From the Omaha World-Herald on 3/24/2015:
An Iowa woman who embezzled $100,000 from the Department of Housing and Urban Development is heading to federal prison.
Melissa Edwards, 41, of Sioux City was sentenced Monday to one year in federal prison for making false statements to HUD. A federal judge also ordered Edwards to pay $179,118 in restitution.
Edwards managed a South Sioux City apartment building that offered Section 8 housing subsidized by HUD. Over a two-year period Edwards embezzled $169,924 from the management company, including more than $100,000 of HUD funds.
Thursday, March 26, 2015
Tuesday, March 24, 2015
2 Former Army Personnel Sentenced For Embezzling $2.7 Million While Stationed in Saudi Arabia
From the DOJ on 3/20/2015:
NEWNAN, Ga. - Jasen Minter and Louis E. Nock have each been sentenced to four years, nine months in prison for stealing more than $2.7 million from a United States Government bank account while they were on active duty in the United States Army stationed in Riyadh, Saudi Arabia.
“This was an egregious abuse of trust by two former U.S. Army soldiers who had access to millions of dollars of government money,” said Acting U.S. Attorney John Horn. “Their conduct betrayed their trust and honor as servicemembers and took substantial funds away from the United States Military Training Mission in Saudi Arabia.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the sentencing of both former U.S. Army Captain Jasen Minter and Sgt. First Class Louis Nock will finally hold them accountable for their criminal actions in stealing over two million dollars in government monies, it remains to be seen if they will be able to repay the government in spite of the fact that, as part of their sentencing, they are ordered by the court to do so. While both Minter and Nock were stationed in Saudi Arabia, their purpose as Finance Officers was to support the war fighter through the U.S.
Military Training Mission. They, instead, literally sent boxes of U.S. cash back to the States for their own personal gain. This has been an extensive and protracted investigation initiated by the U.S. Army Criminal Investigative Division and the Department of Defense- Office of Inspector General. The FBI will continue to work with its military components in ensuring that U.S. funds designated for military use are used as intended and not diverted to personal bank accounts as was seen in this case.”
“Instead of serving their country honorably while stationed overseas in a sensitive assignment, these two U.S. Army finance officers betrayed it by abusing their positions of trust and embezzling more than $2.7 million in American taxpayer funds,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “This sentencing should serve as a constant reminder that DCIS and our law enforcement partners will relentlessly pursue corruption, fraud, and abuse within Department of Defense programs anywhere in the world, and bring violators to justice.”
“This sentencing is another great example of the work our special agents do on a daily basis,” said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “The defendants attempted to profit by compromising the readiness of our servicemembers during a time of war, but this joint investigation unraveled their scheme and now they are being held responsible for betraying the trust placed in them.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Minter and Nock served as the Finance Officer and Deputy Finance Officer, respectively, for the United States Military Training Mission in Riyadh, Saudi Arabia from 2006 to 2007. As part of their duties in the Finance Office, Minter and Nock had access to a U.S. government bank account that was held at the Saudi American Bank.
In June 2006, the defendants withdrew approximately $1.2 million in cash from the bank account and kept those funds for their own benefit. In August 2006, they made another withdrawal of more than $1.5 million in cash, and again kept the funds for their own use instead of returning them to the Finance Office. Before leaving Saudi Arabia, both defendants falsely affirmed in Finance Office records that there were no missing funds from the bank account. An audit conducted by the Department of Defense later revealed the theft of funds.
Jasen Minter, 44, of Fayetteville, Georgia, has been sentenced to four years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,216,617.97. Minter was convicted on these charges on November 21, 2014, after he pleaded guilty.
Louis E. Nock, 48, of Orlando, Florida, has been sentenced to four years, nine months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,216,617.97 to the United States Army. Nock was convicted of these charges on January 5, 2015, after he pleaded guilty.
NEWNAN, Ga. - Jasen Minter and Louis E. Nock have each been sentenced to four years, nine months in prison for stealing more than $2.7 million from a United States Government bank account while they were on active duty in the United States Army stationed in Riyadh, Saudi Arabia.
“This was an egregious abuse of trust by two former U.S. Army soldiers who had access to millions of dollars of government money,” said Acting U.S. Attorney John Horn. “Their conduct betrayed their trust and honor as servicemembers and took substantial funds away from the United States Military Training Mission in Saudi Arabia.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the sentencing of both former U.S. Army Captain Jasen Minter and Sgt. First Class Louis Nock will finally hold them accountable for their criminal actions in stealing over two million dollars in government monies, it remains to be seen if they will be able to repay the government in spite of the fact that, as part of their sentencing, they are ordered by the court to do so. While both Minter and Nock were stationed in Saudi Arabia, their purpose as Finance Officers was to support the war fighter through the U.S.
Military Training Mission. They, instead, literally sent boxes of U.S. cash back to the States for their own personal gain. This has been an extensive and protracted investigation initiated by the U.S. Army Criminal Investigative Division and the Department of Defense- Office of Inspector General. The FBI will continue to work with its military components in ensuring that U.S. funds designated for military use are used as intended and not diverted to personal bank accounts as was seen in this case.”
“Instead of serving their country honorably while stationed overseas in a sensitive assignment, these two U.S. Army finance officers betrayed it by abusing their positions of trust and embezzling more than $2.7 million in American taxpayer funds,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “This sentencing should serve as a constant reminder that DCIS and our law enforcement partners will relentlessly pursue corruption, fraud, and abuse within Department of Defense programs anywhere in the world, and bring violators to justice.”
“This sentencing is another great example of the work our special agents do on a daily basis,” said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “The defendants attempted to profit by compromising the readiness of our servicemembers during a time of war, but this joint investigation unraveled their scheme and now they are being held responsible for betraying the trust placed in them.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Minter and Nock served as the Finance Officer and Deputy Finance Officer, respectively, for the United States Military Training Mission in Riyadh, Saudi Arabia from 2006 to 2007. As part of their duties in the Finance Office, Minter and Nock had access to a U.S. government bank account that was held at the Saudi American Bank.
In June 2006, the defendants withdrew approximately $1.2 million in cash from the bank account and kept those funds for their own benefit. In August 2006, they made another withdrawal of more than $1.5 million in cash, and again kept the funds for their own use instead of returning them to the Finance Office. Before leaving Saudi Arabia, both defendants falsely affirmed in Finance Office records that there were no missing funds from the bank account. An audit conducted by the Department of Defense later revealed the theft of funds.
Jasen Minter, 44, of Fayetteville, Georgia, has been sentenced to four years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,216,617.97. Minter was convicted on these charges on November 21, 2014, after he pleaded guilty.
Louis E. Nock, 48, of Orlando, Florida, has been sentenced to four years, nine months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,216,617.97 to the United States Army. Nock was convicted of these charges on January 5, 2015, after he pleaded guilty.
Georgia Woman Accused Of Embezzling $2.5 Million From Hair Products Company
From WDEF 12 on 3/20/2015:
Prosecutors say a former employee of a metro Atlanta hair products company has been arraigned on nine counts of fraud related to theft.
Acting U.S. Attorney John Horn says Veria Fields of Atlanta appeared in court Thursday. Prosecutors say she stole more than $2.5 million from Bronner Bros. in Marietta from 2006 to 2010. She was indicted on March 4.
Prosecutors say 54-year-old Fields offered unauthorized discounts to customers in exchange for cash payments made directly to her. They say she used her position as an account manager to conceal the discounts and theft.
Prosecutors say a former employee of a metro Atlanta hair products company has been arraigned on nine counts of fraud related to theft.
Acting U.S. Attorney John Horn says Veria Fields of Atlanta appeared in court Thursday. Prosecutors say she stole more than $2.5 million from Bronner Bros. in Marietta from 2006 to 2010. She was indicted on March 4.
Prosecutors say 54-year-old Fields offered unauthorized discounts to customers in exchange for cash payments made directly to her. They say she used her position as an account manager to conceal the discounts and theft.
Former Little League Treasurer In New Jersey Pleads Guilty To Embezzling More Than $100K
From NBC10 on 3/21/2015:
The former treasurer of a New Jersey youth sports league has admitted embezzling more than $100,000.
Hunterdon County prosecutors say 43-year-old Kevin Lockrey, of Flemington, recently pleaded guilty to theft by deception. He faces a 364-day county jail term when he's sentenced June 26, and he also will have to make full restitution to the Flemington-Raritan Baseball League.
Lockrey was charged last year after discrepancies were found during an audit of the organization's finances.
Prosecutors did not say why Lockrey took the money or how he used it.
Monday, March 23, 2015
Virginia Woman Charged With Embezzling $469K From Local Architectural Firm
From The Virginian-Pilot on 3/21/2015:
A former employee of a prominent Virginia Beach architecture firm was arrested Thursday in connection with an embezzlement scheme that cost the company nearly a half-million dollars.
Katherine Albert-McNaughton, 36, of Virginia Beach was charged with one count of making a forged security and two counts of engaging in monetary transactions relating to criminally derived property.
According to the indictment, Albert-McNaughton worked for HBA Architecture & Interior Design. It alleges she forged the signature of one of her bosses on 83 checks between October 2011 and June 2014. The checks totaled $469,831.89 and ranged in value from $768 to $9,987.
The theft was revealed last year during an internal audit, according to an affidavit for a search warrant filed in Virginia Beach Circuit Court.
Albert-McNaughton was responsible for handling the firm's accounts, making bank deposits and distributing petty cash and charitable contributions, the affidavit said. She also was required to make monthly reports to the firm's financial manager regarding discrepancies between the company's bank statements and general ledger.
The affidavit said the financial manager found a check missing and asked Albert-McNaughton for the statements. Albert-McNaughton became nervous and started crying, and claimed she had just received a call about a family member who had been in an accident. She said she needed to go to the hospital and left, the affidavit said.
HBA Architecture is a familiar name in Hampton Roads. The firm worked on the new Kellam High School in Virginia Beach, as well as the new library in the Churchland section of Portsmouth and that city's new courthouse. It also has worked for TowneBank, Wachovia, the Portsmouth Naval Medical Center, the Virginia Port Authority and the Children's Museum of Virginia.
A former employee of a prominent Virginia Beach architecture firm was arrested Thursday in connection with an embezzlement scheme that cost the company nearly a half-million dollars.
Katherine Albert-McNaughton, 36, of Virginia Beach was charged with one count of making a forged security and two counts of engaging in monetary transactions relating to criminally derived property.
According to the indictment, Albert-McNaughton worked for HBA Architecture & Interior Design. It alleges she forged the signature of one of her bosses on 83 checks between October 2011 and June 2014. The checks totaled $469,831.89 and ranged in value from $768 to $9,987.
The theft was revealed last year during an internal audit, according to an affidavit for a search warrant filed in Virginia Beach Circuit Court.
Albert-McNaughton was responsible for handling the firm's accounts, making bank deposits and distributing petty cash and charitable contributions, the affidavit said. She also was required to make monthly reports to the firm's financial manager regarding discrepancies between the company's bank statements and general ledger.
The affidavit said the financial manager found a check missing and asked Albert-McNaughton for the statements. Albert-McNaughton became nervous and started crying, and claimed she had just received a call about a family member who had been in an accident. She said she needed to go to the hospital and left, the affidavit said.
HBA Architecture is a familiar name in Hampton Roads. The firm worked on the new Kellam High School in Virginia Beach, as well as the new library in the Churchland section of Portsmouth and that city's new courthouse. It also has worked for TowneBank, Wachovia, the Portsmouth Naval Medical Center, the Virginia Port Authority and the Children's Museum of Virginia.
Former Firefighter In North Carolina Pleads Guilty To Embezzling $120K; Was Previously Incarcerated For Killing His Grandparents
From Civitas Media on 3/20/2015:
After 40 months of incarceration in the Scotland County Detention Center, James Rupard came face-to-face with an assembly of his victims for the first time on Thursday as he pleaded guilty to 17 felonies.
Before Senior Resident Superior Court Judge Richard Brown, the 53-year-old Rupard issued a 15-minute statement to the dozen present members of the Stewartsville Volunteer Fire Department and Scotland County Firefighters’ Association.
His words expressed contrition for the seven years he spent — while holding various positions of authority in both organizations — creating secret bank accounts and transferring thousands of dollars between them, his personal accounts, the account for his insurance business, and yet another account under his ex-wife’s name.
“From a biblical standpoint, my actions were absolutely sins,” he said. “From a legal viewpoint, they were criminal. I lived with a false sense of comfort that, because I had no intention of stealing anything permanently, only using it and replacing it, that I was not sinning, that I was not breaking any laws or rules.”
But Rupard’s words rang false with each of his victims who cared to venture an opinion. William Skipper, current president of the firefighters’ association, requested on behalf of the association as a whole that Rupard receive the maximum allowable sentence.
Rupard pleaded guilty to six counts of embezzlement, five counts of obtaining property by false pretense, four counts of malfeasance by a corporate officer, and one count of embezzlement by an insurance agent, all class H felonies carrying a maximum 30 month sentence for each. In addition, he also entered a guilty plea to a forgery charge, a class I felony with a 15 month maximum sentence.
As part of Rupard’s plea bargain, additional charges were dismissed by the state.
Following the day-long proceedings, Rupard was ordered to serve eight to 18 months active sentence, followed by six months of house arrest and an extended probation period that will last as long as it takes him to pay restitutions totalling more than $120,000.
“He broke trust with many, many, many people in this community,” Skipper said. “James had everybody fooled that he could possibly fool. He is a master manipulator.”
The prosecutor, senior assistant District Attorney Joanna Shober, chronicled Rupard’s move to Scotland County in the 1990s and the process by which he ingratiated himself with the community, volunteering with the Stewartsville fire department and the firefighters’ association as well as the American Red Cross and Republican Party.
In 2009, when Rupard was initially charged with insurance fraud, Scotland County learned the shocking past of a man it had welcomed with open arms 10 years earlier.
For 15 years, Rupard served time after conviction for second-degree murder in the 1978 shooting deaths of his grandparents, Ruth and Lester Rupard, who raised him, in Banner Elk.
Rupard was released in 1994. According to the N.C. Department of Corrections, he was last incarcerated at McCain Hospital in Hoke County.
Rupard was also a licensed insurance agent and the owner of American Insurance Marketing, and the pastor of Sandhills Community Church. Ironically, Shober pointed out, Rupard sent about $2,600 of the misused funds to Campbell University for his divinity school tuition.
...
Read the whole exhaustive story here.
After 40 months of incarceration in the Scotland County Detention Center, James Rupard came face-to-face with an assembly of his victims for the first time on Thursday as he pleaded guilty to 17 felonies.
Before Senior Resident Superior Court Judge Richard Brown, the 53-year-old Rupard issued a 15-minute statement to the dozen present members of the Stewartsville Volunteer Fire Department and Scotland County Firefighters’ Association.
His words expressed contrition for the seven years he spent — while holding various positions of authority in both organizations — creating secret bank accounts and transferring thousands of dollars between them, his personal accounts, the account for his insurance business, and yet another account under his ex-wife’s name.
“From a biblical standpoint, my actions were absolutely sins,” he said. “From a legal viewpoint, they were criminal. I lived with a false sense of comfort that, because I had no intention of stealing anything permanently, only using it and replacing it, that I was not sinning, that I was not breaking any laws or rules.”
But Rupard’s words rang false with each of his victims who cared to venture an opinion. William Skipper, current president of the firefighters’ association, requested on behalf of the association as a whole that Rupard receive the maximum allowable sentence.
Rupard pleaded guilty to six counts of embezzlement, five counts of obtaining property by false pretense, four counts of malfeasance by a corporate officer, and one count of embezzlement by an insurance agent, all class H felonies carrying a maximum 30 month sentence for each. In addition, he also entered a guilty plea to a forgery charge, a class I felony with a 15 month maximum sentence.
As part of Rupard’s plea bargain, additional charges were dismissed by the state.
Following the day-long proceedings, Rupard was ordered to serve eight to 18 months active sentence, followed by six months of house arrest and an extended probation period that will last as long as it takes him to pay restitutions totalling more than $120,000.
“He broke trust with many, many, many people in this community,” Skipper said. “James had everybody fooled that he could possibly fool. He is a master manipulator.”
The prosecutor, senior assistant District Attorney Joanna Shober, chronicled Rupard’s move to Scotland County in the 1990s and the process by which he ingratiated himself with the community, volunteering with the Stewartsville fire department and the firefighters’ association as well as the American Red Cross and Republican Party.
In 2009, when Rupard was initially charged with insurance fraud, Scotland County learned the shocking past of a man it had welcomed with open arms 10 years earlier.
For 15 years, Rupard served time after conviction for second-degree murder in the 1978 shooting deaths of his grandparents, Ruth and Lester Rupard, who raised him, in Banner Elk.
Rupard was released in 1994. According to the N.C. Department of Corrections, he was last incarcerated at McCain Hospital in Hoke County.
Rupard was also a licensed insurance agent and the owner of American Insurance Marketing, and the pastor of Sandhills Community Church. Ironically, Shober pointed out, Rupard sent about $2,600 of the misused funds to Campbell University for his divinity school tuition.
...
Read the whole exhaustive story here.
Hawaii Woman Charged With Embezzling $500K+ From Non-Profit
From KITV on 3/19/2015:
Laura Pitolo, 37, was charged Wednesday with six felony theft counts for allegedly diverting more than $500,000 in state funds from Waianae Community Outreach for use by herself, family members and friends, Attorney General Doug Chin announced.
"The charges against Ms. Pitolo are the result of over seven months of investigation conducted by special agents for the Attorney General into the misuse of state funds at Waianae Community Outreach," said Deputy Attorney General Michael Kagami of the Criminal Justice Division. "The evidence uncovered indicates Ms. Pitolo diverted a substantial amount of state funds for personal use."
"Hawaii citizens trust that their hard-earned tax dollars will be used to make communities better and not help one person get rich," said Chin. "The amount allegedly stolen here is extremely serious."
Waianae Community Outreach receives funding from the state of Hawaii to serve homeless individuals at its Kealahou West Oahu shelter. Pitolo was the program director at the time the thefts occurred. She was charged with five counts of first degree theft, each punishable by up to 10 years in prison and a $25,000 fine, and one count of second degree theft, punishable by up to five years in prison and a $10,000 fine.
In 2013, WCO filed a civil lawsuit against Pitolo alleging she stole more than $760,000 from the nonprofit organization. Christy Ho, WCO's attorney, says the dollar amount discrepancy compared to the criminal case is because of evidence that the AG's office was able to gather.
"It's probably just a result of different records that they investigated," said Ho. "To me, in general, it's pretty close."
WCO recently asked for summary judgement regarding its civil lawsuit against Pitolo and is awaiting the results of that request.
"If she has any assets, you know we're definitely going to look into that," said Ho. "Any paychecks from anywhere, inheritances (and) any property. We'll try to see if there's anything to recover."
Ho said about 300 clients living at the homeless shelter didn't notice major changes because of Pitolo's alleged transgressions. That's because dedicated workers frequently took month-long pay lags to keep operations intact.
"The residents didn't feel any affect from it at all," said Ho. "So, they recovered quite nicely and kept on rolling, business as usual."
The Department of Human Services refused to say how much money is given to WCO every year, saying Hawaii law prohibits DHS from commenting on active investigations.
Laura Pitolo, 37, was charged Wednesday with six felony theft counts for allegedly diverting more than $500,000 in state funds from Waianae Community Outreach for use by herself, family members and friends, Attorney General Doug Chin announced.
"The charges against Ms. Pitolo are the result of over seven months of investigation conducted by special agents for the Attorney General into the misuse of state funds at Waianae Community Outreach," said Deputy Attorney General Michael Kagami of the Criminal Justice Division. "The evidence uncovered indicates Ms. Pitolo diverted a substantial amount of state funds for personal use."
"Hawaii citizens trust that their hard-earned tax dollars will be used to make communities better and not help one person get rich," said Chin. "The amount allegedly stolen here is extremely serious."
Waianae Community Outreach receives funding from the state of Hawaii to serve homeless individuals at its Kealahou West Oahu shelter. Pitolo was the program director at the time the thefts occurred. She was charged with five counts of first degree theft, each punishable by up to 10 years in prison and a $25,000 fine, and one count of second degree theft, punishable by up to five years in prison and a $10,000 fine.
In 2013, WCO filed a civil lawsuit against Pitolo alleging she stole more than $760,000 from the nonprofit organization. Christy Ho, WCO's attorney, says the dollar amount discrepancy compared to the criminal case is because of evidence that the AG's office was able to gather.
"It's probably just a result of different records that they investigated," said Ho. "To me, in general, it's pretty close."
WCO recently asked for summary judgement regarding its civil lawsuit against Pitolo and is awaiting the results of that request.
"If she has any assets, you know we're definitely going to look into that," said Ho. "Any paychecks from anywhere, inheritances (and) any property. We'll try to see if there's anything to recover."
Ho said about 300 clients living at the homeless shelter didn't notice major changes because of Pitolo's alleged transgressions. That's because dedicated workers frequently took month-long pay lags to keep operations intact.
"The residents didn't feel any affect from it at all," said Ho. "So, they recovered quite nicely and kept on rolling, business as usual."
The Department of Human Services refused to say how much money is given to WCO every year, saying Hawaii law prohibits DHS from commenting on active investigations.
Pennsylvania Man Pleads Guilty To Charges He Embezzled $209K From Boys/Girls Clubs
From the York Daily Record on 3/18/2015:
A Newberry Township man with financial authority over the Pennsylvania Council of Boys and Girls Clubs pleaded guilty to embezzling more than $200,000 from the organization over a period of years.
According to Pennsylvania State Police reports, between 2006 and his resignation in 2011, Thierry Pierre Malley, 62, "had exclusive control" over obtaining and expenditures of the council's funding.
Shortly before Malley's resignation, the council became "concerned and aware of the possibility of misappropriated funds," according to the criminal affidavit.
A forensic audit, completed in April 2012, revealed that almost $209,000 was missing from the council's account.
Cpl. James K. Adams Jr. , who investigated the thefts, reported that Malley also had a fictitious set of accounting ledgers that he used to cover up the embezzlement.
Adams said, when confronted with the evidence, Malley admitted to converting the council's money for his personal use. Adams noted that during the time the money was being funneled off, Malley, "on numerous occasions," was paying down his credit card balances.
Tuesday, before entering his guilty pleas in a negotiated agreement with the Dauphin County District Attorney's Office, Malley made a payment of $200,000 in restitution to the council, according to court documents.
According to Pennsylvania State Police reports, between 2006 and his resignation in 2011, Thierry Pierre Malley, 62, "had exclusive control" over obtaining and expenditures of the council's funding.
Shortly before Malley's resignation, the council became "concerned and aware of the possibility of misappropriated funds," according to the criminal affidavit.
A forensic audit, completed in April 2012, revealed that almost $209,000 was missing from the council's account.
Cpl. James K. Adams Jr. , who investigated the thefts, reported that Malley also had a fictitious set of accounting ledgers that he used to cover up the embezzlement.
Adams said, when confronted with the evidence, Malley admitted to converting the council's money for his personal use. Adams noted that during the time the money was being funneled off, Malley, "on numerous occasions," was paying down his credit card balances.
Tuesday, before entering his guilty pleas in a negotiated agreement with the Dauphin County District Attorney's Office, Malley made a payment of $200,000 in restitution to the council, according to court documents.
Georgia Woman Sentenced For Embezzling $225K From Local Aquarium
From The Associated Press on 3/19/2015:
Fulton County prosecutors say a former Georgia Aquarium employee has been sentenced to 20 years in an embezzlement scheme with four to serve in prison.
District Attorney's spokeswoman Yvette Jones said Thursday that 24-year-old Marina Davis pleaded guilty to racketeering charges and 11 counts of theft. Prosecutors say Davis stole roughly $225,000 from the aquarium during an 11-month timespan between 2012 and 2013.
Authorities say Davis was an accounting assistant and was responsible for processing credit card refunds to customers. Prosecutors say Davis fraudulently processed more than 100 refunds to more than a dozen debit cards that were either linked to her bank account or her roommate's bank accounts.
Prosecutors say the fraud was discovered after Davis quit her job and a manager who began processing refunds noticed the discrepancy.
Fulton County prosecutors say a former Georgia Aquarium employee has been sentenced to 20 years in an embezzlement scheme with four to serve in prison.
District Attorney's spokeswoman Yvette Jones said Thursday that 24-year-old Marina Davis pleaded guilty to racketeering charges and 11 counts of theft. Prosecutors say Davis stole roughly $225,000 from the aquarium during an 11-month timespan between 2012 and 2013.
Authorities say Davis was an accounting assistant and was responsible for processing credit card refunds to customers. Prosecutors say Davis fraudulently processed more than 100 refunds to more than a dozen debit cards that were either linked to her bank account or her roommate's bank accounts.
Prosecutors say the fraud was discovered after Davis quit her job and a manager who began processing refunds noticed the discrepancy.
Massachusetts Man Charged With Embezzling $1.1 Million From Real Estate Developer
From the Worcester Telegram & Gazette on 3/18/2015:
A trusted employee who worked for a quarter-century at one of the area's largest development companies is accused of embezzling more than $1 million by electronically diverting money to secret accounts.
Michael R. Lussier, 59, with a last known address of 13 Pond St., Paxton, was arrested in Rhode Island on a warrant on Feb. 18 and he was brought to Milford District Court where he was arraigned on two charges of larceny over $250.
Mr. Lussier was ordered held on $50,000 cash bail, which has since been posted. He had a pretrial hearing Monday, and the case was continued to April 10.
According to court documents, Mr. Lussier worked as controller/accounting manager for FRE Building Co. Inc. since November 1986. Mr. Lussier is alleged to have electronically diverted $1.1 million from the company to bank accounts for his personal use. Mr. Lussier's arrest last month capped a yearlong investigation that began on Feb. 24, 2014, and included the help of a private investigator hired by the company to track Mr. Lussier, who at first called in sick with the flu and then disappeared for several months, according to court documents.
Milford police were called to the company's offices at 120 Quarry Drive to meet with executives concerning weekly withdrawals Mr. Lussier allegedly had been making from the business bank account with Santander and depositing into a personal account at the same bank.
According to police records at Milford District Court, Mr. Lussier would make weekly transfers from the bank account from Quarry Square Realty Trust, an affiliate of FRE that owns and operates a shopping plaza in Milford, to a joint account that he had opened in his name and in the name of Madlyn Fafard, one of the principals of FRE. Mr. Lussier would make the transfers by writing a bank check made payable to Mrs. Fafard, and he would sign his name and endorse the check with a rubber stamp "Pay to The Order of Sovereign Bank . . .For Deposit Only Madlyn Fafard Escrow Michael R. Lussier."
Mrs. Fafard, however, told investigators she was unaware of the account and never authorized Mr. Lussier to open it; furthermore, she never accessed, deposited or withdrew funds from the account. Mrs. Fafard could not be reached for comment. A message was left for Paul J. Beattie, general counsel for Fafard Real Estate, but was not returned.
Attempts to reach Mr. Lussier by phone were unsuccessful, and a message was left for his Worcester attorney, James Gribouski, as well.
Court documents, however, outline alleged embezzlement that dates back to 2011.
From May 2011 through January 2014, Mr. Lussier is alleged to have electronically transferred $1.1 million from the joint account he created with Mrs. Fafard's name to his personal account. Mr. Lussier allegedly made three to six transfers to his personal account in a month. None of those transfers was authorized and "there is no business rationale why the Trust's funds were transferred to the Lussier Account," according to court documents.
It is also alleged Mr. Lussier hid the bank statements for the joint account he opened with Mrs. Fafard's name. When a statement was discovered, which noted transfers to his private account, a trustee of the company questioned Mr. Lussier. Mr. Lussier explained that his joint account was an account for Mrs. Fafard in Florida.
A day later, Mr. Lussier called in sick with the flu and later said he was being treated at UMass Memorial Medical Center. He never returned to work. Mrs. Fafard told police, according to court documents, she did not remember opening a bank account with Mr. Lussier, and she never signed any bank signature cards. She said she didn't oversee the company accounts because "I trusted him."
Mrs. Fafard stated she had "no idea or involvement with Mr. Lussier's actions," according to a report filed by Milford police Detective Carlos Sousa.
Police were unable to reach Mr. Lussier, and FRE hired a private investigator who tracked Mr. Lussier to Paxton, where he was living with a roommate, only to learn they no longer lived there. A warrant was issued for his arrest on Oct. 31 and he was arrested last month.
A trusted employee who worked for a quarter-century at one of the area's largest development companies is accused of embezzling more than $1 million by electronically diverting money to secret accounts.
Michael R. Lussier, 59, with a last known address of 13 Pond St., Paxton, was arrested in Rhode Island on a warrant on Feb. 18 and he was brought to Milford District Court where he was arraigned on two charges of larceny over $250.
Mr. Lussier was ordered held on $50,000 cash bail, which has since been posted. He had a pretrial hearing Monday, and the case was continued to April 10.
According to court documents, Mr. Lussier worked as controller/accounting manager for FRE Building Co. Inc. since November 1986. Mr. Lussier is alleged to have electronically diverted $1.1 million from the company to bank accounts for his personal use. Mr. Lussier's arrest last month capped a yearlong investigation that began on Feb. 24, 2014, and included the help of a private investigator hired by the company to track Mr. Lussier, who at first called in sick with the flu and then disappeared for several months, according to court documents.
Milford police were called to the company's offices at 120 Quarry Drive to meet with executives concerning weekly withdrawals Mr. Lussier allegedly had been making from the business bank account with Santander and depositing into a personal account at the same bank.
According to police records at Milford District Court, Mr. Lussier would make weekly transfers from the bank account from Quarry Square Realty Trust, an affiliate of FRE that owns and operates a shopping plaza in Milford, to a joint account that he had opened in his name and in the name of Madlyn Fafard, one of the principals of FRE. Mr. Lussier would make the transfers by writing a bank check made payable to Mrs. Fafard, and he would sign his name and endorse the check with a rubber stamp "Pay to The Order of Sovereign Bank . . .For Deposit Only Madlyn Fafard Escrow Michael R. Lussier."
Mrs. Fafard, however, told investigators she was unaware of the account and never authorized Mr. Lussier to open it; furthermore, she never accessed, deposited or withdrew funds from the account. Mrs. Fafard could not be reached for comment. A message was left for Paul J. Beattie, general counsel for Fafard Real Estate, but was not returned.
Attempts to reach Mr. Lussier by phone were unsuccessful, and a message was left for his Worcester attorney, James Gribouski, as well.
Court documents, however, outline alleged embezzlement that dates back to 2011.
From May 2011 through January 2014, Mr. Lussier is alleged to have electronically transferred $1.1 million from the joint account he created with Mrs. Fafard's name to his personal account. Mr. Lussier allegedly made three to six transfers to his personal account in a month. None of those transfers was authorized and "there is no business rationale why the Trust's funds were transferred to the Lussier Account," according to court documents.
It is also alleged Mr. Lussier hid the bank statements for the joint account he opened with Mrs. Fafard's name. When a statement was discovered, which noted transfers to his private account, a trustee of the company questioned Mr. Lussier. Mr. Lussier explained that his joint account was an account for Mrs. Fafard in Florida.
A day later, Mr. Lussier called in sick with the flu and later said he was being treated at UMass Memorial Medical Center. He never returned to work. Mrs. Fafard told police, according to court documents, she did not remember opening a bank account with Mr. Lussier, and she never signed any bank signature cards. She said she didn't oversee the company accounts because "I trusted him."
Mrs. Fafard stated she had "no idea or involvement with Mr. Lussier's actions," according to a report filed by Milford police Detective Carlos Sousa.
Police were unable to reach Mr. Lussier, and FRE hired a private investigator who tracked Mr. Lussier to Paxton, where he was living with a roommate, only to learn they no longer lived there. A warrant was issued for his arrest on Oct. 31 and he was arrested last month.
Former Director Of Missouri Domestic Violence Shelter Sentenced For Embezzling $115K
From the Associated Press on 3/19/2015:
A former director of a domestic violence shelter in her north-central Missouri hometown has been sentenced to two and a half years in prison for on-the-job embezzlement and fudging grant requests.
Fifty-one-year-old Deborah Wallace of Marshall also was ordered Wednesday to repay $115,219 to the Lighthouse Shelter and $268,468 to the Missouri Department of Public Safety.
Wallace pleaded guilty last June to charges of stealing government property and making false claims for reimbursement under a federal grant.
Prosecutors say that over a five-year period into 2013, Wallace used Lighthouse credit cards and bank account to pay personal expenses. She also admitted she submitted fraudulent monthly invoices in support of grant applications and spending.
Wallace was Lighthouse's executive director from early 1999 to April 2013.
A former director of a domestic violence shelter in her north-central Missouri hometown has been sentenced to two and a half years in prison for on-the-job embezzlement and fudging grant requests.
Fifty-one-year-old Deborah Wallace of Marshall also was ordered Wednesday to repay $115,219 to the Lighthouse Shelter and $268,468 to the Missouri Department of Public Safety.
Wallace pleaded guilty last June to charges of stealing government property and making false claims for reimbursement under a federal grant.
Prosecutors say that over a five-year period into 2013, Wallace used Lighthouse credit cards and bank account to pay personal expenses. She also admitted she submitted fraudulent monthly invoices in support of grant applications and spending.
Wallace was Lighthouse's executive director from early 1999 to April 2013.
Friday, March 20, 2015
Former Municial Treasurer In Illinois Charged With Embezzling More Than $1 Million Over 20 Year Period
From the Cook County State's Attorney's Office on 8/15/2013:
The former treasurer of a suburban township school district that manages finances for multiple school districts and agencies in the western suburbs has been charged with stealing more than $1 million dollars from the organization over a 20 year period, Cook County State’s Attorney Anita Alvarez announced today.
Robert Healy, 54, of LaGrange Highlands, served as the Treasurer of the Lyons Township Trustees of Schools for 24 years from 1988 through 2012. He has been charged with Theft of Governmental Property, a Class X felony and Official Misconduct, a Class 3 felony for allegedly bilking the organization of more than $1.5 million. If convicted, Healy faces up to 30 years in prison. Healy resigned his position in September 2012.
The Lyons Township School’s Treasurer’s Office, located in LaGrange Park, manages more than $280 million in public funds on behalf of 13 school districts and agencies in the western suburbs of Cook County, including Western Springs, LaGrange Park, Lyons, Summit/Argo, LaGrange Highlands, Willow Springs, LaGrange, Burr Ridge, and Justice. The districts serve over 21,000 school children.
According to prosecutors, the defendant was responsible for maintaining and managing all monies, books and papers belonging to the 13 schools districts and agencies under his control. This process required Healy to invest school funds and to manage payroll for the 13 school districts and agencies. In his capacity as treasurer, the defendant was entrusted with access to school district funds, and authorized to sign checks and make withdrawals from school district bank accounts for legitimate school business.
Beginning in late 1989 and continuing through April 2012, prosecutors allege that Healy added unauthorized compensation to his bi-monthly paychecks, or issued himself additional salary and benefits totaling $630,346.78. In addition, from February 2002 through April 2011, the defendant is alleged to have made 105 unauthorized wire transfers out of the Lyons Township Schools’ bank account to his personal bank account totaling $900,853.32. Healy also made an unauthorized wire transfer in July 2011 to purchase a luxury automobile in the amount of $7,547.51 toward the down payment on the vehicle’s lease.
According to court documents, the total of all unauthorized payments made by defendant, either by check or wire to the defendant or on his behalf was $1,538,747.61.
Healy was arrested on Wednesday and appeared for a bond hearing today at the George Leighton Criminal Courts Building in Chicago, where Cook County Judge James Brown set his bail at $100,000 and continued the case to September 4, 2013.
The former treasurer of a suburban township school district that manages finances for multiple school districts and agencies in the western suburbs has been charged with stealing more than $1 million dollars from the organization over a 20 year period, Cook County State’s Attorney Anita Alvarez announced today.
Robert Healy, 54, of LaGrange Highlands, served as the Treasurer of the Lyons Township Trustees of Schools for 24 years from 1988 through 2012. He has been charged with Theft of Governmental Property, a Class X felony and Official Misconduct, a Class 3 felony for allegedly bilking the organization of more than $1.5 million. If convicted, Healy faces up to 30 years in prison. Healy resigned his position in September 2012.
The Lyons Township School’s Treasurer’s Office, located in LaGrange Park, manages more than $280 million in public funds on behalf of 13 school districts and agencies in the western suburbs of Cook County, including Western Springs, LaGrange Park, Lyons, Summit/Argo, LaGrange Highlands, Willow Springs, LaGrange, Burr Ridge, and Justice. The districts serve over 21,000 school children.
According to prosecutors, the defendant was responsible for maintaining and managing all monies, books and papers belonging to the 13 schools districts and agencies under his control. This process required Healy to invest school funds and to manage payroll for the 13 school districts and agencies. In his capacity as treasurer, the defendant was entrusted with access to school district funds, and authorized to sign checks and make withdrawals from school district bank accounts for legitimate school business.
Beginning in late 1989 and continuing through April 2012, prosecutors allege that Healy added unauthorized compensation to his bi-monthly paychecks, or issued himself additional salary and benefits totaling $630,346.78. In addition, from February 2002 through April 2011, the defendant is alleged to have made 105 unauthorized wire transfers out of the Lyons Township Schools’ bank account to his personal bank account totaling $900,853.32. Healy also made an unauthorized wire transfer in July 2011 to purchase a luxury automobile in the amount of $7,547.51 toward the down payment on the vehicle’s lease.
According to court documents, the total of all unauthorized payments made by defendant, either by check or wire to the defendant or on his behalf was $1,538,747.61.
Healy was arrested on Wednesday and appeared for a bond hearing today at the George Leighton Criminal Courts Building in Chicago, where Cook County Judge James Brown set his bail at $100,000 and continued the case to September 4, 2013.
Former CEO Of Colorado Real Estate Concern Pleads Guilty To Embezzling More Than $400K From Association Members
From the Associated Press on 3/17/2015:
The Summit County district attorney says a woman has pleaded guilty to stealing more than $400,000 from a local real estate agents' association she had led for nearly two decades.
A statement Monday from District Attorney Bruce Brown's office added Sue Frank, the former chief executive officer of the Summit Association of Realtors, is scheduled to be sentenced May 19. She faces up to seven years in jail for felony theft.
Frank was arrested in December and accused of forging checks and making unauthorized transfers into her own account from the nonprofit association formed to support real estate agents with educational and other services.
The Summit County district attorney says a woman has pleaded guilty to stealing more than $400,000 from a local real estate agents' association she had led for nearly two decades.
A statement Monday from District Attorney Bruce Brown's office added Sue Frank, the former chief executive officer of the Summit Association of Realtors, is scheduled to be sentenced May 19. She faces up to seven years in jail for felony theft.
Frank was arrested in December and accused of forging checks and making unauthorized transfers into her own account from the nonprofit association formed to support real estate agents with educational and other services.
Former Public Housing Employee In Delaware Under Investigation In $201K Embezzlement Case
From the Associated Press on 3/17/2015:
The Wilmington Housing Authority says federal authorities are investigating allegations that a worker took more than $200,000 from the organization.
Housing Authority Board Chairman Herman Holloway Jr. said Monday that the U.S. Department of Housing and Urban Development is investigating the allegations.
Holloway says $200,987 in rent was taken from Crestview Apartments starting in 2012. The 149-unit building is one of 18 developments the agency operates.
The worker has not been charged but records show the person has left the position.
The Wilmington Housing Authority says federal authorities are investigating allegations that a worker took more than $200,000 from the organization.
Housing Authority Board Chairman Herman Holloway Jr. said Monday that the U.S. Department of Housing and Urban Development is investigating the allegations.
Holloway says $200,987 in rent was taken from Crestview Apartments starting in 2012. The 149-unit building is one of 18 developments the agency operates.
The worker has not been charged but records show the person has left the position.
Michigan Man To Be Sentenced After Pleading Guilty To Embezzling $800+K From Steel Company
From the Huron Daily Tribune on 3/17/2015:
Monday’s sentencing for a 34-year-old Akron area man who has pleaded guilty to embezzling from a Pigeon factory has been adjourned until next week.
Monday’s sentencing for a 34-year-old Akron area man who has pleaded guilty to embezzling from a Pigeon factory has been adjourned until next week.
It’s alleged Chad Letson embezzled more than $800,000 over roughly three years from Blue Diamond Steel in Pigeon, and he previously plead guilty to one count of embezzlement greater than $100,000, and one count of using a computer to commit a crime.
According to court officials, the Huron County Circuit Court criminal docket for Monday had to be rescheduled, as Judge Gerald M. Prill had a family funeral to attend.
Letson admitted he committed embezzlement during a February hearing in circuit court. He told Prill that when he was in a supervisory position at Blue Diamond, he used his computer to sell the company’s property via eBay and PayPal on multiple occasions between January 2011 and November 2014.
The crime of embezzlement is punishable by up to 20 years in prison and/or a $50,000 fine, or three times the amount embezzled, whichever is greater. The crime of using a computer to commit a crime is punishable by up to 10 years in prison.
Letson’s sentencing was adjourned until 1:30 p.m. March 23 in circuit court.
Former Title Insurance Agent in Florida Accused Of Embezzling $705K In Client Funds
From the Naples Daily News on 3/14/2015:
A former title insurance agent inEstero accused of siphoning more than $705,000 from her clients in 2010 faces theft and fraud charges.
Lana Kaye Dargai , of the 22000 block of Forest View Drive , was arrested March 7 , accused of stealing escrow funds put aside for the purchase and sale of real estate in Estero and Bonita Springs in June and July of 2010, according to the Florida Department of Financial Services .
The department'sDivision of Agent and Agency Services and Division of Insurance Fraud investigated the case. Dargai was doing business under the name Global Title Co. , which she owned.The investigation also found:
--Global Title used escrow money to purchase cashier's checks to pay its own monthly rent and its own property taxes.
--In one instance,$9,000 in escrow money was moved into a bank account for Dargai's father.
--At least eight times, fromAugust 2009 through June 2010 , funds from the company's escrow account held with Bank of Florida were transferred into Global Title's operating account, held with the same bank.
Dargai faces up to 15 years in prison for first degree grand theft and fraud charges, and her title agent license has been revoked. Dargai's case will be prosecuted by theState Attorney's Office in Fort Myers .
"These cases are thoroughly investigated, which takes time. Also, theState Attorney's Office had a forensic accountant going over all the facts and figures," said Ashley Carr , a spokeswoman for the Department of Financial Services . Dargai, she said, turned in her Global Title agency license in 2011.
She made off with money from at least five clients.Stewart Title Guaranty , the underwriter for the money, reported the fraud to the state.
"The clients weren't even aware of any issues asStewart Title covered the losses," Carr said. "The clients are not out any money. The victim is Stewart Title ."
Florida Community Bank was among the claimants that Stewart paid.
A former title insurance agent in
The department's
--Global Title used escrow money to purchase cashier's checks to pay its own monthly rent and its own property taxes.
--In one instance,
--At least eight times, from
Dargai faces up to 15 years in prison for first degree grand theft and fraud charges, and her title agent license has been revoked. Dargai's case will be prosecuted by the
"These cases are thoroughly investigated, which takes time. Also, the
She made off with money from at least five clients.
"The clients weren't even aware of any issues as
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