From the Santa Clara Valley Signal on 11/6/2014:
A former finance manager of a television production studio was sentenced this
morning to two years in federal prison for embezzling approximately $2.5 million
from the Culver City company.
Nolan Mitchell Ransdell, 41, of Canyon Country, was sentenced by United
States District Judge George Wu. In addition to the prison term, Judge Wu
ordered Ransdell to pay $2,458,589 in restitution.
Ransdell previously pleaded guilty to bank fraud and admitted that he stole
money from his employer, Studio Lambert USA, which is now known as All3Media
America. Ransdell embezzled the money in several ways, including forging an
executive’s signature on checks Ransdell had made out to himself. Ransdell also
took checks that the executive had pre-signed for “emergency” use and made
himself the payee.
In addition, Ransdell made checks payable to a
subordinate, and then instructed that employee to cash the checks and return the
money to him. Ransdell also made unauthorized cash withdrawals from Studio
Lambert’s bank accounts.
Studio Lambert USA, a subsidiary of a British
studio, produced television shows for distribution in the United States,
including Undercover Boss.
Studio Lambert’s parent company noticed that
the accounting for the production accounts was not consistent with the
accounting for the corporate accounts.
When asked to explain the
differences, Ransdell made up excuses, for instance, saying that discrepancies
were the result of payment delays in connection with prepaid debit cards.
...
Read the whole story here.
Thursday, November 6, 2014
County Fire Official In Pennsylvania Sentenced For Embezzling More Than $250K
From CBS Philly on 11/6/2014:
The former treasurer of a Montgomery County fire company is headed to prison for stealing more than a quarter of a million dollars over a period of several years.
Sixty-three-year-old Ronald Nolan apologized to the nearly dozen members of the Upper Gwynedd Fire Company who turned out for his sentencing. The Skippack, Pennsylvania man was sentenced to eleven-and-a-half to 23 months in the county jail followed by ten years probation. Prosecutors say he embezzled the money using fire company credit cards and cash advances. Prosecutor Laura Adshead says the thefts impacted the department.
“For years, they were told they didn’t have enough money to get new gear, new safety equipment,” she says, “so that really put them at risk.”
Adshead says the theft took not only a financial toll on the company but an emotional one.
“This was someone who had been a member for years,” she says, “someone they trusted and that really impacted the camaraderie of the fire department.”
Adshead says Nolan went on lavish vacations and paid for his daughter’s wedding with some of the money that was supposed to support the community.
He was also ordered to make restitution which he has started doing.
The former treasurer of a Montgomery County fire company is headed to prison for stealing more than a quarter of a million dollars over a period of several years.
Sixty-three-year-old Ronald Nolan apologized to the nearly dozen members of the Upper Gwynedd Fire Company who turned out for his sentencing. The Skippack, Pennsylvania man was sentenced to eleven-and-a-half to 23 months in the county jail followed by ten years probation. Prosecutors say he embezzled the money using fire company credit cards and cash advances. Prosecutor Laura Adshead says the thefts impacted the department.
“For years, they were told they didn’t have enough money to get new gear, new safety equipment,” she says, “so that really put them at risk.”
Adshead says the theft took not only a financial toll on the company but an emotional one.
“This was someone who had been a member for years,” she says, “someone they trusted and that really impacted the camaraderie of the fire department.”
Adshead says Nolan went on lavish vacations and paid for his daughter’s wedding with some of the money that was supposed to support the community.
He was also ordered to make restitution which he has started doing.
Wednesday, November 5, 2014
Florida Former Elections Official Given Curfew After Failing To Make Restitution Payments In $325K Embezzlement Case
From the Bradenton Herald on 11/5/2014:
A former Manatee assistant supervisor of elections convicted of embezzling more than $300,000 had a curfew added to the terms of her probation after she was arrested when she stopped making restitution payments.
Dawn Marshall, also known as Dawn Marshall-Smith, was convicted of grand theft and scheming to defraud in November 2000 after she embezzled more than $300,000 from the Manatee County Supervisor of Elections Office by funneling the money through a bogus account.
Marshall was sentenced to 26 1/2 months sentence in the Florida Department of Corrections and was released about five months early. She was also ordered to serve two years house arrest and 25 years probation. After her release from prison, she was ordered to repay $325,000 in monthly installments to Manatee County.
On Jan. 14, Marshall was arrested for violation of probation for making inconsistent payments.
Marshall entered into a plea agreement on Tuesday, and Circuit Judge John Lakin ordered she be placed on a curfew from 6 p.m. to 6 a.m. for the next 24 months as a new condition to her probation.
Marshall did not address the court but became emotional at the onset of the hearing.
After the plea and sentencing, Lakin told Marshall that the restitution component of the case was very important.
"No one deserves a free pass, you don't have a free pass once this money is stolen. You have an obligation to repay that money," Lakin said. "The law is about accountability. ... It is about responsibility and accountability. You don't get a free pass."
County Attorney Mitchell Palmer represented the victim, the county government, and addressed the court prior to sentencing.
"Her payments have been spotty over the years," Palmer said. "I am here on behalf of the taxpayers."
Palmer urged the court to remain firm with Marshall.
"We are looking for her to remain steady with those restitution payments," Palmer said.
When she was arrested, Marshall was about $48,000 in arrears, according to her probation officer. She currently still owes the county more than $214,000.
A former Manatee assistant supervisor of elections convicted of embezzling more than $300,000 had a curfew added to the terms of her probation after she was arrested when she stopped making restitution payments.
Dawn Marshall, also known as Dawn Marshall-Smith, was convicted of grand theft and scheming to defraud in November 2000 after she embezzled more than $300,000 from the Manatee County Supervisor of Elections Office by funneling the money through a bogus account.
Marshall was sentenced to 26 1/2 months sentence in the Florida Department of Corrections and was released about five months early. She was also ordered to serve two years house arrest and 25 years probation. After her release from prison, she was ordered to repay $325,000 in monthly installments to Manatee County.
On Jan. 14, Marshall was arrested for violation of probation for making inconsistent payments.
Marshall entered into a plea agreement on Tuesday, and Circuit Judge John Lakin ordered she be placed on a curfew from 6 p.m. to 6 a.m. for the next 24 months as a new condition to her probation.
Marshall did not address the court but became emotional at the onset of the hearing.
After the plea and sentencing, Lakin told Marshall that the restitution component of the case was very important.
"No one deserves a free pass, you don't have a free pass once this money is stolen. You have an obligation to repay that money," Lakin said. "The law is about accountability. ... It is about responsibility and accountability. You don't get a free pass."
County Attorney Mitchell Palmer represented the victim, the county government, and addressed the court prior to sentencing.
"Her payments have been spotty over the years," Palmer said. "I am here on behalf of the taxpayers."
Palmer urged the court to remain firm with Marshall.
"We are looking for her to remain steady with those restitution payments," Palmer said.
When she was arrested, Marshall was about $48,000 in arrears, according to her probation officer. She currently still owes the county more than $214,000.
Tuesday, November 4, 2014
Alabama Man Pleads Guilty To $393K Embezzlement Scheme
From The Gadsden Times on 11/4/2014:
A former charter bus and tour company worker has pleaded guilty to embezzling hundreds of thousands of dollars from the company.
AL.com reports (http://bit.ly/1pi2KZA) 43-year-old Jerry Sulzby pleaded guilty Friday to stealing more than $393,300 from the company during a roughly 18 month period.
Sulzby, who worked as a bookkeeper for the Sumiton-based company, was charged with bank fraud. Investigators say Sulzby wrote checks for more than the amount necessary for petty cash or employee payments, cashed them and kept the money. Authorities say Sulzby also printed out extra payroll checks for himself, deleted them from company records and occasionally forged the endorsements.
Sulzby has been ordered to pay restitution and he's scheduled to be sentenced Nov. 13. Sulzby's attorney Michael Whisonant Jr. says he's genuinely sorry for his mistakes.
A former charter bus and tour company worker has pleaded guilty to embezzling hundreds of thousands of dollars from the company.
AL.com reports (http://bit.ly/1pi2KZA) 43-year-old Jerry Sulzby pleaded guilty Friday to stealing more than $393,300 from the company during a roughly 18 month period.
Sulzby, who worked as a bookkeeper for the Sumiton-based company, was charged with bank fraud. Investigators say Sulzby wrote checks for more than the amount necessary for petty cash or employee payments, cashed them and kept the money. Authorities say Sulzby also printed out extra payroll checks for himself, deleted them from company records and occasionally forged the endorsements.
Sulzby has been ordered to pay restitution and he's scheduled to be sentenced Nov. 13. Sulzby's attorney Michael Whisonant Jr. says he's genuinely sorry for his mistakes.
North Dakota Woman Pleads Guilty To Embezzlement; Prosecutors Allege $275K Theft From Hospital Gift Shop
From KFYR TV on 11/3/2014:
A 64-year-old Bismarck woman admits to embezzling money from the Sanford Medical Center auxiliary gift shop. But, she says the amount of money she owes isn't correct.
Marlys Aune appeared in court Monday for a restitution hearing. The prosecution says Aune owes more than $273,000. Aune says she told a police investigator she took about $300 a week for three years, an amount closer to $45,000 and that's the amount she should owe the hospital.
Witnesses testified that prior to Aune's hiring in 1996, the gift shop donated $305,000 in five years, and from 1996 to 2012 it only donated $26,000 to $30,000.
A 64-year-old Bismarck woman admits to embezzling money from the Sanford Medical Center auxiliary gift shop. But, she says the amount of money she owes isn't correct.
Marlys Aune appeared in court Monday for a restitution hearing. The prosecution says Aune owes more than $273,000. Aune says she told a police investigator she took about $300 a week for three years, an amount closer to $45,000 and that's the amount she should owe the hospital.
Witnesses testified that prior to Aune's hiring in 1996, the gift shop donated $305,000 in five years, and from 1996 to 2012 it only donated $26,000 to $30,000.
California Man Charged With Embezzlement & Misappropriation Of Public Funds To The Tune Of $570K
From the Orange County Register on 11/3/2014:
A county contractor accused of using the company credit card for upgrades on his Hawaiian vacation home was charged Monday with embezzlement and misappropriation of public funds, officials said.
Brian Cleveland Dunn, 61, of Capistrano Beach is accused of falsifying invoices for more than $130,000 submitted to the county for reimbursement and embezzling more than $440,000 by making unauthorized payments with his company’s credit card, according to a statement from the Orange County District Attorney’s Office.
Dunn is charged with misappropriation of public funds and grand theft by embezzlement, with sentencing enhancements of aggravated white-collar crime, property damage and property loss. If convicted, he faces up to 11 years in prison.
Dunn, who pleaded not guilty to the charges, was released from custody in lieu of $200,000 bail. He is scheduled to appear in court again Nov. 20.
Reached by phone, Dunn declined to comment and referred questions to his attorney, Gary Pohlson. Pohlson couldn’t be reached for comment Monday.
Between 2008 and 2012, Dunn, a former manager for Vintage Marina Partners, a company that manages the commercial core in Dana Point Harbor, is accused of purchasing landscaping materials for county projects from his private business and then marking up the price of his purchase by 100 percent.
He is accused of overbilling the county for more than $130,000.
Between 2007 and 2011, Dunn allegedly used Vintage Marina Partners’ company credit card for more than $400,000 in personal expenses including purchases on clothing, travel and improvements to his home in Hawaii, officials said.
A county contractor accused of using the company credit card for upgrades on his Hawaiian vacation home was charged Monday with embezzlement and misappropriation of public funds, officials said.
Brian Cleveland Dunn, 61, of Capistrano Beach is accused of falsifying invoices for more than $130,000 submitted to the county for reimbursement and embezzling more than $440,000 by making unauthorized payments with his company’s credit card, according to a statement from the Orange County District Attorney’s Office.
Dunn is charged with misappropriation of public funds and grand theft by embezzlement, with sentencing enhancements of aggravated white-collar crime, property damage and property loss. If convicted, he faces up to 11 years in prison.
Dunn, who pleaded not guilty to the charges, was released from custody in lieu of $200,000 bail. He is scheduled to appear in court again Nov. 20.
Reached by phone, Dunn declined to comment and referred questions to his attorney, Gary Pohlson. Pohlson couldn’t be reached for comment Monday.
Between 2008 and 2012, Dunn, a former manager for Vintage Marina Partners, a company that manages the commercial core in Dana Point Harbor, is accused of purchasing landscaping materials for county projects from his private business and then marking up the price of his purchase by 100 percent.
He is accused of overbilling the county for more than $130,000.
Between 2007 and 2011, Dunn allegedly used Vintage Marina Partners’ company credit card for more than $400,000 in personal expenses including purchases on clothing, travel and improvements to his home in Hawaii, officials said.
Monday, November 3, 2014
Washington State Woman Charged With Embezzling $100K From Mining Concern
From The Daily News on 10/31/2014:
A Longview woman has been accused of embezzling more than $100,000 and forging numerous checks from the bank accounts of her former business partner and their mining company.
Angeline Danielle Bredfield, 40, has been charged with one count of first-degree theft, one count of first-degree identity theft and 32 counts of forgery in Cowlitz County Superior Court, according to documents. County deputies arrested Bredfield Wednesday.
Bredfield’s business partner and alleged ex-boyfriend, Longview doctor Vladimir Bogin, reported embezzlement from the couple’s company, Cromos Mining and Crushing, LLC. in April, according to court documents filed by Longview police. Bogin said she deceived him about selling company equipment, funneled just over $100,000 from a company account to her own bank account, used a company bank card without authorization and forged nearly $40,000 of checks from his personal account.
According to the documents, Bogin showed police bank records indicating that, in Oct. 2011, Bredfield transferred the embezzled funds from a Cromos Mining account to a friend’s bank account. In interviews, the friend said Bredfield told her that she would be out of town and needed to pay a bill.
The friend told police she was surprised when a large sum of money showed up in her account. She returned most the money to Bredfield but was allowed to keep $2,000 for her trouble, according to documents.
Between March 2011 and December 2012, Bredfield allegedly forged 32 checks against Bogin’s account. Several of the checks listed Bredfield as the payee, according to documents. Some of the other checks were allegedly written to Bredfield’s house cleaner and a man who took Bredfield’s son to a motorcycle race.
In 2013, Bredfield allegedly made more than 100 transactions with a Cromos Mining bank card Bogin thought had been cancelled during bankruptcy proceedings. Bogin said he hadn’t been making payments on the bank card, but believes Bredfield made payments with an unauthorized business check.
A Longview woman has been accused of embezzling more than $100,000 and forging numerous checks from the bank accounts of her former business partner and their mining company.
Angeline Danielle Bredfield, 40, has been charged with one count of first-degree theft, one count of first-degree identity theft and 32 counts of forgery in Cowlitz County Superior Court, according to documents. County deputies arrested Bredfield Wednesday.
Bredfield’s business partner and alleged ex-boyfriend, Longview doctor Vladimir Bogin, reported embezzlement from the couple’s company, Cromos Mining and Crushing, LLC. in April, according to court documents filed by Longview police. Bogin said she deceived him about selling company equipment, funneled just over $100,000 from a company account to her own bank account, used a company bank card without authorization and forged nearly $40,000 of checks from his personal account.
According to the documents, Bogin showed police bank records indicating that, in Oct. 2011, Bredfield transferred the embezzled funds from a Cromos Mining account to a friend’s bank account. In interviews, the friend said Bredfield told her that she would be out of town and needed to pay a bill.
The friend told police she was surprised when a large sum of money showed up in her account. She returned most the money to Bredfield but was allowed to keep $2,000 for her trouble, according to documents.
Between March 2011 and December 2012, Bredfield allegedly forged 32 checks against Bogin’s account. Several of the checks listed Bredfield as the payee, according to documents. Some of the other checks were allegedly written to Bredfield’s house cleaner and a man who took Bredfield’s son to a motorcycle race.
In 2013, Bredfield allegedly made more than 100 transactions with a Cromos Mining bank card Bogin thought had been cancelled during bankruptcy proceedings. Bogin said he hadn’t been making payments on the bank card, but believes Bredfield made payments with an unauthorized business check.
Civil Suit Alleges Law Firm Partner In Georgia Embezzled $30 Million In Client Escrow Funds
From Atlanta Business Chronicle on 8/27/14:
...
Nathan Hardwick IV, the managing partner of MHS [Morris Hardwick Schneider] and the chairman of the board and CEO of LandCastle [LandCastle Title LLC], has resigned from the law firm and Mark Wittstadt has been tapped as the managing partner of MHS.
In a civil lawsuit filed in the Superior Court of Fulton County on Aug. 5, MHS and LandCastle contend Hardwick “systematically depleted the firm's (MHS) accounts, including MHS Trust Accounts and MHS Operating Accounts for his personal benefit.”
The lawsuit alleges in order to “fill the gaps created by Hardwick’s misappropriation of funds” from MHS’ accounts, he siphoned funds from the LandCastle Escrow Accounts and LandCastle Operating Accounts into MHS’ accounts.
In total, MHS and LandCastle estimate Hardwick wrongfully directed more than $30 million in funds.
The lawsuit claims in or around June of 2014, Hardwick caused or directed the alteration of a bank statement to mask a $1.1 million shortages in an LandCastle Escrow Account.
Further, it alleges he altered MHS’ and LandCastle Title’s internal accounting records maintained in SoftPro (a real estate escrow accounting and closing production system) so their escrows accounts would appear to reconcile. For example, “in November 2013 alone, there were five transfers of escrow fund from a LandCastle Escrow Account to a MHS Trust Account totaling $1.25 million.
Additionally, MHS banking records reflect Hardwick directed nearly $6.3 million to Divot Holdings LLC, which was controlled solely by Hardwick, nearly $1 million to pay providers of private jet services, nearly $645,000 for payment of losses Hardwick suffered in connection with failed property investments, and nearly $4 million in wire transfers to casinos.
Hardwick misappropriated funds from MHS and LandCastle to fund a portion of his $3 million luxury condo in The Residences at The St. Regis Atlanta in February 2013. After having drained MHS’ Operating Accounts, Hardwick continued to take regular disbursements, but caused or directed those disbursements to be made from MHS Trust Fund Accounts. MHS and LandCastle have identified disbursements made from HS Trust Accounts directly to Hardwick between January 2012 and July 2014 for nearly $390,000.
Hardwick’s lawyer, Ed Garland of Garland, Samuel & Loeb P.C., released a statement saying the claims made against Hardwick "are false."
“Nat became aware of a problem with the accounting earlier this summer and immediately alerted his partners and initiated a review by outside auditors,” Garland wrote. “... He would never knowingly or intentionally take money he was not entitled to or harm the firm or its clients in any way. The law firm was profitable, and Nat believed that all of the money he received was properly distributed to him as his share of the profits of the firm.”
Read the whole story here.
...
Nathan Hardwick IV, the managing partner of MHS [Morris Hardwick Schneider] and the chairman of the board and CEO of LandCastle [LandCastle Title LLC], has resigned from the law firm and Mark Wittstadt has been tapped as the managing partner of MHS.
In a civil lawsuit filed in the Superior Court of Fulton County on Aug. 5, MHS and LandCastle contend Hardwick “systematically depleted the firm's (MHS) accounts, including MHS Trust Accounts and MHS Operating Accounts for his personal benefit.”
The lawsuit alleges in order to “fill the gaps created by Hardwick’s misappropriation of funds” from MHS’ accounts, he siphoned funds from the LandCastle Escrow Accounts and LandCastle Operating Accounts into MHS’ accounts.
In total, MHS and LandCastle estimate Hardwick wrongfully directed more than $30 million in funds.
The lawsuit claims in or around June of 2014, Hardwick caused or directed the alteration of a bank statement to mask a $1.1 million shortages in an LandCastle Escrow Account.
Further, it alleges he altered MHS’ and LandCastle Title’s internal accounting records maintained in SoftPro (a real estate escrow accounting and closing production system) so their escrows accounts would appear to reconcile. For example, “in November 2013 alone, there were five transfers of escrow fund from a LandCastle Escrow Account to a MHS Trust Account totaling $1.25 million.
Additionally, MHS banking records reflect Hardwick directed nearly $6.3 million to Divot Holdings LLC, which was controlled solely by Hardwick, nearly $1 million to pay providers of private jet services, nearly $645,000 for payment of losses Hardwick suffered in connection with failed property investments, and nearly $4 million in wire transfers to casinos.
Hardwick misappropriated funds from MHS and LandCastle to fund a portion of his $3 million luxury condo in The Residences at The St. Regis Atlanta in February 2013. After having drained MHS’ Operating Accounts, Hardwick continued to take regular disbursements, but caused or directed those disbursements to be made from MHS Trust Fund Accounts. MHS and LandCastle have identified disbursements made from HS Trust Accounts directly to Hardwick between January 2012 and July 2014 for nearly $390,000.
Hardwick’s lawyer, Ed Garland of Garland, Samuel & Loeb P.C., released a statement saying the claims made against Hardwick "are false."
“Nat became aware of a problem with the accounting earlier this summer and immediately alerted his partners and initiated a review by outside auditors,” Garland wrote. “... He would never knowingly or intentionally take money he was not entitled to or harm the firm or its clients in any way. The law firm was profitable, and Nat believed that all of the money he received was properly distributed to him as his share of the profits of the firm.”
Read the whole story here.
Saturday, November 1, 2014
Tennessee Woman Sentenced To 40 Months In Prison For Embezzling $428K From School & Non-Profits
From WDEF News 12 on 10/8/2014:
A former Alcoa City School District employee was sentenced to 40 months in prison for embezzlement and ordered to pay more than $428,000 in restitution to the district and two nonprofits.
According to the U.S. attorney's office for the Eastern District of Tennessee and an audit by the state comptroller's office, Kathy Winters managed the school district's federal funds. Using fraudulent invoices, she diverted money into accounts for two nonprofits where she served as treasurer. She used the money to pay her mortgage; buy food, jewelry, clothing and iTunes songs; and invest in a local gym.
She also used the school district's credit cards for personal purchases and received reimbursement for 70 trips she did not take.
The Harriman resident pleaded guilty to embezzlement in June and was sentenced Tuesday.
A former Alcoa City School District employee was sentenced to 40 months in prison for embezzlement and ordered to pay more than $428,000 in restitution to the district and two nonprofits.
According to the U.S. attorney's office for the Eastern District of Tennessee and an audit by the state comptroller's office, Kathy Winters managed the school district's federal funds. Using fraudulent invoices, she diverted money into accounts for two nonprofits where she served as treasurer. She used the money to pay her mortgage; buy food, jewelry, clothing and iTunes songs; and invest in a local gym.
She also used the school district's credit cards for personal purchases and received reimbursement for 70 trips she did not take.
The Harriman resident pleaded guilty to embezzlement in June and was sentenced Tuesday.
California Woman Sentenced To 4 Years For Embezzling $685K From T-Shirt Company
From the Sierra Star on 10/28/2014:
Former bookkeeper sentenced to four years
Tashima pled guilty April 7, to grand theft embezzlement and felony identity theft after stealing $685,000 between 2007 and 2012
Sue Tashima, a former bookkeeper for Oakhurst T-shirt company Simply Smashing, Inc., was sentenced Oct. 27, to four years in the Fresno County Jail for embezzlement, and ordered to pay restitution to two victims totaling $485,000.
Fresno County Superior Court Judge Arlan Harrell also ordered Tashima to spend three years of supervised probation after her release from jail.
Tashima, formerly known as Sue Caldwell, turned herself in and pled guilty April 7, to two grand theft embezzlement charges and two felony identity theft charges after stealing $685,000 between 2007 and 2012 — $325,000 from Simply Smashing and an additional $360,000 from a Fresno real estate investment business, The CVI Group. She was found guilty by Judge Harrell on July 21. As part of a plea bargain, Tashima made partial restitution payments during the proceedings of $100,000 to each of the businesses.
Sentencing was delayed six months to allow her to finish her classes at Paul Mitchell's Beauty School in Fresno and be able to take her state cosmetology board exams.
Tim Fruehe and his wife, Barbara, are the owners of Simply Smashing.
According to Tim Fruehe, Tashima came to work for his company in 2006, after relocating to Oakhurst from Watsonville, as a part-time bookkeeper.
"We hired her based on her supposed spotless background, 20 years of bookkeeping experience, and her charming personality," Fruehe said. "Sue quickly earned our trust and appeared to be saving us money through her efficiency and skill. Everyone loved her. Like most employees at a small business, she became like family to us — you would never guess she was stealing thousands and thousands of dollars from us."
Fruehe said within a week of taking over the accounting department, Tashima took $6,500 for herself through an extra payroll check.
Fruehe said Tashima was stealing about $5,000 to $10,000 a month for about four years.
"From 2008 to 2010, we were blaming our losses to the recession at the time and never even considered to look at our trusted bookkeeper.She invited us to her wedding on July 4, 2010 — a wedding we now know was paid for with our money. She bragged about buying her husband a Rolex watch for a wedding gift and loved showing off her $20,000 wedding ring." "
Fruehe said by 2010, the company's finances were getting so bad he started liquidating personal assets such as two homes, and $150,000 from his retirement savings in order to keep Simply Smashing in business and his employees working.
"While we were selling our homes, and cashing out 401Ks and IRAs on her advice, she (Tashima) was very sympathetic to the troubles we were going through and told us she would do everything she could to help us, including cutting her hours back," Fruehe said.
According to Fruehe, additional financial problems were hindering the company due to Tashima, including a Xerox lease default resulting in a $400,000 judgment against Simply Smashing, default on credit lines, and more than $200,000 in supplier debt — all leading Fruehe to file Chapter 7 Bankruptcy in late 2011, and the short sale of two homes.
It was about that time, according to Fruehe, that the Fresno company discovered the loss of funds due to Tashima. It was in June of 2013, when Fruehe got a call from Fresno Police Department Financial Crimes Unit Detective Teri Terry.
"She (Terry) told me that while she was investigating a Fresno embezzlement case involving Tashima, she came across Simply Smashing canceled checks totaling about $70,000 from January through July 2010," Fruehe said.
Prior to sentencing, Tim Fruehe read an emotional victim impact statement to the judge, opening with "The first thing Susan stole in 2007 was our trust. The kind of trust that is normally only given to ones family. With our trust securely held in her possession she promptly stole her first check three weeks after taking control of the accounting department. From 2007 through 2012, Susan was fully aware of the company and its president's financial suffering - often sympathizing and offering encouragement with a big smile. Looking back, it is apparent that she wanted to destroy Simply Smashing and leave me, the president, in financial ruin, all for her own financial gain and personal enjoyment. She almost succeeded."
Fruehe said words cannot express the pain and suffering a victim goes through when experiencing the nightmare of losing everything achieved through a lifetime of hard work. "Since being caught in November of 2012, Sue has been free for over 20 months. Your honor, it is time for her to be locked up, for Susan to pay for her crimes and for justice to be served."
A similar second letter was read on behalf of Solley.
Prior to sentencing, Judge Harrell said he normally does not make comments about a defendant, "but in this case, after hearing the Fruehe's and Solley's impact statements I feel compelled to tell this one like it is — Ms. Tashima, you are nothing more than a criminal."
After the sentencing, Barbara Fruehe said hearing her husband speak his mind to the judge, the defendant, and her attorney, was worth the wait.
"There was no better sound than the click click of those hand cuffs after sentencing," Barbara said.
At the time of her arrest, Tim Fruehe said he was telling his story so other small businesses can be aware of what can happen to them once someone steals your trust.
"No matter how good you think your bookkeeper is, or how much you trust them, you better be routinely checking your bank statements," Fruehe said.
Former bookkeeper sentenced to four years
Tashima pled guilty April 7, to grand theft embezzlement and felony identity theft after stealing $685,000 between 2007 and 2012
Sue Tashima, a former bookkeeper for Oakhurst T-shirt company Simply Smashing, Inc., was sentenced Oct. 27, to four years in the Fresno County Jail for embezzlement, and ordered to pay restitution to two victims totaling $485,000.
Fresno County Superior Court Judge Arlan Harrell also ordered Tashima to spend three years of supervised probation after her release from jail.
Tashima, formerly known as Sue Caldwell, turned herself in and pled guilty April 7, to two grand theft embezzlement charges and two felony identity theft charges after stealing $685,000 between 2007 and 2012 — $325,000 from Simply Smashing and an additional $360,000 from a Fresno real estate investment business, The CVI Group. She was found guilty by Judge Harrell on July 21. As part of a plea bargain, Tashima made partial restitution payments during the proceedings of $100,000 to each of the businesses.
Sentencing was delayed six months to allow her to finish her classes at Paul Mitchell's Beauty School in Fresno and be able to take her state cosmetology board exams.
Tim Fruehe and his wife, Barbara, are the owners of Simply Smashing.
According to Tim Fruehe, Tashima came to work for his company in 2006, after relocating to Oakhurst from Watsonville, as a part-time bookkeeper.
"We hired her based on her supposed spotless background, 20 years of bookkeeping experience, and her charming personality," Fruehe said. "Sue quickly earned our trust and appeared to be saving us money through her efficiency and skill. Everyone loved her. Like most employees at a small business, she became like family to us — you would never guess she was stealing thousands and thousands of dollars from us."
Fruehe said within a week of taking over the accounting department, Tashima took $6,500 for herself through an extra payroll check.
Fruehe said Tashima was stealing about $5,000 to $10,000 a month for about four years.
"From 2008 to 2010, we were blaming our losses to the recession at the time and never even considered to look at our trusted bookkeeper.She invited us to her wedding on July 4, 2010 — a wedding we now know was paid for with our money. She bragged about buying her husband a Rolex watch for a wedding gift and loved showing off her $20,000 wedding ring." "
Fruehe said by 2010, the company's finances were getting so bad he started liquidating personal assets such as two homes, and $150,000 from his retirement savings in order to keep Simply Smashing in business and his employees working.
"While we were selling our homes, and cashing out 401Ks and IRAs on her advice, she (Tashima) was very sympathetic to the troubles we were going through and told us she would do everything she could to help us, including cutting her hours back," Fruehe said.
According to Fruehe, additional financial problems were hindering the company due to Tashima, including a Xerox lease default resulting in a $400,000 judgment against Simply Smashing, default on credit lines, and more than $200,000 in supplier debt — all leading Fruehe to file Chapter 7 Bankruptcy in late 2011, and the short sale of two homes.
It was about that time, according to Fruehe, that the Fresno company discovered the loss of funds due to Tashima. It was in June of 2013, when Fruehe got a call from Fresno Police Department Financial Crimes Unit Detective Teri Terry.
"She (Terry) told me that while she was investigating a Fresno embezzlement case involving Tashima, she came across Simply Smashing canceled checks totaling about $70,000 from January through July 2010," Fruehe said.
Prior to sentencing, Tim Fruehe read an emotional victim impact statement to the judge, opening with "The first thing Susan stole in 2007 was our trust. The kind of trust that is normally only given to ones family. With our trust securely held in her possession she promptly stole her first check three weeks after taking control of the accounting department. From 2007 through 2012, Susan was fully aware of the company and its president's financial suffering - often sympathizing and offering encouragement with a big smile. Looking back, it is apparent that she wanted to destroy Simply Smashing and leave me, the president, in financial ruin, all for her own financial gain and personal enjoyment. She almost succeeded."
Fruehe said words cannot express the pain and suffering a victim goes through when experiencing the nightmare of losing everything achieved through a lifetime of hard work. "Since being caught in November of 2012, Sue has been free for over 20 months. Your honor, it is time for her to be locked up, for Susan to pay for her crimes and for justice to be served."
A similar second letter was read on behalf of Solley.
Prior to sentencing, Judge Harrell said he normally does not make comments about a defendant, "but in this case, after hearing the Fruehe's and Solley's impact statements I feel compelled to tell this one like it is — Ms. Tashima, you are nothing more than a criminal."
After the sentencing, Barbara Fruehe said hearing her husband speak his mind to the judge, the defendant, and her attorney, was worth the wait.
"There was no better sound than the click click of those hand cuffs after sentencing," Barbara said.
At the time of her arrest, Tim Fruehe said he was telling his story so other small businesses can be aware of what can happen to them once someone steals your trust.
"No matter how good you think your bookkeeper is, or how much you trust them, you better be routinely checking your bank statements," Fruehe said.
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.
...
Friday, October 31, 2014
National Credit Union Administration Bans 3 In October For Egregious Embezzlements
From the Credit Union Times on 10/31/2014:
The NCUA issued prohibition orders to several individuals in October for embezzlement.
Reginald Clark, a former accountant at the $20.7 million Hoya Federal Credit Union in Washington, stole nearly $200,000 from the credit union, according to the NCUA.
He was sentenced to 63 months in prison and ordered to pay restitution in the amount of $219,286.41, the NCUA said. ...
Jennelle Curtis, a former accounting assistant at the $109 million Pinal County Federal Credit Union in Casa Grande, Ariz., pleaded guilty to two charges of embezzlement.
Curtis was sentenced to a one year in prison, five years of supervised release and ordered to pay $555,571 in restitution.
To avoid the time and costs associated with administrative litigation, Kendra Jill Moore, a former employee of the $258.5 million Partners 1st Federal Credit Union in Fort Wayne, Ind., consented to the issuance of an order of prohibition. ...
Read the whole story here.
The NCUA issued prohibition orders to several individuals in October for embezzlement.
Reginald Clark, a former accountant at the $20.7 million Hoya Federal Credit Union in Washington, stole nearly $200,000 from the credit union, according to the NCUA.
He was sentenced to 63 months in prison and ordered to pay restitution in the amount of $219,286.41, the NCUA said. ...
Jennelle Curtis, a former accounting assistant at the $109 million Pinal County Federal Credit Union in Casa Grande, Ariz., pleaded guilty to two charges of embezzlement.
Curtis was sentenced to a one year in prison, five years of supervised release and ordered to pay $555,571 in restitution.
To avoid the time and costs associated with administrative litigation, Kendra Jill Moore, a former employee of the $258.5 million Partners 1st Federal Credit Union in Fort Wayne, Ind., consented to the issuance of an order of prohibition. ...
Read the whole story here.
Couple Pleads Guilty To Embezzling $1 Million From Kentucky Monastery
From WDRB on 10/31/2014:
Couple accepts plea deal in connection with embezzlement from Abbey of Gethsemani
Police say the case of a million dollars stolen from a monastery might be one of the largest thefts ever in Nelson County, Kentucky. In Nelson Circuit Court on Friday, Carrie and John Hutchins took a plea deal and they will now have to pay big.
John Hutchins pleaded guilty to hundreds of charges for embezzling a million dollars from the Abbey of Gethsemani, dating back to 2008.
"It was all wire transfers. Money was transferred in the same bank from the account in the abbey to an account he had access to. From there it was spent by debit card, check cash," said Nelson County Detective Jason Allison.
He says the money was spent lavishly. "There was a lot of trips to the Bahamas, flew up to Chicago for a meal. A lot of that money I would say was just blown."
Hutchins will go to prison for 20 years, taking the maximum penalty. Prosecutors say his wife, Carrie was not as responsible as her husband, who was the accountant for the monastery. She will be on probation for two years. The couple is losing pretty much everything valuable that they own.
"The gun safe, six watches, exercise equipment, all appliances in the marital residence, two big screen televisions, the zero turn lawnmower," the judge kept listing numerous items.
They will also lose their house and two cars. Detective Allison says the cars were bought with the embezzled money.
The rest of the million dollars stolen--is supposed to be paid back through $600,000 of restitution.
When asked if the monastery will likely ever see that money, the prosecutor smirked. "Um, that's a good question," he replied.
Police already seized what was left in their bank account: $42,000.
"I feel like we come to a good resolution, obviously would've like to have more money that we could've got back from the abbey but we got what we could," said Allison.
The prosecutor says it is not clear how the embezzlement went on for so long without abbey officials noticing. He says the monastery was very trusting of Hutchins, and as a non-profit organization, is not audited like other places.
The couple will be formally sentenced in December.
Couple accepts plea deal in connection with embezzlement from Abbey of Gethsemani
Police say the case of a million dollars stolen from a monastery might be one of the largest thefts ever in Nelson County, Kentucky. In Nelson Circuit Court on Friday, Carrie and John Hutchins took a plea deal and they will now have to pay big.
John Hutchins pleaded guilty to hundreds of charges for embezzling a million dollars from the Abbey of Gethsemani, dating back to 2008.
"It was all wire transfers. Money was transferred in the same bank from the account in the abbey to an account he had access to. From there it was spent by debit card, check cash," said Nelson County Detective Jason Allison.
He says the money was spent lavishly. "There was a lot of trips to the Bahamas, flew up to Chicago for a meal. A lot of that money I would say was just blown."
Hutchins will go to prison for 20 years, taking the maximum penalty. Prosecutors say his wife, Carrie was not as responsible as her husband, who was the accountant for the monastery. She will be on probation for two years. The couple is losing pretty much everything valuable that they own.
"The gun safe, six watches, exercise equipment, all appliances in the marital residence, two big screen televisions, the zero turn lawnmower," the judge kept listing numerous items.
They will also lose their house and two cars. Detective Allison says the cars were bought with the embezzled money.
The rest of the million dollars stolen--is supposed to be paid back through $600,000 of restitution.
When asked if the monastery will likely ever see that money, the prosecutor smirked. "Um, that's a good question," he replied.
Police already seized what was left in their bank account: $42,000.
"I feel like we come to a good resolution, obviously would've like to have more money that we could've got back from the abbey but we got what we could," said Allison.
The prosecutor says it is not clear how the embezzlement went on for so long without abbey officials noticing. He says the monastery was very trusting of Hutchins, and as a non-profit organization, is not audited like other places.
The couple will be formally sentenced in December.
Indiana Woman Pleads Guilty In $130K Embezzlement Of Local PBS Station
From the Associated Press on 10/31/2014:
The former finance manager of a Public Broadcasting Service television station in Fort Wayne has admitted stealing money from the organization.
Fifty-eight-year-old Gail Waymire pleaded guilty Thursday to one count of wire fraud by using a false invoice to route nearly $9,000 from WFWA-TV to her personal bank account. The Journal Gazette and The News-Sentinel report federal prosecutors agreed to dismiss 19 other counts against Waymire and recommend she receive a sentence on the low end of the possible penalties.
A grand jury indicted Waymire last month on charges of embezzling of more than $130,000 from the station over a three-year period. Her sentencing hearing is scheduled for Feb. 4 ...
The former finance manager of a Public Broadcasting Service television station in Fort Wayne has admitted stealing money from the organization.
Fifty-eight-year-old Gail Waymire pleaded guilty Thursday to one count of wire fraud by using a false invoice to route nearly $9,000 from WFWA-TV to her personal bank account. The Journal Gazette and The News-Sentinel report federal prosecutors agreed to dismiss 19 other counts against Waymire and recommend she receive a sentence on the low end of the possible penalties.
A grand jury indicted Waymire last month on charges of embezzling of more than $130,000 from the station over a three-year period. Her sentencing hearing is scheduled for Feb. 4 ...
Thursday, October 30, 2014
North Carolina Woman Sentenced To 2 Years For Embezzling Nearly $840K From Bookkeeping Clients
From the News Herald on 10/30/2014:
STATESVILLE, N.C. – A Lenoir woman was sentenced to 24 months in federal prison Monday, according to a release from the office of U.S. Attorney Anne M. Tompkins.
Denise Swanson was convicted of tax evasion, the release said. She will serve three years under court supervision following her release from prison. She was ordered to pay $839,830 in restitution to client victims and $249,912 to the IRS, according to the release.
Swanson was the owner and operator of Bottom-line Accounting, a tax preparation and bookkeeping business, court records show. She performed tax preparation services for clients, which included making related tax payments on their behalf, the records show.
STATESVILLE, N.C. – A Lenoir woman was sentenced to 24 months in federal prison Monday, according to a release from the office of U.S. Attorney Anne M. Tompkins.
Denise Swanson was convicted of tax evasion, the release said. She will serve three years under court supervision following her release from prison. She was ordered to pay $839,830 in restitution to client victims and $249,912 to the IRS, according to the release.
Swanson was the owner and operator of Bottom-line Accounting, a tax preparation and bookkeeping business, court records show. She performed tax preparation services for clients, which included making related tax payments on their behalf, the records show.
Swanson received funds from clients intended to go toward tax obligations to the IRS and other state agencies, the release said. Instead of making payments, she embezzled the money and used it to pay for her daughter’s college tuition, renovations to her house, gambling, and to cover personal expenses, the release said.
Court records show she failed to report the embezzled income on her individual tax returns for tax years 2006 through 2011. Swanson pleaded guilty to tax evasion for 2010 in August 2013, the release said.
Swanson was allowed to remain free following the sentencing hearing. She will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility, according to the release.
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