Former Minnesota Attorney Charged With Embezzling $2 Million

Michael Scott Margulies, 56 of Minneapolis, MN, was charged Wednesday with embezzling some $2 million from the law firm of Lindquist and Vennum where he had been a partner. Authorities allege Margulies misappropriated the funds over a 16 year period, from 1994 through 2010, through a variety of methods, including false documentation, fraudulent expense reports, false invoices and forged checks.. He faces up to 20 years in prison for the one count of wire fraud he has been charged with. Margulies, who had been with the law firm since 1987, has been disbarred.

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California Attorney Sentenced In $900K Embezzlement Scheme

Mel Wayne Campbell, 56, of Orange County, California, was sentenced to 4 years in prison for his role in an embezzlement scheme that bilked nearly $900,000 from Kia Motors America, Inc. Prosecutors alleged that Campbell conspired with his now former wife, Cecile Nhung Campbell, 55, a certified public accountant who was formerly employed at Kia Motors, along with her brother, Long Ngoc Ho, 50. Together, the trio misappropriated some $889,000 from the company by setting up a fake company called U.S. Customs Service Detail in 2002 and issuing phony invoices for which Cecile Campbell (pictured here) executed three large wire transfers for payment. Mel Campbell pleaded guilty Thursday to one felony count of receiving stolen property and three felony counts of money laundering, and sentencing enhancements for aggravated white collar crime and property damage. Mel Campbell has resigned from the Bar. Cecile Campbell faces up to nearly 17 years in prison while Ho faces up to 12 years.

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Nevada Woman Sentenced For Embezzling More Than $200K From Veterinarian

Michele Davenport, aka Michele Mahoney, 45, of Reno, Nevada, was sentenced to 8 years in prison for embezzling $213,221 from Davyd Pelsue, a local veterinarian, for whom she had been employed as office manager. Davenport reportedly used some of the ill-gotten gains to pay for lavish vacations, remodeling her home, gourmet food and other luxury items. Authorities alleged that she misappropriated the funds over a four year period. She plead guilty to the charges last year.

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FBI Releases Crime Statistics For 2009 - Drop Seen

The Federal Bureau of Investigation today released its annual report on crime statistics for 2009 indicating a drop in both violent and property crimes, which includes larceny/theft cases. According to the preliminary report, violent crime in the US decreased 5.5 percent and property crime declined 4.9 percent from 2009 over the prior year. The report, entitled Preliminary Annual Uniform Crime Report, runs counter to conventional wisdom, which would suggest that crimes of all types, including and especially white collar (property) crimes, would increase during economic down turns. Given that 2009 appears to have been the toughest year economically in decades, one would expect higher crime rates compared to 2008 (although that was not a great year either).

Read about the report here.

Read the full report here.

Former California Accountant Sentenced In $50 Million Ponzi Scheme Case

Roberto Heckscher, 56, of San Mateo, California, was sentenced to 20 years in prison for running a $50 million Ponzi-type fraud scheme that bilked investors out of as much as $50 million over a three decade period. Heckscher pleaded guilty last October to one count of mail fraud. He was also ordered to pay full restitution to his victims. In a prepared statement made to the court, Heckscher said he had started the scheme in 1979 after suffering big stock market losses and was never able to pull himself out of the hole he created. The scheme fell apart last June after he ran out of money and could not recruit any new investors. Heckscher was the owner of Irving Bookkeeping and Taxes in San Francisco and promised investors returns of as much as 13 percent returns on commercial loans. According to reports, Heckscher attempted suicide by overdosing on pills after his scheme unravelled. Heckscher is reportedly a big gambler.

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Former Bookkeeper At Delaware Law Firm Sentenced For $170K Embezzlement Scheme

Wendy Ann Davis, 44, of Bear, Delaware, was sentenced to 15 months in prison for embezzling some $170,000 from the law firm of Green, Green, Godowsky and McFadden where she had been employed as an office manager and bookkeeper for 24 years. Davis must also pay full restitution. According to authorities, Davis' scheme spanned a nine year period from 2001 until 2010. Davis pleaded guilty to 13 counts of mail fraud in February. She reportedly stole funds by issuing checks from law firm accounts and client escrow accounts.

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Former North Carolina Banker Charged In Fraudulent Invoice Scheme That Bilked Wachovia Out Of $11.2 Million Over 9 Years

Terry Scott Welch, 47, of Mooresville, North Carolina, was charged with misappropriating $11.2 million from Wachovia Bank where he had been employed as a vice president in charge of overseeing vendor payments. According to prosecutors, Welch conspired with a series of vendors to submit false invoices for goods and services the bank never received and received kickbacks in exchange. Specifically, Welch was arrainged on charges of mail fraud and tax evasion. Two other co-conspirators, John Cousar Jr., 47, of Albemarle and Delmar Dove, 59, of Charlotte were also charged with mail fraud and tax evasion. Other vendors provided goods and services to Welch, including renovations to his home and his relatives' homes, purchased golf carts, televisions, jet skis and gas grills, among other items. Authorities allege that Welch's scheme spanned 9 years.

Read the story here and here.

Hat tip: Reader Joe.

Update (6.17.10): Welch pleaded guilty to mail fraud and tax evasion charges yesterday.

Update (7/5/11): Welch, now 48, was sentenced to 70 months in prison and ordered to pay $12.9 million in restitution.  Cousar was sentenced to nearly 3 years in prison for his part in the scheme.

Former Police Cadet In California Charged With Embezzling $225K From Municipality

Kainat Syeda, 23, of Buena Park, California, has been charged with misappropriating more than $225,000 in cash fees paid to the City of Anaheim for release of impounded vehicles. Specifically, Syeda was charged with one felony count of the misappropriation of public funds, four felony counts of falsifying and altering records maintained at a public office, and 40 felony counts of the falsification and concealment of public accounts. Syeda is a former police cadet with the Anaheim Police Department. She is accused of stealing the cash payments for impound fees and then entering "no sale" at the department cash register on nearly 1,800 occasions over a period of more than three years from January 2006 and April 2009.

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Former Church Secretary In Georgia Charged With Embezzling As Much As $400K

Dawn Taylor Robinson, 40, of Buchanan, Georgia, has been arrested and charged with 332 counts of theft by taking in connection with her alleged embezzlement of as much as $400,000 from the Victory Fellowship Church in Bremen, where she had been employed as a secretary. Authorities believe Robinson misappropriated from the church's building fund over a ten year period.

Read the story here and here.

Update (5/5/12): Robinson has pleded guilty to eight charges felony theft by taking.

Two Ohio Men Charged In $150K Fraudulent Billing Scheme

John Joseph Briggle, 56, and Leonard P. Gorski, 55, both of Toledo, Ohio, have been charged with bilking the Toledo Hospital out of some $150,000 in a fraudulent billing scheme. According to authorities, over a two year period from May 2002 until July 2004, Briggle's printing company billed the hospital for supplies and services that were not delivered. Gorski, who was allegedly complicit in the fraudulent billings, was employed in the hospital's print shop during that time. They each of plead not guilty to charges of aggravated theft. Separately, we note that Briggle (pictured here) has been charged in Cuyahoga County in an unrelated case involving the alleged embezzlement of money from Cleveland Public Schools with a co-defendant, Dan Burns.

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California Mother-Daughter Charged In $2.3 Million Fraudulent Real Estate Scheme

Alice Kantin, 69 and her daughter, Dawn Marie Kantin, (pictured here at a court hearing) 37, both of Kern County, California, were charged with defrauding at least 32 individuals out of some $2.3 million in fraudulent a real estate scheme. According to authorities, the mother-daughter team ran Desert Air Real Estate Investments Inc., which offered "rent-to-own" agreements, purportedly taking titles on distressed properties and accepting rent that would go toward paying the mortgage. However, from at least August 2007 through June 2009, the Kantins are alleged to have kept the rent monies and allowed the mortgages to be foreclosed upon. They have each pleaded not guilty to the charges which include 44 counts of conspiracy, embezzlement, theft, notary fraud and forgery.

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Former Oregon Bookkeeper Sentenced In $742K Embezzlement Scheme From Tire Company

Aleda Zonn Carter, 47, of Turner, Oregon, was sentenced yesterday to nine and a half years in prison for embezzling more than $742,000 from Superior Tire Service in Salem, where she had been employed as lead bookkeeper, reporting directly to the company CFO. Authorities believe Carter embezzled between $860,000 and $1 million over a ten year period by making bi-monthly electronic transfers of funds directly into her own accounts. However, there is a six year statute of limitations and she was only charged with that portion. Carter previously pleaded guilty to seven charges of aggravated theft.

Read the story here.

Former North Carolina Municipal DSS Worker Pleads Guilty To Misappropriating At Least $112K

Cindy Brady, 50, of Charlotte, North Carolina, pleaded guilty to charges she misappropriated at least $112,000 from Mecklenburg County Department of Social Services, where she had been employed. Prosecutors allege that Brady received numerous fraudulent reimbursements for fake purchases of items for the agency's Giving Tree program, a program used to buy Christmas gifts for needy children and families. Authorities believe that between 2007 and 2009 Brady created false receipts and then submitted them to DSS for the phony purchases. She is also accused of using agency funds to pay as much as $30,000 in personal credit card charges. Brady faces up to 10 years in prison, plus fines and restitution.

Read the story here and here.

Update (6/30/11): Brady, now 51, was sentenced to 6 months in federal prison.  The total loss has now been determined to be about $120,000.

Delaware Woman Charged In $300K Embezzlement Scheme

Karen C. Hunt, 48, of Old New Castle, Delaware, was charged yesterday with embezzling nearly $300,000 from Aquilla of Delaware, a local adolescent drug and alcohol treatment center, where she had been employed as a bookkeeper and billing manager. Specifically, Hunt was charged with felony theft and six counts of falsifying business records in a scheme where she allegedly deposited reimbursement checks into her personal checking account and then falsified the books and records to hide the thefts. Authorities believe that over a five year period, from April 13, 2005 to April 5, 2010, Hunt deposited at least 343 checks meant for deposit for Aquilla into her account totaling $296,902.50.

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Former Vermont Office Manager Pleads Guilty To Embezzling Nearly $300K

Laura Giles, 49, of Colchester, Vermont, pleaded guilty yesterday to charges she embezzled some $290,000 from the Occupational Disability Management Center in Burlington, where she had been employed as office manager. Specifically, Giles plead guilty to felony counts of wire fraud and filing false tax returns. Authorities alleged that Giles misappropriated checks from the agency over a five year period from 2004 to 2009. She faces up to 20 years in prison, plus fines and restitution, upon sentencing, scheduled for August 30, 2010.

Read the story here and here.

Update (8/30/10): Giles was sentenced to 21 months in prison and must pay full restitution of $289,612.84.

Former Head Of URI School Of Education Sentenced For Two Embezzlement Schemes That Netted $2.2 Million

Robert D. Felner, 59, formerly of Jamestown, Rhode Island and the former director of the University of Rhode Island’s School of Education, was sentenced yesterday to 63 months in federal prison for embezzling a total of about $2.2 million from URI and the University of Louisville where he had been an administrator. According to prosecutors, Felner, together with a co-conspirator and former student, Thomas Schroeder of Port Byron, Illinois, engaged in a scheme to embezzle $1.64 million from URI's School of Education which he founded, plus another $560,000 from the University of Louisville where he later became a dean. Felner was also ordered to pay restitution in the amount of $510,000 to the University of Louisville, $1.64 million to URI and $88,750 to the Rock Island County Council on Addiction in Illinois that authorities say the defendants also defrauded. Felner was the director of the URI School of Education from 1996 to 2003 and then became a dean at the University of Louisville. Prosecutors alleged that from 2001 to 2008, Felner and Schroeder funnelled funds into a dummy nonprofit organization called the National Center on Public Education and Prevention. They were indicted in October 2008 with 10 counts of mail fraud, conspiracy to commit money laundering and income tax evasion. Felner plead guilty this past January. The two were also charged with tax evasion for the years 2002 - 2007.

Read the story here, here and here.