 Weil oversaw the Swiss bank's cross-border business, which helped about 20,000 U.S. clients conceal about $20 billion in assets in secret Swiss bank accounts and other off-shore accounts. He faces 5 years in prison, plus a $250,000 fine. Weil's indictment follows a conviction in June of another UBS executive, Bradley Birkenfeld, who plead guilty to similar charges.

Read the story here and here.

Maryland Entrepreneur & Philanthropist Sentenced To 9 Years In Fraud Case

Alan B. Fabian, 44, of Cockeysville, Maryland, was sentenced to 9 years in federal prison for perpetrating a $40 million fraud. Fabian was originally indicted on 26 fraud counts, but plead guilty in May to one count of mail fraud and one count of tax fraud. According to court documents, from March 2001 through June 2004, Fabian ran a Ponzi scheme, created a shell corporation called Strategic Partners International, forged invoices and wire-transfer receipts to defraud, Solarcom Inc., a Georgia-based company, and certain lenders into believing that he had purchased millions of dollars in computer equipment and claiming they owed him for the materials. He generated more than $32 million this way, according to reports. Prosecutors accused Fabian of lying repeatedly in court and with filing false tax returns.

Read the story here, here and here.

Read the FBI release here.