Washington State Woman Pleads Guilty & Gets Sentenced In $300K Embezzlement Case

Tina M. Hunsinger, 48, of Burlington, Washington, pleaded guilty Friday to embezzling at least $300,000 from Commercial Aircraft Interiors, where she had been employed as bookkeeper. Hunsinger was also sentenced to 18 months in prison and ordered to repay the $300,000. Hunsinger was originally charged with five counts of first-degree theft, but plead out to one count of first-degree theft. The embezzlement occurred between April 2003 and July 2006, according to authorities. Hunsinger reportedly spent the money on personal expenses, credit cards and to support her gambling activities at a local casino.

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Illinois Woman Pleads Guilty To $481K Embezzlement

Sandra L. Savala, 41, of Silvis, Illinois pled guilty yesterday to embezzling some $481,000 from Southeast National Bank in Moline, Illinois, where she had been employed in various positions including bank teller, loan processor and manager. Savala's embezzlement reportedly occurred between July 1996 and February 2004. Savala reportedly made false cash advance entries into bank books and records, transferring the funds to herself. Sentencing is scheduled for next January and faces up to 30 years in prison.

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Update (3/14/10): Sandra L. Savala, now 42, was sentenced to 4 years in prison for her embezzlement of $481,000 from Southeast National Bank. She must also pay full restitution and will have 5 years of supervised release after her jail time.

Former New York Supreme Court Justice Convicted Of Attempted Extortion & Bribery

Thomas J. Spargo, 66, of Albany, New York, a former New York State Supreme Court Justice, was convicted yesterday on charges of attempted extortion and soliciting a bribe. The conviction was the culmination of a three day trial in which it was demonstrated that on November 13, 2003, Spargo solicited a $10,000 payment from an attorney with cases pending before him in Ulster County, while Spargo was serving as a state supreme court justice. The evidence further showed that on December 19, 2003, Spargo directly told the attorney that if he did not pay the money, his cases would be in jeopardy. He faces up to 30 years in prison, plus fines, upon sentencing.

Read the story here, here and here.

Read the DOJ announcement here.

Read the original indictment here.

Democrat Fundraiser Arrested In $74 Million Bank Fraud Case

Hassan Nemazee, 59, of New York City and the Chairman and Chief Executive Officer of Nemazee Capital Corporation, was arrested Tuesday and charged with attempting to defraud Citibank out of $74 million in loans. The $74 million in question has reportedly been repaid. Nemazee has been a major fundraiser for the Democrat Party, including Obama and Clinton. Nemazee allegedly provided fraudulent documents to Citibank purporting to show that he owned millions in collateral, but such documents were shown to be "fraudulent and forged." According to reports, Nemazee served as national finance chairman for Hillary Clinton's presidential campaign in 2008, and later raised money for Obama after her primary defeat. He also was Senator John Kerry's finance chairman in New York for his 2004 bid for president. FBI agents detained Nemazee at Newark International Airport prior to his planned flight to Rome. Nemazee has been released but is under house arrest having been fitted for an electronic ankle bracelet to monitor his movements. Nemazee faces up to 30 years in prison if convicted. Meanwhile, Democrats who received donations, including Obama and Clinton, hastily moved to return the money. Research reveals that over the past fifteen years, Nemazee and his wife and family have given nearly $1 million in donations to the Democrats.

Read the story here, here and here.

Read the DOJ announcement here.

Update (7/19/10): Nemazee, now 60, was sentenced to 12 years in prison. He had pleaded guilty defrauding Citibank, Bank of America and HSBC of the nearly $300 million with fake collateral.

California Municipal Employee Arrested In $1.7 Million Embezzlement Case

Mary Ann Jones, 38, of Dos Palos, California, turned herself in yesterday after an arrest warrant was issued for her charging her with embezzling more than $1.7 million from the City of Los Banos where she had been employed as a utility "billing technician." According to prosecutors, Jones' scheme lasted from March 2005 to April 2009 whereby she allegedly took cash from daily deposits. Jones also allegedly tried to conceal her actions by making deposits with checks from other departments. A forensic audit revealed that more than $1.7 million is missing. Jones reportedly used the funds to purchase real estate, vehicles, luxury items, vacations and other items for her personal use.

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Update (5/24/13): The City of Los Banos reached an agreement whereby Moss, Levy, Hartzheim, LLP, the accounting firm that missed the fraud, would pay the city $750,000 in restitution.  In 2009, Jones pleaded no contest to six felonies, including five counts of embezzlement and one count of receiving stolen property.

Former Stanford Financial CFO Pleads Guilty In $7 Billion Ponzi Scheme Case

James M. Davis, 60, the former chief financial officer of Houston-based Stanford Financial Group, pleaded guilty yesterday to fraud and obstruction charges related to a $7 billion scheme to defraud investors. On June 18th, Davis was charged in a criminal Information with conspiracy to commit mail, wire and securities fraud; mail fraud; and conspiracy to obstruct an SEC investigation. The scheme involved the fraudulent misappropriation of some $7 billion in investor funds meant to purchase certificates of deposit. Robert Allen Stanford, chairman; Laura Pendergest-Holt, chief investment officer; Gilberto Lopez, chief accounting officer; Mark Kuhrt, global controller; and Leroy King, the administrator and chief executive officer, were indicted on June 18, 2009, on fraud and obstruction charges related to the scheme. Each are charged with conspiracy to commit mail, wire and securities fraud; wire fraud; mail fraud; and conspiracy to commit money laundering. In addition, Stanford, Pendergest-Holt and King are charged with conspiracy to obstruct an SEC investigation and obstruction of an SEC investigation.

Read FraudTalk's earlier post on the Stanford Financial fraud case here and here.

Read the DOJ announcement here.

South Carolina Man Senteced In $5.2 Million Embezzlement Case

William J. Trier, II, 57, of Williston, South Carolina, was sentenced yesterday to 63 months in prison for embezzling approximately $5,272,556 from Crane Company, where he had been employed as director of logistics in the shipping department. According to prosecutors, Trier, who was also convicted on money laundering charges, embezzled the funds between 1997 and October 2007. Trier's scheme involved creating 2 phony companies from which he created fraudulent invoices that he approved, had processed and then collected the proceeds for his own purposes.

Read the story here.

Read the DOJ announcement here.

USS Midway Museum Bookkeeper Pleads Guilty To Embezzling $111K

Veronica Gonzalez Monay, 35, of Eastlake, California, pleaded guilty yesterday to embezzling some $111,000 from the USS Midway Museum, where she had been employed as an accounting manager. According to prosecutors, Monay intercepted cash receipts which she kept for her own benefit. Monay was a three year employee of the museum, according to reports. She faces up to 4 years in prison, plus restitution. Monay was convicted of a similar crime in 1997, but it was expunged in 2004, according to reports.

Read the story here, here and here.

Former New York Bank Manager Pleads Guilty To $700K Embezzlement

Milagros Rodriguez, 40, of Garnerville, New York, pleaded gulity to embezzling some $700,000 from Sound Federal Savings and Loan Association, and then at Hudson City Savings Bank after it acquired Sound Federal, for whom she had been employed as a teller and later as bank manager. Rodriguez had been employed by the banks for 7 years and surrendered last April after she was charged. Her plea was to one count of embezzling bank funds and he faces up to 30 years in prison, plus fines and restitution. According to prosecutors, Rodriguez' scheme lasted from approximately April 2002 through March 2009, wherein she stole the funds from client accounts.

Read the story here.

Read the DOJ announcement here.

Update (3/23/10): Milagros Rodriguez was sentenced to 33 months in prison for her embezzlement.

Iowa School Administrator Charged With Embezzling As Much As $250K

Jamie Ann May, 42, of Cedar Rapids, Iowa, was charged with embezzling as much as $250,000 from the Cedar Rapids Community School District for which she has been employed as a secretary in the accounting department. May has been arrested on suspicion of "first degree theft" following an internal investigation conducted by the school system. The thefts are believed to have occurred between 2008 and 2009. May's responsibilities reportedly included the handling of cash receipts.

Read the story here, here and here.

Update (4/2/10): May reportedly died last November from heart problems following a battle with breast cancer. The prosecutor's office dropped the charges against May after her death. However, the total amount she embezzled was nearly $600,000, according to investigators. The thefts commenced as early as 2002 and continued until the time of her arrest.

Read the story and watch the video here.

Update (4/11/10): May's embezzlement is believed to be $587,784 over a 7 year period between 2002 and 2009.

Read a nice article profiling the case here.

Nebraska Woman Sentenced In $118K Embezzlement Case

Bonnie F. Kleewein, 44, of North Platte, Nebraska, was sentenced to 6 months in jail and ordered to pay full restitution for embezzling some $118,000 from her employer, Dr. David Zalewski, for whom she had been employed as a receptionist. According to prosecutors, Kleewein's scheme lasted for two years between 2005 and 2007 wherein she took cash from patients but marked the payments as credit-card transactions. She also reportedly altered checks Dr. Zalewski wrote and used them for her own benefit. In a separate matter, Kleewein was accused of stealing money from her invalid mother's bank account, writing checks from it for her own benefit.

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California Broker Pleads Guilty To $1.4 Million Embezzlement Scheme

Kirtikumar Menon, 41, of Mill Valley, California, pleaded guilty Monday to 8 felony counts related to the embezzlement of nearly $1.4 million from six clients through a series of complex real estate and financial deals made through his real estate company, Argentum Real Estate and Mortgage Inc. She charged include embezzlement from elders, forgery, preparing false documentary evidence and writing a check against insufficient funds. Menon faces up to 8 years in jail upon sentencing which is scheduled for September 23rd.

Read the story here and here.

South Dakota Woman Pleads Not Guilty In Alleged $100K Embezzlement From Fire Department

Jennifer Fox, 44, of Rapid City, South Dakota, has plead not guilty to charges she embezzled more than $100,000 from the Hill City Volunteer Fire Department and Ambulance Service where she had been employed. The embezzlement reportedly occurred between January 2005 and February 2008. Fox faces up to 15 years in prison, plus restitution and fines.

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South Carolina Woman Sentenced In $400K Embezzlement Case

Chandra Brooks Spigner, 44, of Orangeburg, South Carolina, was sentenced to 37 months in prison yesterday for embezzling nearly $400,000 from the St. Matthews branch of CPM Federal Credit Union where she had been employed. According to investigators, Spigner's scheme lasted from August 2002 until June 2004 when she was fired after it was revealed that she stole $398,838.47 by creating fictitious loans and then withdrawing the funds. Spigner attempted to conceal her actions by making payments on some of the fraudulent loans and by manipulating the bank's books and records, according to reports.

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Former Connecticut Non-Profit Director Sentenced In $150K Embezzlement Case

Jonathan D. Holden, 33, now of Hopkinton, Massachusetts, has been sentenced to six months in prison for embezzling some $150,000 from the Americorps program in Meriden, Connecticut, where he had served as a director. According to prosecutors, Holden, who previously resided in Middletown, Connecticut, issued paychecks to other individuals which he then cashed for his own benefit. The total amount stolen is believed to be $152,502. He was also ordered to pay full restitution and back taxes.

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Indiana Lawyer Commits Suicide On Eve Of Trial For Embezzling Client Funds

William G. Crabtree II, 46, an attorney residing in Dyer, Indiana, with an office in Schererville, was found dead in his home yesterday, apparently a suicide, on the day he was to stand trial for embezzling some $2.2 million from his clients. Prosecutors allege Crabtree stole the money from his clients between 2006 and 2008 by setting up a series of forged checks, phony receipts and bank transfers between his law firm and a title company he owned. The death is still under investigation although it has been ruled not a homicide.

Read FraudTalk's original post on this story here.

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