Former Pastor In Ohio Found Guilty In $1 Million Embezzlement Case

David A. Thompson, of Canal Winchester, Ohio and believed to be in his late 40s, was found guilty today of embezzling more than $1 million from his church, The World of Pentecost Church in Columbus, where he had served as pastor. Specifically, Thompson was found guilty on charges of theft, money laundering and tampering with records by a Franklin County Common Pleas judge. Prosecutors alleged that Thompson misappropriated funds from the church over a 9 year period from 1998 to 2007. He was charged with the thefts in 20 felony counts in late February 2009 and was alleged to have stolen funds from the church's building and assistance funds which he spent to support a lavish lifestyle, including expenditures on luxury cars, a pool, a boat and hair treatments. Thompson became pastor in 1995. He faces nearly 90 years in prison upon sentencing, scheduled for December 1, 2010.

Read the story here , here and here.

Update (12/2/10): Thompson was sentenced yesterday to 5 years in prison and must pay $733,000 in restitution.

Athletics Director For South Carolina High School Charged With Embezzling $135K

Bryan Butz, 46, of Batesburg-Leesville, South Carolina, has been charged with embezzling $135,596 from the White Knoll High School, where he had served as athletics director. According to authorities, Butz misappropriated the funds from an expenditure account meant to pay for sporting equipment, travel and jerseys. Among other things, Butz allegedly used a school debit card for the account to withdraw cash which he used for his own benefit. He became the athletic director in 2006 and was paid a salary of $80,000. According to authorities, Butz' thefts spanned more than a four year period, from June 2006 until September 2010.

Read the story here, here and here.

Watch a video on the story here.

Update: New Mexico Man Avoids Criminal Trial After Alleged $140K Embezzlement & Arson

Martin Glen Pyke, 44, of Socorro, New Mexico, reached an agreement with authorities to enter into a Pre-Prosecution Diversion program after he was accused of embezzling nearly $140,000 from the Fraternal Order of Eagles Club of Socorro where he had been served as gaming manager. Pyke allegedly set fire to the building in an attempt to cover up the thefts. Pyke allegedly misappropriated from the club from June 2005 until March 3, 2006, when he reportedly attempted to burn it down. As part of the agreement, Pyke must pay $137,828.55 in restitution and must maintain undisclosed terms of a probation. He was originally charged in February 2009 with eight felony embezzlement counts, one second-degree count of arson, two third-degree felony tampering with evidence charges and eight fourth-degree felony reporting and record violations related to gaming machines at the club. Pyke reportedly has a history of financial problems and a gambling habit.

Read FraudTalk's earlier post on this story here.

Read the story here and here.

Former Credit Union Exec In Western Massachusetts Pleads Guilty To Embezzling $225K

Robert W. Koss, 72, of Ludlow, Massachusetts, pleaded guilty yesterday to charges he embezzled $225,000 from the Western Massachusetts Electric Co. Credit Union which he had managed for 30 years. According to prosecutors, over a period of at least 7 years, from at least 1999 until his retirement in 2006, Koss submitted fraudulent expense reports, either inflating or inventing them. Koss pleaded guilty to embezzlement and filing a false tax return and has agreed to pay about $130,000 in restitution - he has already paid back about $80,000. Koss is scheduled to be sentenced on January 21, 2010 and faces up to 33 months in prison. Read the story here and here. Update (3/29/11): Koss was sentenced to just four years probation.

Former Postmaster In Oklahoma Pleads Guilty To Embezzling $624K

James E. Draheim, 63, of Elgin, Oklahoma, pleaded guilty yesterday to charges he embezzled $642,808 from the Elgin, Oklahoma Post Office where he had served as Postmaster. According to prosecutors, Draheim misappropriated the funds over a period of about four years, from October 2005 to September 2009. As part of the plea agreement, Draheim pleaded guilty to theft of public funds and filing a false tax return and must repay the $624,808 he stole. Prosecutors alleged that he took money from postal customers for bulk mailings but did not fully credit their accounts, misappropriating the remainder. He faces up to 10 years in prison, plus a fine of up to $250,000 and additional restitution to the IRS for taxes owed from 2005 through 2009.

Read the story here and here.

Former Fire Department Dispatcher From Long Island Charged In $200K Embezzlement Scheme

George William Gray, 68, formerly of Glen Cove, New York and currently of Hendersonville, North Carolina, was arrested this morning and charged with embezzling $196,000 from the Glen Cove Fire Department where he had been employed for 44 years, most recently as its dispatcher. According to authorities, Gray issued some 300 checks to cash, sometimes forging the name of the department's treasurer, and used the funds to pay his personal bills. Gray has been charged with one count of grand larceny, 104 counts of criminal possession of a forged instrument, and three misdemeanor charges of official misconduct. The scheme spanned at least six years, from 2003 to 2009, according to authorities.

Read the story here and here.

Mississippi Couple Plead Guilty To Misappropriating Nearly $700K From Insurance Company

Elizabeth Rainey and Robert Rainey, of Southaven, Tennessee, pleaded guilty to charges they misappropriated $678,704.26 from Direct General Insurance Company of Memphis, Tennessee. According to authorities, Elizabeth Rainey was a claims adjuster for Direct General and issued fraudulent claims checks to herself and her husband, Robert Rainey. The scheme spanned more than four years from December 3, 2004, and March 6, 2009, according to reports.

Read the story here and here.

Hat tip: Reader Joe.

Former Financial Assistant Of New Orleans Saints Owner Charged With Embezzling Nearly $1.5 Million From 5 Companies

Charlotte Troxler, 46, of Luling, Louisiana, has been charged with embezzling nearly $1.1 million from three companies owned by Tom Benson - the owner of the New Orleans Saints, where she had served as the long-time financial assistant. According to a criminal information filed against her, Troxler wrote checks from company accounts of Benson Properties, Benson Football L.L.C., and Bensco of Louisiana, L.L.C., payable to phony and unauthorized payees, which she then deposited into her own accounts. The thefts reportedly occurred over a period of at least two years, from at least 2004 until 2006. However, the thefts could have spanned as long as 21 years, beginning in 1985, when she was first hired by Tom Benson. Troxler allegedly stole $1,066,038.45 from Tom Benson's companies. Troxler is also accused of embezzling from Leson Chevrolet Company and Ray Brandt Automobile Dealership, where she had been employed as financial controller. Troxler was employed by Leson Chevrolet for about 3 months in 2009 and Ray Brant Autos from November 2008 to July 2009. The criminal information alleges Troxler embezzled a total of $196,316.08 from Leson Chevrolet and $228,316.22 from Ray Brant Autos. Troxler owns a beauty salon, Vous Salon & Spa, located in Paradis, Louisiana, which she started in late 2005.

Read the story here, here and here.

Read the criminal information here and read the DOJ announcement here.

I wonder where the money came from to start the salon???

Hat tip: Reader Joe.

Update (11/10/10): Troxler pleaded guilty as charged in the Bill of Information. Sentencing is scheduled for March 1, 2011.

Update (4/7/11): Troxler was sentenced to 46 months in prison ordered to pay $1,066,038.45 in restitution. 

Montana Business Owner Accused Of Misappropriating $144K From Employee Benefit Plans

Michael Paul Molitor, 44, of Boulder, Montana, has been accused in two civil federal lawsuits alleging he misappropriated $144,400 from employee retirement accounts at his company, M.S. Molitor Trucking and MD Service. According to the suits, Molitor, over a period of 3 1/2 years between September 1, 2004 through March 31, 2008, failed to make deposits of funds taken from employee paychecks. Read the story here. Update (4/1/11): Molitor has been sentenced to five years probation with one year house arrest, and ordered to pay $37,891 in restitution.

Former City Manager In New Mexico Accused Of Embezzling $150K

Eva Sanchez-Bruce, believed to be in her mid-40s, of Lea County, New Mexico, has been accused of embezzling $150,000 from the municipality of Jal, New Mexico, where she had served as city manager. According to authorities, Sanchez-Bruce deposited a check for $150,000 from city coffers into her own bank account. Her lawyer reportedly claimed that the check was deposited by mistake. Two judges have had to recuse themselves from the case due to personal relationships with the defendant or her husband, Rick Bruce, who is the Lea County co-manager. Sanchez-Bruce recently resigned her position.

Read the story here and here.

California Woman Arrested For Alegedly Embezzling $720K

Carmen Ascencio, 37, of Rancho Cucamonga, California, was arrested this week on suspicion she embezzled more than $720,000 from Corrections Canteen, a division of the Compass Group, where she had been employed as branch manager. Authorities were at the business conducting an unrelated investigation when Ascensio quit her job. An audit then reportedly revealed the thefts. Authorities believe that over a five year period, from January 2005 and February 2010, Ascensio caused the accounting system to issue herself extra checks and then made false entries into the system.

Read the story here.

Update (12/6/10): Ascencio was sentenced to 16 months in prison for embezzling more than $720,000 from Corrections Canteen, where she had been a branch manager.

Embezzlement: It Can Happen To You

The Abilene Reporter-News published an article today about how common embezzlement schemes are today and what organizations can do about it. According to the article, several Abilene-based businesses, including Hendrick Health System, Cary Services, Pee Wee Jets Pop Warner Football Team and KGNZ Radio, all recently experienced embezzlements by trusted employees. The article suggests the following steps to prevent embezzlement:

• Conduct background checks;
• Separate accounting duties;
• Require time off for accounting staff;
• Require multiple signatures; and
• Conduct surprise audits

The article also quotes Marquet International statistics from our Annual Report On Embezzlement.

FraudTalk profiled the Hendrick Health System case here.

Read the whole article here.

Former Vermont State Worker Indicted On Charges She Misappropriated Nearly $500K

Kathy J. Lantagne, 46, of Charleston, Vermont, has been indicted on charges she embezzled some $490,000 from the Vermont Department of Children and Families where she had served as a supervisor in its economic services division. According to the indictment, over a five year period between August 2004 and October 2009, Lantagne caused at least 250 checks to be issued to parties that were not owed funds and subsequently mailed them to her sister, Deborah Tuller, 54, of Newport, Vermont, who then deposited them into accounts the two controlled. They then used the misappropriated funds to pay for personal expenses. Tuller has reportedly reached a plea agreement with prosecutors in the case. Lantagne reportedly had been an employee of Vermont's Agency of Human Services, in which the Department of Children and Families lies, for 19 years.

Read the story here, here and here.

Update (10/11/10): Lantagne pleaded not guilty last week to the charges.

Update (2/18/11): Deborah Tuller, Lantagne's sister, was sentenced to 13 months in prison for her role in this embezzlement scheme. Tuller pleaded guilty to mail fraud and filing a false tax return.

Update (3/3/11): Lantagne is now expected to plead guilty, according to her attorney, Mark Kaplan.

Update (4/25/11): The Burlington Fee Press' Nancy Remsen has done a terrific spread on the Lantagne case in their current paper. Read the whole article here.

Update (6/30/11): Lantagne, now 47, has been sentenced to 33 months in prison plus three years of probation.  She and her sister, Deborah Tuller, must also pay restitution of $490,471.

Missouri Woman Indicted On Charges She Embezzled $250+K

Diana Kay Erickson, 45, of Aurora, Missouri, was indicted on charges she embezzled a total of $252,848 from two companies she had been employed at as a bookkeeper. The 16 count indictment charges Erickson with counterfeiting checks and mail fraud. It alleges that between September 7, 2006, and April 2, 2008, Erickson embezzled $219,606 from Superior Lifts, Inc. and between March 14, 2006, and December 18, 2006, she embezzled $34,242 from Goolsby Rental Properties, a related company. According to the indictment which was unsealed today, Erickson forged checks issued to herself which she deposited into her own accounts. She is also alleged to have deposited customer rent checks into her own accounts.

Read the story here, here and here.

Update (7/7/11): Erickson pleaded guilty yesterday and faces up to 23 years in prison.

Update (11/21/11): Erickson, now 46, has been sentenced to 33 months in prison. 

California Woman Charged With Embezzling $250K

Julie Salata, 40, formerly of Maxwell, California, has been charged with embezzling some $250,000 from the Doherty Brothers farm where she had been employed as a bookkeeper. According to authorities, Salata engaged in "suspicious transactions" that enabled her to misappropriate the funds over a period of nearly two years from January 2004 and December 2005. She has been charged with embezzlement and grand theft.

Read the story here.

Former Bank Exec In Utah Pleads Guilty To $200K Embezzlement Scheme

Gavin Gabriel Larkin, 35, of St. George, Utah, pleaded guilty yesterday to one count of embezzlement and misapplication of bank funds for misappropriating some $200,000 from the St. George branch of US Bank where he had served as an officer. According to prosecutors, Larkin embezzled the funds over a period of about six months, from April 2008 to August 2008, by creating a fraudulent line of credit in the name of a phony business, St. George Legal Documents and transferred the funds to a checking account he controlled and then obtained cash or cashier's checks for his own personal benefit. He faces up to 30 years in prison, plus a fine of up to $1 million and restitution upon sentencing, scheduled for December 7.

Read the story here and here.

Update (12/9/10): Larkin was sentenced to 21 months in prison, plus 5 years probation. He was also ordered to pay $192,000 in restitution.