Pennsylvania Nursing Home Controller Sentenced In $628K Embezzlement Case

Gayle Phillips-Smith, 48, of Canonsburg, Pennsylvania, was sentenced to 37 months in prison for embezzling nearly $628,000 from the Baldock Health Care Center and the Humbert Lane Nursing and Rehabilitation facility, where she was employed as controller from 2001 to 2005. According to prosecutors, Phillips-Smith made unauthorized ATM withdrawals and electronic funds transfers to her own accounts.

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Texas Man Sentenced For Embezzlement

Donald Patrick Blair, 46, of Plano, Texas, was sentenced to 2 years in prison for embezzling some $1.2 million from the Christian Life Assembly of God church where he was employed as its business manager. Blair pleaded guilty last March to mail fraud and false tax return charges. According to prosecutors, Blair diverted the funds for his own use over a period of about 5 years between 2001 and 2006. He was also ordered to pay restitution of $1.5 million which includes back taxes.

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Pennsylvania Woman Charged In $1.6 Million Embezzlment Scheme

Vivian K. Williams, 50, of Allentown, Pennsylvania, has been charged with embezzling some $1.6 million from International Women's Apparel, Inc., over a nine year period. Prosecutors allege that Williams issued phony invoices from a fictitious company for services not rendered to the company. Williams was employed as an administrative assistant to the president and later director of human resources for the company during the period of the thefts. Prosecutors allege that Williams create a company called "The Copy Connection" which billed the company for non-existent services to the tune of $1,663,129, pocketing the proceeds. She faces up to 92 years in prison if convicted.

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North Carolina Woman Arrested For $300+K Embezzlement

Karen Leigh Lial Vinesett, 49, of Kings Mountain, North Carolina, has been arrested for allegedly embezzling some $313,000 from Gaston Medical Group where she had been employed over a three year period. Authorities allege that Vinesett forged checks for her own benefit. She has been charged with one count of embezzlement of $100,00 or more and two counts each of uttering a forged instrument and forgery of endorsement.

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Louisiana Banking Exec Pleads Guilty To $135K Embezzlement

Loretta Kathryn Balsamico, 51, of Covington, Louisiana, has pleaded guilty to embezzling $135,800 from Citizens Savings Bank where she had served as an assistant vice president. Prosecutors alleged that she had also falsified bank books and records in an attempt to cover-up her thefts. She is believed to have removed between $5,000 and $10,000 in cash per month from her teller drawer over more than a year period. Balsamico, who was terminated from the bank in 2007, faces up to 10 years in prison.

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Read the DOJ announcement here.

Read the criminal factual basis here.

New York Woman Sentenced For Embezzlement

Sharon Ann Fabiano, 55, of Kingston, New York, was sentenced to one year in prison after admitting she embezzled some $390,000 from a local professional office business. Fabiano's thefts spanned a six year period, according to prosecutors. She had plead guilty to grand larceny in the second degree, forgery in the second degree and falsifying business records in the first degree. Fabiano had used the stolen funds to pay personal expenses, personal debts and for her children.

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Update: Virginia Man Sentenced In $1.5 Million Embezzlement Case

Rick Eddleman, 57, of Norfolk, Virginia, was sentenced to six years and five months in prison for embezzling at least $1.5 million from his brother-in-law's business, Decipher, Inc., a maker of role playing cards where he had been vice president of finance. Eddleman had pleaded guilty last March to 12 counts of embezzlement in a scheme that lasted 9 years, according to prosecutors. Eddleman, in his capacity as head of finance for the company, paid himself double salary, wrote checks to himself and his family members and used company credit cards to pay for his personal expenses. In a civil suit filed by the company against Eddleman and his wife, Kathy Eddleman, he was ordered to pay nearly $8.9 million.

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Virginia Woman Sentenced In $782K Embezzlement Case

Charlotte M. Scott, 47, was sentenced to five years in prison for embezzling $782,600 from Virginia Commonwealth University Health System where she had been employed as a grants specialist. Scott, who was indicted in May 2008, pleaded guilty last December to seven felony counts of embezzlement for using institution funds to purchase transit tickets at a discount and reselling them, pocketing the difference. Scott was actually sentenced to 70 years, with all but 5 suspended.

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Update: Massachusetts Investment Exec Sentenced For Embezzling Nearly $400K

Mark J. Harrington, 53, of West Roxbury, Massachusetts and the former controller of Boston-based Anchor Capital Advisors, was sentenced to 2 years in prison for embezzling $387,000 from the firm's employee pension plan. Harrington, who was vice president and controller of the firm, was also ordered to pay $350,000 in restitution. According to prosecutors, Harrington, who was married, used the money to buy a house, a luxury SUV, breast implants and jewelry for his girlfriend. The embezzlement was accomplished with an accomplice, Carmine P. Arenella, wherein Harrington transferred funds over a six month period between July 2008 and December 2008. He was fired last January and indicted in February this year.

Read FraudTalk's earlier post on this story here.

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New Hampshire Bookkeeper Pleads Guilty To Embezzling $200K

Linda K. Blanchet, 45, of Milford, New Hampshire, has pleaded guilty to embezzling some $200,000 from her employer, Inside Track Cabling, a local family business where she had been employed as a bookkeeper. According to prosecutors, Blanchet wrote checks and transferred funds from client accounts to her own accounts to pay for personal expenses and items. The thefts allegedly occurred between November 2004 to March 2009. She faces up to 30 years in prison.

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Read the asset seizure pleading here.

Update On Missouri Embezzlement Case: Gehm Sentenced

John F. Gehm, III, 32, of Town and Country, Missouri, was sentenced to two years in prison for embezzling $104,000 from Pastoral Solutions, Inc., a church bulletin publishing firm based in Ellisville, Missouri for which he was employed as a sales manager. According to prosecutors, Gehm, who pleaded guilty last January, stole company checks and deposited them into his own accounts.

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Massachusetts Hedge Fund Manager Sentenced For Insider Trading

Michael K.C. Tom, 40, of Winchester, Massachusetts, was sentenced to one year and a day in prison for making insider trades that netted him $750,000 in ill-gotten profit. Tom reportedly made trades based upon insider knowledge about Citizens Financial Group's acquisition of Charter One Financial in May 2004 and was charged in 2005 with five counts of insider trading. Tom was an analyst with Citizens and left to found his own hedge fund firm, Global Time Capital Management. His original sentence, which was lighter, was appealed by prosecutors.

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Read the SEC litigation release on the case here.

Update II On JetBlue Embezzlement Case: Virginia Woman Sentenced

Carol Davidson, 43, of Midlothian, Virginia, was sentenced to 3 years in prison for embezzling some $338,000 from JetBlue Airlines, where she had been employed as a manager in their Richmond, Virginia location. Specifically, she was sentenced to a total 100 years in prison on the 13 felony counts including embezzlement, forgery and passing phony checks, but the judge suspended 97 years of the sentence and ordered her to make restitution of $309,735. Davidson has blamed her thefts on a compulsive buying disorder.

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Former Georgia Bank Employee Sentenced For $1.3 Million Embezzlement

Judy Yvette Rosser, 41, of Newman, Georgia, was sentenced to3 years and 5 months in prison for embezzling some $1.3 million from a local Wachovia Bank branch where she had been employed for 22 years. According to prosecutors, Rosser, who was responsible for processing exception transactions, including suspense and expense items, electronically transferred the funds into her personal checking account by creating and processing a complex series of fictitious debits and credits. The thefts occurred over an 8 year period. Rosser had pleaded guilty to a criminal Information, which charged her with embezzlement by a bank employee, this past April.

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Wisconsin Bank Executive Indicted For $635K Embezzlement

David K. Henke, 50, of Wisconsin Rapids, Wisconsin, was indicted by a federal grand jury for allegedly embezzling some $635,000 from the Rapids Municipal Credit Union where he served as president. Prosecutors allege that Henke misappropriated the funds between November 1999 and October 2008 by manipulating the financial institution's books and records. Henke was indicted on 20 felony counts, including bank fraud and embezzlement. He faces up to 600 years in prison, a $1 million fine, 5 years period of supervised release, and restitution.

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Delaware Woman Arrested For Embezzling $109K From Employer

Deborah N. Reitenauer, 59, of Millsboro, Delaware, has been arrested by Delaware State Police for allegedly embezzling more than $109,000 from Harvard Business Services, Inc. of Lewes, Delaware, where she had been employed as head of Franchise Tax since 2003. According to authorities, Reitenauer manipulated the amount the company owed in franchise taxes, essentially enabling her to skim funds that should have been paid over a period of years. Prosecutors allege that she deposited over 300 checks into her personal bank account totalling more than $109,000. Research suggests that Reitenauer was previously found guilty of embezzling $1.2 million from Poseidon Pools of Whitehall Township, Pennsylvania in 1993.

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Massachusetts Accountant Indicted For Embezzling $780K From Harvard Jewish Organization

William O'Brien, 58, of Framingham, Massachusetts, was indicted yesterday for allegedly embezzling some $780,000 from Harvard Hillel for which he had served as a contract accountant. According to reports, O'Brien worked on behalf of Harvard Hillel between 2003 and 2008 through New England Company Insource Services, which provides contract accounting services. Specifically, O'Brien was indicted on one count of forgery, one count of uttering, 11 counts of larceny over $250, 2 counts of larceny by continuous scheme, and 5 counts of failure to file income tax returns.

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Update (9/13/10): O'Brien has been sentenced to up to three years in prison for embezzling $780,000 from the Harvard Hillel. He plead guilty to forgery and larceny charges last week.

Pennsylvania Woman Pleads Guilty In $200K Hospital Embezzlement Case

Ellen C. Pocratsky, 55, of Uniontown, Pennsylvania, pleaded guilty Monday to embezzling at least $200,000 from the former Brownsville General Hospital where she had been employed as a bookkeeper. According to prosecutors, Pocratsky confessed to FBI agents in 2005 that she stole between $200,000 and $400,000 from the hospital between April 2000 and January 2005 using various methods, such as manipulating the employee benefits payouts to former employees. She is due to be sentenced this Fall.

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Update: Former California Bookkeeper Sentenced To 18 Years For $10 Million Embezzlement

Annette C. Yeomans, 51, of Escondido, California, was sentenced to 18 years in prison for embezzling some $9.9 million from Quality Woodworks, Inc., of San Marcos, California, where she had been employed until 2008 as chief financial officer. According to prosecutors, Yeomans spent the money on a gambling habit and to sustain a lavish lifestyle that included shopping sprees and luxury items that included a collection of some 400 pairs of shoes. She was also ordered to pay restitution. In her plea agreement, Yeomans admitted she stole the money over a 7 year period between 2001 and 2007. She reportedly racked up thousands of dollars in credit card charges and had them paid off by the company.

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

Read the story here.

Missouri Man Pleads Guilty To Running Ponzi Scheme

Neal A. Jackson, 61, of Kirksville, Missouri, pleaded guilty this week to defrauding 26 investors out of more than $844,000 in a Ponzi scheme involving his companies, The Money Tree and Gestalt Group, Ltd. According to prosecutors, Jackson took in $1.4 million in investor funds and paid off earlier investors in the scam, pocketing the rest. He pleaded guilty to one felony count of mail fraud and faces up to 20 years in prison and a fine of up to $250,000 upon sentencing which is set for September 18th. The scheme reportedly started in the 1990s.

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New Jersey Man Sentenced To 30 Years For $6 Million Ponzi Scheme

Glyn W. Richards, 45, formerly of Haddon Heights, New Jersey, was sentenced to 30 years in prison for defrauding investors out of some $6 million in a Ponzi-type scheme. Richards had pleaded guilty to mail fraud and money laundering in June 2008. According to prosecutors, Richards defrauded investors from January 2005 to June 2007 by falsely claiming to have defense contracts in Iraq with a trucking firm, All Freight Logistics, Inc., of Audubon, New Jersey. He reportedly promised extraordinary returns, but in fact paid earlier investors with later investor funds. According to reports, Richards became a fugitive early this year, but arrested in Tampa, Florida in February. He has had a prior arrest and conviction for theft by deception, according to media reports.

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Read the criminal Information here.

Some victims set up a blog called Glyn Richards Scam here.