Former Oregon Executives Plead Guilty To Money Laundering Charges

Bryant Edwin Behrmann, 63, and Larry “Buck” E. Hunter, 62, both former executives of Global Online Direct, Inc., a company they operated out of La Grande, Oregon, pleaded guilty earlier this month to money laundering charges in connection with a scheme to defraud "thousands" of investors in the company. According to the complaint, "From 2005 through 2007, defendants marketed Global as a company that purchased distressed inventory and then purportedly resold that inventory for profits through flea markets, street sales, retail storefronts, and internet auctions. Global’s website falsely promised investors that 'each dollar loaned to Global Online Depository is SECURED by tangible product inventories stored in our own warehouses.' Global’s website also promised investors referral fees and annual returns that could exceed 1,500%; however, according to the criminal information, those returns were fabricated by defendants." Prosecutors allege that Behrmann and Hunter took in over $40 million from investors with the scheme while only buying $3 million worth in assets during the course of the company's existence. More than 8,000 investors across North America were bilked, according to reports.

Read the story here and here.

Read the DOJ announcement here.

Read the original SEC litigation release here.

Former Michigan Comptroller Charged In $300K Embezzlement

Debra Lee Oselett, 51, of Lake Orion, Michigan, was charged with embezzling more than $300,000 from North American Dismantling Company in Elba Township, Michigan, where she had been employed as company comptroller. According to reports, the company discovered that Oselett had a separate company credit card issued to her in her maiden name, but there were no invoices or records for it. She is believed to have used the credit card for personal expenses, had the company pay for it and then shredded the bills. A company audit then identified a total of $330,610 in funds Oselett allegedly stole. Prosecutors allege that the thefts occurred over a four year period.

Read the story here.

Virginia Bookkeeper Pleads Guilty To Embezzling $200K From Construction Firm

Sandra Lee Denis, 51, of Mechanicsville, Virginia, pleaded guilty to embezzling some $200,000 from Waco, Inc., a Henrico County construction company where she had been employed as the manager of accounts payable. According to prosecutors, Denis approved credit card payments for personal items and personal vendors. She had been employed by the company for 22 years and was considered beyond reproach. The embezzlement had been ongoing for at least five years, according to reports.

Read the story here.

Update: Former Manager of DC Office of Tax & Revenue Sentenced To 17.5 Years For $50 Million Embezzlement Scam

Harriette Monica Walters, 52, of Washington, DC and the former manager within the District of Columbia Office of Tax and Revenue, was sentenced today to 17 1/2 years in prison for orchestrating the fleecing of some $50 million from the agency that involved a conspiracy of friends and family members. She has also been ordered to pay restitution and back taxes. Ten other co-conspirators, along with Walters, have already pleaded guilty and have now been sentenced. Her scheme lasted nearly 18 years.

Read FraudTalk's earlier posts on this story here, here, here and here.

Read the story here and here.

Update: Former Wisconsin Municipal Treasurer Sentenced For Embezzlement

Kim B. Simmelink, 52, of Sheboygan Falls, Wisconsin and the former treasurer for the Village of Oostburg, Wisconsin, is scheduled to be sentenced today to up to nine years in prison on two counts each of felony forgery and felony theft. He has already been ordered to pay restitution of $112,000. According to prosecutors, Simmelink forged signatures and falsified records to cover the thefts, which occurred over a six-month period in late 2005 and early 2006. Simmelink had been employed as the Oostburg's bookkeeper beginning 1987 until 2006.

Read FraudTalk's original post on this case here.

Read the story here.

California Condo Exec Sentenced In $530K Embezzlement Case

Peter G. Kontos, 36, of Newport Beach, California, was sentenced to 2 years in prison for embezzling some $530,000 from condominium members of the Villa Point Condominium Association where he had served as president. Kontos pleaded guilty last December to several criminal charges including grand theft and money laundering. According to prosecutors, commencing in 2003, Kontos forged the signature of the Association treasurer on checks issued to various condominium contractors, who then gave back most of the money to Kontos. Separately, Kontos was accused of shining a laser beam into the cockpits of helicopters on at least 2 occasions in 2006. When the authorities raided his home, they found $135,000 in cash, cocaine and a green-light laser. Kontos has reportedly paid $337,000 in restitution to date.

Read the story here and here.

Tennessee Treasurer Charged With Embezzling $680K From Church & Cemetary

Barry C. Cain, 51, of Knox County, Tennessee, has been arrested and charged with bilking the Gallaher Memorial Baptist Church and the Edgewood Cemetery out of nearly $680,000 where he had served as treasurer for each. In the case of the cemetery, according to prosecutors, Cain had people write checks to him directly to purchase plots. The checks totalled nearly $600,000. In the case of the church, Cain simply wrote checks to himself totalling nearly $80,000.

Read the story here, here and here.

Richard Scrushy, Former HealthSouth Exec, Ordered To Pay $2.9 Billion

Richard Marin Scrushy, 56, currently serving a 7 year sentence for bribery, was ordered last week by an Alabama court to pay $2.88 billion to investors of Birmingham, Alabama-based HealthSouth Corporation, the rehabilitation company he ran as Chairman & CEO. Scrushy and the company was the subject of a massive accounting fraud investigation. In the order issued Thursday, the Judge stated that Scrushy "knew of and participated in" the faked reports filed with regulators from 1996 to 2002.

Read the story here and here.

Detroit Councilwoman, Wife Of Rep John Conyers, Pleads Guilty In Bribery/Conspiracy Case

Monica Ann Conyers, 44, of Detroit, a former city councilwoman and the wife of US Congressman John Conyers (D-MI), pleaded guilty to bribery and conspiracy charges Friday. Monica Conyers' guilty plea to one count of conspiracy to commit bribery culminated a year-long investigation into a pay to play scheme involving a $1.2 billion sludge disposal contract with the City of Detroit. According to prosecutors, Conyers admitted to taking at least $6,000 from Detroit businessman Rayford Jackson, an executive of Synagro Technologies Inc., to change her vote in favor of a $1.2-billion sludge disposal contract in 2007.

Read the story here, here and here.

Read the criminal Information here.

Update: Vermont Man Sentenced To 45 Days For Embezzling Nearly $100K

Karl W. Austin, 35, of Pownal, Vermont, was sentenced to only 45 days in prison for embezzling nearly $100,000 from NSK Steering Systems America where he had been employed as a payroll specialist from 2005 until September 2008. Austin pleaded guilty to two felony counts of embezzlement this past march. According to prosecutors, Austin basically issued payroll checks to himself totalling some $95,000. He could have been sentenced to as much as 20 years. Austin was actually sentenced to two 2-4 year sentences suspended except for the 45 days.

Read FraudTalk's original post on this story here.

Read the story here.

Madoff Sentenced To 150 Years

Bernard L. Madoff, 71 of Manhattan, New York, was sentenced earlier today to 150 years in federal prison for his role in defrauding investors out of as much as $65 billion in the largest ponzi scheme in history. Restitution has not yet been set. U.S. District Court Judge Denny Chin imposed the maximum sentence under federal sentencing guidelines. Madoff's attorneys, who claimed investor losses were only about $13 billion, had argued unsuccessfully for a much more lenient 12 year sentence. The packed courtroom broke out in applause when the sentence was issued. Judge Chin is quoted as saying, "Here the message must be sent that Mr. Madoff's crimes were extraordinarily evil." Madoff briefly faced and addressed the courtroom, which included many of his victims and is quoted as saying, "I'm sorry; I know that doesn't help you."

Read the story here, here and here.

What goes around, comes around...

Madoff Sentencing Tomorrow

Bernard L. Madoff is due to be sentenced tomorrow in the US District Court for the Southern District of New York for defrauding investors out of some $50 billion. The courtroom is expected to be jam packed. Prosecutors have asked for a sentence of 150 years - effectively life in prison. U.S. District Judge Denny Chin entered a preliminary order Friday, ruling that Madoff must give up his interests in all property, including real estate, investments, cars and boats, amounting to $171 billion.

Read the story here.

NY Investment Advisor Pleads Guilty To Running $30 Million Ponzi Scheme

Edward T. Stein, 59, of Manhattan, New York, pleaded guilty to a five-count felony Information charging him for bilking his clients in a $55 million Ponzi scheme. Stein is the head of Roslyn, New York-based Edward T. Stein Associates Ltd. Stein admitted that between 1998 and 2009, he fraudulently solicited investors to purchase interests in several funds and partnerships he controlled by falsely assuring them that he would make investments on their behalf with the money they provided. Instead, he used the funds for his own purposes and to pay earlier investors. Stein faces 15- 20 years in prison. The SEC took action last April and froze Stein's funds.

Read the story here and here.

Read the DOJ announcement here.

Read the SEC's announcement here.

Former Michigan Auto Parts Exec Charged In Nearly $400K Embezzlement Scheme

Donald G. Johnston, 46, of Lenawee County, Michigan was charged Friday with embezzling some $390,000 from Kecy Products Inc. of Hudson, Michigan. Specifically, Johnston was charged with 22 felony counts of embezzlement and criminal use of a computer. Kecy Products has also been sued in a civil case for allegedly defaulting on loans totaling $8.7 million. The specific nature of Johnston's embezzlement has not been revealed. Johnston faces up to 20 years in prison.

Read the story here and here.

Maryland Woman Sentenced For Embezzling $150+K From Bank

Donna L. Gatewood, 43, of Baltimore, Maryland, was sentenced earlier this month to 15 months in prison for embezzling more than $150,000 from an unnamed bank she had been employed by as an accounting clerk . Gatewood was also ordered to pay $154,521.74 in restitution. According to prosecutors, "In or before March of 2006, Gatewood discovered that it was possible for her to make deposits into her own personal checking account at the bank from the suspense accounts. Gatewood began taking monies from the bank’s suspense accounts by transferring funds from those accounts into her checking account, using different teller computers, after the tellers had already logged into the system. Gatewood used the funds to pay for personal items and expenses." Independent research by Marquet International reveals that Gatewood was employed by the Fairmont Federal Savings Bank in Baltimore.

Read the story here.

Read the DOJ announcement here.

Missouri Woman Pleads Guilty To Defrauding Employer Out Of $440+K

Lorraine Jeanette Hess, 51, of Lake Ozark, Missouri pleaded guilty earlier this month to charges she defrauded her employer, SSL Enterprises, out of more than $440,000. Hess, who had served as the company bookkeeper, admitted to having made unauthorized wire transfers and issued checks to her own accounts. Specifically, Hess pleaded guilty to charges of bank fraud and money laundering According to prosecutors, Hess' fraud occurred between May 2006 and November 2007. Hess faces up to 40 years in prison, plus restitution and fines.

Read the story here and here.

Read the DOJ announcement here.

Update On Dane Cook Embezzlement Case: Sister-In-Law Arrested

Erika McCauley, 37, of Wilmington, Massachusetts and the wife of Darryl James McCauley, 44, also of Wilmington, who has been indicted for allegedly embezzling more than $3 million from their famous comedian half-brother/in-law, Dane Cook. Darryl McCauley (pictured here) had been hired by Cook to serve as his manager but was replaced last year when financial irregularities came to light. Erika McCauley has been arrested and charged with aiding and abetting her husband in the scheme. She pleaded not guilty today in a Massachusetts courtroom on counts of larceny by scheme and receiving/concealing stolen property and was ordered held on $1 million bail.

Read FraudTalk's earlier posts on this story here and here.

Read the story here.

Update (10/13/10): Darryl McCauley pleaded guilty today to 27 counts of larceny, three counts of forgery, and at least one charge of embezzlement by a fiduciary and was sentenced to up to 6 years in state prison with another 10 years of probation. The amount McCauley is now suspected of embezzling from his half brother, Dane Cook, is $11 million over a four year period between 2004 and 2008.

New Jersey Banker Found Guilty Of Defrauding Customers

Carlos Pinho, 49, of Clark, New Jersey, pleaded guilty last week to stealing some $2.5 million from customers of two banks he worked for in a fraudulent certificate of deposit scheme. According to prosecutors, Pinho's scheme spanned nearly 8 years from 2001 to 2009. Specifically, Pinho pleaded guilty to a one-count Information charging him with mail fraud. According to the Information, Pinho convinced customers of the two banks, identified only as “P.B.A.” and “C.B.," that he could get help them invest in CDs that had higher interest rates than the market rate. Pinho admitted that he used some of the funds for personal uses while paying earlier investors a return.

Read the story here and here.

Read teh DOJ announcement here.

Update: Columbia University Embezzler Sentenced

John Bzdil III, 35, of Allentown, Pennsylvania, was sentenced to 15 months in prison for bilking Columbia University's Neurological Institute out of some $180,000, where he had been employed as the manager of the pediatric neuroscience department. According to prosecutors, Bzdil approved payments for medical studies that were never completed and pocketed the proceeds which he used for personal expenses, including his wedding at the Skytop Lodge. Charges against Bzdil's estranged wife, Heather Brooke Rinehart, 29, were dropped.

Read FraudTalk's earlier posts on this story here and here.

Read the story here and here.

California Man Guilty In $516K Embezzlement

Michael T. Bush, 59, of Oxnard, California, was found guilty of embezzling $516,000 from Big Brand Tire Co., for whom he had been employed as controller. Bush was also found guilty of failing to pay taxes on the ill-gotten gains. Specifically, the Ventura County jury found Bush guilty on one count of corporate embezzlement, two counts of grand theft, one count of misdemeanor petty theft, four counts of falsifying tax returns and one count of tax evasion. According to prosecutors, Bush, who had been employed by the company for 23 years, embezzled over the course of 9 years, from 1997 to 2006. He reportedly spent the money on a lavish lifestyle, including trips to the Philippines where his wife is from. Bush is scheduled to be sentenced on July 30 and faces up to 14 years in prison, plus restitution and fines.

Read the story here and here.

Minnesota Woman Charged In $220K Embezzlement Scheme

Kuntee Singramdoo, 49, of Lakeville, Minnesota, has been charged with embezzling some $220,000 from clients of Walsh Title and Real Estate Services, Inc., where she had been employed. According to prosecutors, Singramdoo caused at least 184 checks to be issued at real estate closings to 24 different creditors to whom she or her family owed money. The scam reportedly occurred between February 2004 and June 2007. Specifically, she was charged with five felony counts of theft and three felony counts of theft by swindle.

Read the story here, here and here.

Read the State of Minnesota announcement here.

Update (1/7/11): Singramdoo, now 50, was sentenced to 39 months in prison.

Former Texas Non-Profit Employee Sentenced In $850K Fraud Scheme

John Phillip Martin, 50, of Austin, Texas, was sentenced to 40 months in prison and ordered to pay $850,000 in restitution for using his position at the Austin branch of the American Cancer Society to defraud the charity in a scheme wherein he would purchase high-end cell phones using its Sprint account and resell them on the Internet. Martin pleaded guilty in April to three counts of wire fraud in the scheme that commenced in or about 2005 and was discovered after his position was eliminated in 2008. Martin reportedly circumvented the charity's controls by altering copies of legitimate Sprint invoices by copying and pasting fake amounts of money for the phones, including BlackBerrys, Palm Treos and Samsung Instincts. Martin was employed by the charity from 1991 to 2008.

Read the story here and here.

Read the DOJ announcement here.

Former Pennsylvania Hospital Worker Accused Of Embezzling As Much As $400K

Ellen C. Pocratsky, 53, of Uniontown, Pennsylvania, has been charged with one count of embezzling between $200,000 and $400,000 from the now defunct Brownsville General Hospital, where she had been employed. Details of how the alleged thefts occurred have not been released, but it was not until the bankruptcy of the hospital that the embezzlement was discovered. The thefts allegedly occurred between April 2000 and January 2005.

Read the story here, here and here.

Illinois Woman Accused Of Embezzling From Bank To Cover Up Charity Embezzlement

Michelle D. Knebel, 38, of Pocahontas, Illinois, has been accused of embezzling some $166,220 from the First Mid-Illinois Bank where she had been employed as an assistant manager, to cover up an ongoing embezzlement from Highland School Charitable Foundation for which she had served as bookkeeper and from which she had reportedly been taking funds its account at the bank since 1999. According to reports, when the charity decided to close its account at the First Mid-Illinois bank, Knebel began transferring funds from other clients to cover the losses she had created.

Read the story here, here and here.

Read the DOJ announcement here.

Kentucky Woman Sentenced In $200+K Embezzlement Case

Michelle L. Simmons, 34, of Glasgow, Kentucky, was sentenced to one year and a day in prison for embezzling some $217,000 from Bealand Campbellsville, Inc., where she had been employed as an office manager. In her guilty plea, Simmons admitted that she embezzled the funds between July 2004 and January 2008. She was also ordered to pay $217,549 in restitution. Prosecutors alleged that Simmons, who had control over the company's payroll and bill paying functions, "caused checks to be written to herself" and other funds wire transferred to her own accounts from the company's credit card accounts. She had been indicted on one count of wire fraud last January.

Read the story here and here.

Alabama Man Pleads Guilty To Filing False Tax Returns Resulting From Embezzlement

Sims Kirkland Lawson Jr. of Killen, Alabama, pleaded guilty yesterday to filing false tax returns for years 2002 through 2004 resulting from his misappropriation of $721,417 from an estate he managed during that time frame. According to prosecutors, Lawson spent the money on a lavish lifestyle, including extravagant vacations, jewelry, real estate improvements and other personal expenses. Lawson allegedly wrote checks from the estate payable to himself and used estate checks to pay his personal expenses. He faces up to 9 years in prison.

Read the story here.

Read the DOJ announcement here.

California Bookkeeper Sentenced In $1.8 Million Embezzlement Case

Foifua M. Atoafa, 44, of Garden Grove, California, was sentenced to 41 months in prison and order to pay $1.8 million in restitution for embezzling that amount from Tinnell Fibre, Inc., a small paper company based in Westminster, California, for whom she had been employed as a bookkeeper. According to prosecutors, Atoafa opened a personal bank account under the name Rincon Recycling, Inc., a name nearly identical to one of Tinnell’s vendors, and deposited numerous checks for her own benefit. The thefts occurred over a seven year period from 2001 to 2008.

Read the story here and here.

Update: Windle Sentenced To 15 Years In $14 Million Massachusetts Embezzlement Case

Jeffrey S. Windle, 42, of Harwich, Massachusetts, has been sentenced to 15 years in prison for embezzling more than a combined $14 million from his employer, Cambium Learning, Inc. and his church, South Dennis Congregational Church. Windle pleaded guilty in March to embezzling some $13.4 million from his employer and nearly $650,000 from the church where he had served as volunteer treasurer. Windle served as Director of Budget and Finance for Cambium Learning, Inc., based in Natick, Massachusetts.

Read FraudTalk's original posts on this story here and here.

Read the story here.

Former Massachusetts Museum CFO Indicted In $1.3 Million Embezzlement Case

Peggy Kempton, 58, of Hollis, New Hampshire, has been indicted for allegedly embezzling $1.3 million from the Fruitlands Museum of Harvard, Massachusetts where she had been employed as its chief financial officer. She has plead not guilty to the charges that include 14 counts of larceny over $250 by single scheme, three counts of fraudulent use of credit cards, and making false entries in corporate books. According to reports, Kempton is alleged to have made unauthorized credit card charges for personal expenses and college tuition for her children. She is also alleged to have then manipulated the museum's books in an attempt to cover up her thefts. According to prosecutors, the thefts occurred between January 2002 and February 2008 and involved 14 different credit cards. She is also facing a civil suit for recovery filed by the museum. The civil case alleges that Kempton's three children were also involved in the fraud.

Read the story here, here, here and here.

Update (7/2/10): Kempton was sentenced to 3-5 years in prison. She had pleaded guilty to all 18 counts last May.

Read the updated story here.

Florida Woman Sentenced To 10 Years For $500+K Embezzlement In Michigan

Patricia Harder, 67, currently of Florida, was sentenced to spend up to 10 years in prison for embezzling more than $500,000 from several businesses, including Community Mental Health in Mason County, Michigan, Hamlin Grocery and Tamarac Sport Fishing Dock Inc. Harder pleaded guilty in December to theft of more than $20,000 and was subsequently indicted in April on 8 counts of tax evasion. Harder was also ordered to pay $572,000 in restitution.

Read the story here, here, here and here.

2 NYC Councilman Staffers To Plead Guilty In $200K Embezzlement Case

Asquith D. Reid, 65 of Brooklyn, New York and Joycinth T. Anderson, 70, also of Brooklyn and the former chief of staff and aide to Councilman Kendall Stewart (D-Brooklyn), respectively, are due to plead guilty tomorrow to embezzling some $200,000 in taxpayer funds, according to the New York Post. According to prosecutors, the stolen funds had been earmarked for three Brooklyn charitable groups - the Central Brooklyn Community Services, Community Opportunity and Resource Development and the Donna Reid Memorial Education Fund. Details on how the scheme was accomplished have not been released.

Read the story here and here.

California Woman With Prior Conviction Bilks Non-Profit Out Of $350K

Lynn Marie Bennett, 58, of Shasta Lake, California, pleading no contest to charges of grand theft and identity theft for embezzling more than $350,000 from the Shasta Senior Nutrition Program, a non-profit subsidiary of Mercy Medical Center and Catholic Healthcare West. Bennett, who served as the non-profit's chief financial officer, previously spent 240 days in the Contra Costa County Jail in 1988 on similar charges. According to prosecutors, Bennett began issuing herself unauthorized checks shortly after she was hired in July 2000 and the thefts continued for 8 years. Investigators discovered bank deposit bags with cash never deposited at her home when she was arrested. Authorities filed a lien against her home, and seized five bank accounts, several vehicles, two boats and a boat trailer. Bennett's husband, Colin Keith Bennett, has been "marginally cooperative," according to the investigators. Upon her nolo contendre plea, Bennett was sentenced to 7 years in prison and ordered to pay $353,081 in restitution. She was originally charged in August 2008 on 328 felony counts, including embezzlement, grand theft, identity theft, writing forged checks and other related crimes.

Read the story here and here.

California Woman Fleeces Retirees Out Of At Least $350K

Maria Elna Flora, 59, of Sacramento, California, was arrested last week on charges she bilked several elderly retirees out of at least $350,000 in retirement savings. Flora, a licensed life insurance agent, sold annuities to her clients and then steered them into fraudulent real estate investments, according to prosecutors. Specifically, from January 2005 through August 2007, Flora allegedly convinced at least ten individuals living in Yolo, Butte, El Dorado, Sacramento, Solano, and Stanislaus counties to invest between $5,000 and $88,000 in the sham real estate investments. Flora promised returns of between 10 and 20 percent, made some initial payments, promising to return the funds at a later date. Prosecutors also contend that Flora spent the ill-gotten gains on a gambling habit, primarily at the Thunder Valley Casino. She is facing 92 charges, including grand theft, embezzlement and burglary.

Read the story here and here.

Wyoming Woman Arrested For Allegedly Embezzling Nearly $100K

Melinda Williams, 38, of Dubois, Wyoming, was arrested last week for allegedly embezzling some $98,000 from the Sawmill Lodge where she had been employed as a manager. According to prosecutors, Williams' thefts occurred over about a one year period and she used the stolen funds to make personal purchases, such as food, clothing, furniture and appliances. Specifically, Williams was charged with five felony counts of fraud and one count each of larceny and stolen property. According to prosecutors, Williams made unauthorized purchases with company credit cards.

Read the story here and here.

California Couple Get Off With Probation & Restitution In $165+K Embezzlement Case

Perrin Vidal Clark, 29, and his wife Rachel Jane Clark of Sacramento, California, were ordered to spend five years on probation and must pay restitution for embezzling at least $165,000 from Sonoma Sausage LLC in Napa, California where they were both employed. Specifically, they plead guilty last week to one count of grand theft by embezzlement; 26 counts of forgery, two counts of receiving stolen property; one count of burglary; and two special allegations of stealing more than $65,000 and $100,000, respectively. Perrin was employed as a sales director and Rachel as office manager. The Clarks reportedly forged Vance Sharp's, name, who is the owner of Sonoma Sausage, on unauthorized credit card transactions, among other things. The thefts reportedly occurred between 2007 and 2008.

Read the story here.

Illinois Woman Sentenced In $1 Million Embezzlement Scheme

Jennifer L. Campbell, 38, of Decatur, Illinois, was sentenced to 51 months in prison for embezzling $1,053,504 from Dowd Development Co. where she had been employed as the office manager. Campbell, who had previously pleaded guilty to one count each of mail fraud and tax evasion, was also ordered to pay full restitution. According to prosecutors, Campbell wrote checks payable to herself on business accounts and then failed to accurately enter those checks into the company's books and records. She then changed the identity of the payee in the company's check register maintained on the business computer and forged the drawer's signature on the checks. The scheme lasted for 7 years from 1999 to 2006, according to reports. Campbell used the money to support a lavish lifestyle, including jewelry, vehicles and home improvements.

Read the story here and here.

Florida Man Pleads Guilty To $900K Expense Fraud Scheme

Robert Gonzalez, 36, of Lake Mary, Florida, has pleaded guilty to embezzling more than $900,000 from Comstock Images Inc. of Mountainside, New Jersey, where he had been employed as the head of information technology. Specifically, Gonzalez plead guilty to one count of conspiracy to commit mail fraud and wire fraud and two counts of tax evasion. According to prosecutors, Gonzalez schemed with the company's former CFO, Geraldine Manuel, of Westwood, New Jersey, in a phony expense report scheme. Manuel has been separately indicted. Gonzalez used the company credit card on numerous occasions to make personal purchases of everything from electronics to furniture to vacations, which were then reimbursed by the company. The two split the proceeds. The thefts started in 2002 and went on until 2004.

Read the story here and here.

Virginia Parking Meter Repairman Embezzles More Than $100K

William Jones Fell, 61, of Manassas, Virginia, plead guilty to two felony counts of embezzlement for embezzling more than $100,000 from the City of Alexandria, where he had been employed as a parking meter repairman. According to prosecutors, Fell would get to work before hours, empty meters and stash the coins in his truck. Then he would exchange the coins for bills at a local supermarket. Fell had been employed by the city for 16 years. The thefts reportedly occurred over a one year period, according to Fell's attorney. He faces up to 40 years in prison.

Read the story here and here.

Update: Former Virginia Bank Exec Sentenced For Embezzlement

Rebecca Dawn Long, 36, of Jonesville, Virginia, was sentenced Thursday to 41 months in prison for embezzling $487,685 from The Peoples Bank in Ewing, Virginia, where she had been employed. Long plead guilty to five felony counts, in late January, including bank fraud, bank embezzlement, money laundering, making a false statement on a loan document and engaging in a monetary transaction in criminally derived property of a value greater than $10,000. She admitted to setting up a phony line of credit from which she misappropriated the funds.

Read FraudTalk's original posts on this story here and here.

Former Oklahoma Auditor Indicted For Embezzling More Than $1 Million; Gambling Blamed

Roger Q. Melson, Jr., 55, of Edmond, Oklahoma, has been indicted on 174 counts of embezzlement for allegedly stealing some $1.16 million in royalty payments from the Commissioners of the Land Office for which he had served as an auditor. According to prosecutors, Melson embezzled the funds to feed a gambling habit and was a frequent visitor at Oklahoma City's Remington Park racetrack. In order to carry off the embezzlement, prosecutors allege that Melson allegedly created an entity called "Commissioner of the Land Office" and registered it with the secretary of state’s office. Melson's scheme was uncovered this past April after it had gone on for almost five years. His attorney blamed the thefts on Melson's apparent gambling habit, which he has had for some ten years.

Read the story here, here and here.

Update (4/30/10): Melson's trial has been set for August 30th.

Update (8/28/10): Melson, now 56, pleaded guilty to 174 counts of embezzlement, admitted he stole $1.16 million and agreeing to make restitution.

Read an update of the story here.

Update (11/9/10): Melson was sentenced to 10 years in prison, plus 50 years of probation upon release. He must also make full restitution.

Update: New Hampshire Secretary Accused Of Embezzling Had 4 Prior Convictions

Desiree D. McLoughlin, 37, of Gonic, New Hampshire, who has been accused of embezzling some $80,000 from an unnamed law office in Portsmouth, New Hampshire, had four prior convictions for theft. According to prosecutors, McLoughlin had one theft conviction in 1991 and three in 2001. Details on McLoughlin's alleged embezzlement still have not been released.

Read FraudTalk's original post on this story here.

Read the story here.

Robert Allen Stanford, 4 Others Formally Indicted

Robert Allen Stanford, 59, of Houston, Texas and the Chairman of Stanford Financial Group, along with three other executives and the former chief executive officer of the Antiguan bank regulatory agency were indicted yesterday on fraud and obstruction charges related to a $7 billion scheme to defraud investors. The others indicted include Laura Pendergest-Holt, 35, CFO; Gilberto Lopez, 66, CAO; Mark Kuhrt, 37, controller; and Leroy King, 63, the former administrator and CEO of Antigua’s Financial Services Regulatory Commission. According to the indictment, the defendants conspired to defraud investors who purchsed $7 billion in certificates of deposit with the company's offshore entity, Stanford International Bank Ltd. ("SIBL"). The indictment includes the following charges, among others:

• That the defendants allegedly falsely claimed that SIBL’s assets grew from approximately $1.2 billion in 2001 to approximately $8.5 billion in December of 2008. The indictment alleges that, in fact, approximately $5 billion of SIBL’s reported assets consisted of notes on loans to Stanford and grossly overstated interests in “island properties,” including more than $2 billion added to the books in 2008 from an allegedly artificial real estate deal that Stanford and his co-conspirators conceived to inflate the bank’s reported assets;
• That Stanford and his co-defendants allegedly falsely represented to investors that SIBL’s investment strategy was to “minimize risk and achieve liquidity” and promised rates of return on CDs that in the end were simply too good to be true in light of the bank’s actual investments and assets; and
• That Stanford and his co-defendants allegedly made false and misleading representations about the regulatory scrutiny of the bank by Antiguan authorities, when, in fact, Stanford was making corrupt payments of more than $100,000 to King to ensure that the Antiguan bank regulatory authority that he headed did not accurately audit, or verify the assets reported in the bank’s financial statements.

Read FraudTalk's original post on this story here.

Read the story here and here.

Read the FBI announcement here.

Update (3/6/12): Stanford, now 61, has been convicted on 13 out of 14 felony fraud charges in connection to the $7 billion Ponzi scheme he operated over a period of some 20 years.  Stanford faces up to 230 years if the sentences are served consecutively.

Californian Charged In $820K Embezzlement Scheme

David J. Hillman, 30, of Aurora, Colorado, has been indicted for conspiring with his then girlfriend, Hillary Shaffer, xx, of Parker, Colorado, to embezzle $819,578 from Great-West Life & Annuity Insurance Co. According to prosecutors, Shaffer, who was an employee of the insurance company, secretly obtained and used the computer-access code of a co-worker to direct annuity payments from Great-West into bank accounts she and Hillman had signature authority. Shaffer previously plead guilty to embezzlement charges and was sentenced to 22 months in prison, plus restitution. Shaffer's thefts allegedly occurred between September 2001 and August 2005. The indictment against Hillman alleges that he helped launder and spend much of what was stolen by Shaffer.

Read the story here and here.

Former California Attorney and CPA Pleads Guilty To Embezzling $1.4 Million From Clients

Steven S. Krell, 61, of Los Angeles, California, a former attorney and CPA, pleaded guilty to embezzling some $1,476,900 from two of his clients. Krell was originally arrested in October 2006 on the embezzlement charges and lost both his law and accountancy licenses. Under his guilty plea agreement, where Krell plead guilty to one count of "subscribing to a false tax return," he admitted that he siphoned funds from to client accounts over a period between 1997 and 2003 for his own purposes and failed to report it as income. During that time, Krell was associated with the accounting firm of Green Hasson & Janks LLP. Sentencing is scheduled for August 17 where he faces up to 3 years in prison, plus a fine of $250,000 and restitution.

Read the story here and here.

Former Texas Bank Exec Pleads Guilty To Embezzlement

Tracy Eugene Culp, 44, of Texarkana, Texas, pleaded guilty last Friday to embezzling some $260,000 from the Cass County Bank of Queen City, Texas, where he had been employed as a vice president and branch manager over a two year period between October 2005 and June 2007. According to prosecutors, Culp created fraudulent loans and funnelled the money to his own personal accounts. Culp faces up to 30 years in prison, plus fines and restitution.

Read the story here, here and here.

Read the DOJ's announcement here.

Update: Texas Mother-Son Embezzlement Team Indicted

Ellen Moore Prude, 57, of Palmer, Texas and her son, Christopher Clark, 32, of Red Oak, Texas, have been indicted by an Ellis County grand jury on felony embezzlement charges. Prude and Clark are alleged to have embezzled some $428,000 from Ennis Paint Company, where they were both employed. Prude was employed as a payroll clerk and Clark worked in the warehouse. An audit recently revealed the scheme, in which Prude diverted company funds to personal accounts for Clark and herself, according to investigators. They were both indicted on one charge of theft over $200,000. Prude was also indicted on the charge of "tamper/fabricate physical evidence with intent to impair." The mother and son were arrested last November.

Read FraudTalk's original post on this story here.

Former Georgia Housing Authority Official Pleads Guilty To $130K Embezzlement

Kristi Kirkus Wilson, 44, of Conyers, Georgia, pleaded guilty last week to embezzling some $130,000 in federal funds from the Conyers Housing Authority, where she had been employed as its executive director. Wilson admitted to misusing the agency's credit cards for personal expenses, including vacations, meals, home improvements, including a barn, fencing and a waterslide, decorations and parties. The thefts occurred between 2000 and 2007, according to prosecutors. Prosecutors also alleged that Wilson's husband, Ronnie Paul Wilson, 43, a former Lease Enforcement Officer for the agency, was also involved in the theft and misuse of public funds. She faces up to 10 years in prison, a $250,000 fine and restitution.

Read the story here, here and here.

Read the DOJ's announcement of their indictment here.

Ohio Man Admits To Stealing $100K From Vet Group

Josh Slieme, 24, of Wheeling, Ohio, plead guilty Wednesday to embezzling some $100,000 from the Warwood Vets for whom he had been employed. According to prosecutors, Slieme wrote a check on the groups account, cashed it, and then spent the money gambling at a local casino. Slieme pleaded guilty to one count of embezzlement and two counts of forgery. He faces between 3-30 years for each count and must also pay restitution.

Read the story here.

Michigan Bookkeeper Accused Of Misappropriating $100K

Robyn Garver, 38, of Alanson, Michigan, has been charged with embezzling more than $100,000 from Windjammer Cove and Marina Development, of Petoskey, Michigan, where she had been employed as a bookkeeper. According to investigators, Garver purchased stamps and phone cards using company checks, selling them on eBay, and shipping them with a company fed-ex account. She was charged yesterday with 8 felony counts, including criminal enterprise conducting, embezzlement of more than $100,000, two counts of use of a computer to commit a crime and four counts of "uttering and publishing." She faces up to 20 years in prison, plus restitution and fines.

Read the story here and here.

Former DC Accountant Pleads Guilty To Stealing $575K From 2 Non-Profits

Charles Clifton, 34, formerly of Washington, DC, has plead guilty to embezzling some $575,000 from two D.C.-based nonprofits. Clifton admitted to embezzling $425,000 from the American Society for International Law from 2004 to 2008 and $150,000 from the American Bakers Association between 1998 and 2004. Clifton had been employed as a financial officer of both non-profits. Sentencing is scheduled for September 15th.

Read the story here.

Oklahoma Man Sentenced For Embezzling Nearly $90K From Tribe

Brandon Eric Lynam, 32, of Stroud, Oklahoma, was sentenced to 2 years in prison for embezzling nearly $90,000 in 2007 from the Otoe-Missouria Tribe while working in a tribe-owned store. According to prosecutors, Lynam simply skimmed the cash from the store’s till and then attempted to cover up the thefts by falsifying bank deposit slips. He was also ordered to pay restitution in the amount of $89,262.07. Lynam was originally indicted in September 2008 and pled guilty in December 2008.

Read the story here and here.

Read the DOJ's announcement here.

Trial Delayed For New Hampshire Woman Charged In $1.6 Million Embezzlement

The trial for Linda Bevins, 53, of Goffstown, New Hampshire, accused of embezzling $1.6 million from the Crotched Mountain Foundation, has been delayed for a sixth time. According to reports, the delay is to allow for a plea agreement to be reached. Bevins, who has colon and lung cancer, claimed she used the embezzled funds to pay for medical bills, vacations and her daughter's wedding. She had been employed as the foundation's payroll supervisor. According to reports, Bevins issued payroll checks to her daughter, Holly Sears, and herself, and funneled foundation money into personal bank accounts. The thefts occurred between 2004 and 2007, according to her own account.

Read the story here, here and here.

Connecticut Man Sentenced In $133K Misappripriation Case

Richard J. Cardone, 64, of Norwich, Connecticut, was sentenced to 4 years in prison, suspended after three months, for misappropriating $133,000 from the Connecticut Commission on Culture and Tourism, which his company, Office Support Systems LLC did business. According to investigators, Cardone made illegal withdrawals from a commission funded account between 2002 and 2007. His company was contracted to provide brochures and other marketing materials to individuals making requests through the state's tourism website. Cardone was originally charged with six counts of first-degree larceny and three counts of second-degree larceny last April.

Read the story here, here and here.

Update: Alabama Exec Sentenced In $4 Million Embezzlement Case

John W. Goff, 60, of Montgomery, Alabama, and a former founder of the now-defunct company, the Goff Group, was sentenced to 12 years in prison for embezzling some $4 million in insurance premiums intended for Greenwich Insurance Co. and XL Specialty Insurance. Goff was convicted last February by a jury on 23 counts of mail fraud, one count of embezzlement and one count of filing a false report in connection with the embezzlement. According to prosecutors, Goff lived a lavish lifestyle with a $1 million salary, a large Montgomery home, condos on the Gulf Coast, a jet plane and country club memberships.

Read FraudTalk's original post on this story here.

Read the story here.

California Bank Exec Sentenced In $236K Embezzlement Case

Alex Yan, 48, of Oakland, California and a former Business Relationship Officer with United Commercial Bank also in Oakland, was sentenced to 27 months in prison for embezzling some $236,000 from the institution. Yan plead guilty last February, admitting he stole the funds between 2004 and early 2007. According to prosecutors, Yan transferred funds from his client accounts and the bank to an account he controlled under a false name. When confronted, he admitted to the thefts and cooperated with the investigation, according to prosecutors. Yan allegedly had a gambling problem which led to the embezzlement, and he has been attending Gamblers Anonymous since January, according to reports. As part of the sentence, Yan must also make full restitution.

Read the story here, here and here.

Read the DOJ's announcement here.

Former Connecticut Housing Authority Director Sentenced For Embezzling $400K

Cassandra Ashe, 37, of North Haven, Connecticut, was sentenced to a year and a day in prison for embezzling nearly $400,000 in U.S. Housing and Urban Development funds while serving as the Executive Director of the East Haven Housing Authority and previously as the Section 8 coordinator for the New London Housing Authority. Ashe's husband, Jonathan D. Ashe, 44, who was an employee of the NLHA, was also involved in the embezzlements and sentenced separately to 46 months in prison. They have also been ordered to pay restitution in the amount of $397,191. Cassandra Ashe made 253 unauthorized ATM withdrawls using an agency credit card, according to prosecutors.

Read the story here, here and here.

Read the DOJ's announcement of their indictment here.

Nebraska Bank Executive Sentenced In Embezzlement Case

Stephanie Nielsen, 42, of Minden, Nebraska, was given a five year supervised release sentence for embezzling $111,592.63 from Farmers and Merchants Bank where she had been employed. Nielsen opened 3 unauthorized credit card accounts and took cash advances, according to prosecutors. She pleaded guilty last March and admitted she took the cash between October 2004 and September 10, 2007. She must spend six months home confinement with electronic monitoring and must also pay full restitution.

Read the story here and here.

Another light sentence, IMHO...

Virginia Office Manager Pleads Guilty To Embezzling $355K

Rosalind Deborah Wright, 50, of Fredericksburg, Virginia, has pleaded guilty to six embezzlement counts, admitting she stole more than $355,000 from a Spotsylvania dentist for whom she had been employed as an office manager. Authorities alleged that Wright's thefts occurred over a ten year period between 1998 and 2008 wherein she took insurance payments meant for the dentist and deposited them into her own accounts. When confronted by police, Wright, who was indicted last February on 11 felony counts, reportedly admitted to the thefts. Sentencing is scheduled for July 20th where she faces as much as 120 years in prison.

Read the story here, here and here.

North Carolina Office Manager Charged In $100K Embezzlement

Stacey Elaine Raper, 50, of Kannapolis, North Carolina, has been charged with embezzling more than $100,000 from P&E Machinery where she had been employed as an office manager in charge of payroll, among other things. Raper allegedly siphoned funds from the company meant as payroll taxes over a five year period.

Read the story here.

New Hampshire Woman Charged With Embezzling $80K From Law Firm

Desiree D. McLoughlin, 37, of Rochester, New Hampshire, turned herself in today after an arrest warrant was issued on theft by misapplication of property and two counts of theft by embezzlement. McLoughlin is alleged to have embezzled at least $80,000 from an unnamed law firm based in Portsmouth, New Hampshire. She has reportedly cooperated with authorities and is due back in court on June 22 for an arraignment hearing. Details on how the thefts occurred have not been disclosed.

Read the story here, here and here.

Pennsylvania Woman Faces Additional Embezzlement Charges

Opal Elizabeth Kerr, 57, of Hermitage, Pennsylvania, has been charged with embezzling soem $212,000 from Future Builders, a second company she worked for as a bookkeeper between 2005 and February 2009. Kerr had been previously charged with embezzling $192,000 from Hostetler Construction and Mill Work while she worked for them overseeing the company's finances between 2005 and 2008. In both instances, Kerr used her position to issue checks to herself, forged signatures and deposited company funds into her own accounts.

Read the story here, here and here.

Update: Nebraska Woman Sentenced For $116K Embezzlement

Jeanette Vanderveen, 49, of Gering, Nebraska was sentenced to 3-5 years in prison for embezzling at least $116,000 from Print Express in Scotts Bluff, Nebraska, where she had been employed as a bookkeeper. According to prosecutors, Vanderveen stole from her employer over a five year period, commencing in 2003, by writing checks to herself and to her personal vendors and credit cards.

Read FraudTalk's original post on this case here.

Read the story here.

Former NYC Lawmaker Sentenced To 10 Years For Fraud, Embezzlement

Brian M. McLaughlin, 57, and a former assemblyman for the New York City borough of Queens, was sentenced to 10 years in prison for fraud and embezzlement. McLaughlin pleaded guilty last year to charges of racketeering and perjury, admitting he embezzling $3.1 million from labor groups, his own re−election committee and the Electchester Little League. Prosecutors alleged that McLaughlin also took kickbacks from electrical contractors and used the funds in part to buy automobiles for his wife and his former mistress, Sonia Menezes. His alleged criminal activity occurred between 1995 and 2006, according to prosecutors. McLaughlin, a Democrat, was also the president of the New York City Central Labor Council. He is reported to have cooperated with prosecutors, leading to the recent indictments of Queens Assemblyman Anthony Seminerio and Santo (Sandy) Petrocelli, the former head of Petrocelli Electric. McLaughlin, who was originally indicted in October 2006, is scheduled to start his prison sentence on July 21st.

Read the story here, here and here.

Former Minnesota School Exec Charged In $1.4 Million Embezzlement From Native American Charter School

Joel Wayne Pourier, 39, of Shakopee, Minnesota, has been charged with several charges of "theft by swindle" for embezzling nearly $1.4 million from an American Indian charter school in Minneapolis, where he had served as executive director. Pourier's thefts from the Oh Day Aki Heart of the Earth Charter School, allegedly occurred over a five year period between 2003 and 2008. According to the complaint, Pourier forged signatures and transferred money from school accounts to his own bank accounts. Authorities describe Pourier's lifestyle as "lavish" alleging that he spent the money on a half million dollar home, high end vehicles and strip clubs. Meanwhile, the school was forced to close last year as a result of the apparent thefts and mismanagement. School board officials claim Pourier lied about his background to get the job.

Read the story here, here and here.

Read the criminal complaint here.

Update (7/12/10): Pourier pleaded guilty to eight felony counts of theft by swindle.

Iowa Bookkeeper Gets Slap On The Wrist For $200+K Embezzlement

Tammy Sue Brandt, 49, of Cedar Rapids, Iowa, who was convicted by a jury in March for first-degree theft in the embezzlement of some $210,000 from the Mercy Medical Center Foundation, where she had been employed as a bookkeeper for 28 years, was given a 10 year suspended sentence. The thefts reportedly occurred between 1995 and 2008 via a scheme in which she cashed foundation checks for her own benefit. Sixth Judicial District Judge Marsha Beckelman ordered the suspended sentence because Brandt had no prior convictions.

FraudTalk has chronicled this case here and here.

Read the story here.

Sorry folks, but this is a slap on the wrist for a crime that went on for 13 years. She should have done some real jail time here, IMHO.

Former Oklahoma Horse Association Director Arrested For Embezzlement

George Ronald "Ron" Canady, 55, of Oklahoma City, Oklahoma, was arrested May 15th on charges he embezzled more than $200,000 from the Oklahoma Horseman's Benevolent Protective Association, also known as the Thoroughbred Racing Association of Oklahoma. Canady, the former director of the Association, was charged on three felony embezzlement counts. Canady resigned from the association in 2007 after an audit found the discrepancies. In court pleadings, Canady has blamed his actions on a gambling problem. He has now filed for bankruptcy.

Read the story here and here.

Update (6/1/10): Canady was sentenced to 3 years in prison for embezzling more than $200,000 from the Oklahoma Horseman's Benevolent Protective Association where he had been employed as executive director for many years. He had pleaded guilty to the charges last December. His thefts spanned at least a two year period. He was also ordered to pay restitution and attend Gamblers Anonymous.

Vermont Woman Sentenced In Embezzlement Case

Julie L. Houle, 40, of Brattleboro, Vermont, was sentenced recently to serve 60-days in jail after her guilty plea to one count of wire fraud and one count of bank fraud for embezzling some $336,000 from CBI of New England, Inc. where she had been employed as an administrative assistant. She was also ordered to pay restitution in the amount of $276,127 . According to prosecutors, Houle's thefts began in or about 1999, when she began writing unauthorized checks to herself, for cash, or directly to her personal credit card and other personal vendors. The thefts lasted until 2007.

Read the story here.

Read the DOJ announcement here.