Former Minnesota Attorney Charged With Embezzling $2 Million

Michael Scott Margulies, 56 of Minneapolis, MN, was charged Wednesday with embezzling some $2 million from the law firm of Lindquist and Vennum where he had been a partner. Authorities allege Margulies misappropriated the funds over a 16 year period, from 1994 through 2010, through a variety of methods, including false documentation, fraudulent expense reports, false invoices and forged checks.. He faces up to 20 years in prison for the one count of wire fraud he has been charged with. Margulies, who had been with the law firm since 1987, has been disbarred.

Read the story here, here and here.

California Attorney Sentenced In $900K Embezzlement Scheme

Mel Wayne Campbell, 56, of Orange County, California, was sentenced to 4 years in prison for his role in an embezzlement scheme that bilked nearly $900,000 from Kia Motors America, Inc. Prosecutors alleged that Campbell conspired with his now former wife, Cecile Nhung Campbell, 55, a certified public accountant who was formerly employed at Kia Motors, along with her brother, Long Ngoc Ho, 50. Together, the trio misappropriated some $889,000 from the company by setting up a fake company called U.S. Customs Service Detail in 2002 and issuing phony invoices for which Cecile Campbell (pictured here) executed three large wire transfers for payment. Mel Campbell pleaded guilty Thursday to one felony count of receiving stolen property and three felony counts of money laundering, and sentencing enhancements for aggravated white collar crime and property damage. Mel Campbell has resigned from the Bar. Cecile Campbell faces up to nearly 17 years in prison while Ho faces up to 12 years.

Read the story here.

Nevada Woman Sentenced For Embezzling More Than $200K From Veterinarian

Michele Davenport, aka Michele Mahoney, 45, of Reno, Nevada, was sentenced to 8 years in prison for embezzling $213,221 from Davyd Pelsue, a local veterinarian, for whom she had been employed as office manager. Davenport reportedly used some of the ill-gotten gains to pay for lavish vacations, remodeling her home, gourmet food and other luxury items. Authorities alleged that she misappropriated the funds over a four year period. She plead guilty to the charges last year.

Read the story here and here.

FBI Releases Crime Statistics For 2009 - Drop Seen

The Federal Bureau of Investigation today released its annual report on crime statistics for 2009 indicating a drop in both violent and property crimes, which includes larceny/theft cases. According to the preliminary report, violent crime in the US decreased 5.5 percent and property crime declined 4.9 percent from 2009 over the prior year. The report, entitled Preliminary Annual Uniform Crime Report, runs counter to conventional wisdom, which would suggest that crimes of all types, including and especially white collar (property) crimes, would increase during economic down turns. Given that 2009 appears to have been the toughest year economically in decades, one would expect higher crime rates compared to 2008 (although that was not a great year either).

Read about the report here.

Read the full report here.

Former California Accountant Sentenced In $50 Million Ponzi Scheme Case

Roberto Heckscher, 56, of San Mateo, California, was sentenced to 20 years in prison for running a $50 million Ponzi-type fraud scheme that bilked investors out of as much as $50 million over a three decade period. Heckscher pleaded guilty last October to one count of mail fraud. He was also ordered to pay full restitution to his victims. In a prepared statement made to the court, Heckscher said he had started the scheme in 1979 after suffering big stock market losses and was never able to pull himself out of the hole he created. The scheme fell apart last June after he ran out of money and could not recruit any new investors. Heckscher was the owner of Irving Bookkeeping and Taxes in San Francisco and promised investors returns of as much as 13 percent returns on commercial loans. According to reports, Heckscher attempted suicide by overdosing on pills after his scheme unravelled. Heckscher is reportedly a big gambler.

Read the story here, here and here.

Former Bookkeeper At Delaware Law Firm Sentenced For $170K Embezzlement Scheme

Wendy Ann Davis, 44, of Bear, Delaware, was sentenced to 15 months in prison for embezzling some $170,000 from the law firm of Green, Green, Godowsky and McFadden where she had been employed as an office manager and bookkeeper for 24 years. Davis must also pay full restitution. According to authorities, Davis' scheme spanned a nine year period from 2001 until 2010. Davis pleaded guilty to 13 counts of mail fraud in February. She reportedly stole funds by issuing checks from law firm accounts and client escrow accounts.

Read the story here.

Former North Carolina Banker Charged In Fraudulent Invoice Scheme That Bilked Wachovia Out Of $11.2 Million Over 9 Years

Terry Scott Welch, 47, of Mooresville, North Carolina, was charged with misappropriating $11.2 million from Wachovia Bank where he had been employed as a vice president in charge of overseeing vendor payments. According to prosecutors, Welch conspired with a series of vendors to submit false invoices for goods and services the bank never received and received kickbacks in exchange. Specifically, Welch was arrainged on charges of mail fraud and tax evasion. Two other co-conspirators, John Cousar Jr., 47, of Albemarle and Delmar Dove, 59, of Charlotte were also charged with mail fraud and tax evasion. Other vendors provided goods and services to Welch, including renovations to his home and his relatives' homes, purchased golf carts, televisions, jet skis and gas grills, among other items. Authorities allege that Welch's scheme spanned 9 years.

Read the story here and here.

Hat tip: Reader Joe.

Update (6.17.10): Welch pleaded guilty to mail fraud and tax evasion charges yesterday.

Update (7/5/11): Welch, now 48, was sentenced to 70 months in prison and ordered to pay $12.9 million in restitution.  Cousar was sentenced to nearly 3 years in prison for his part in the scheme.

Former Police Cadet In California Charged With Embezzling $225K From Municipality

Kainat Syeda, 23, of Buena Park, California, has been charged with misappropriating more than $225,000 in cash fees paid to the City of Anaheim for release of impounded vehicles. Specifically, Syeda was charged with one felony count of the misappropriation of public funds, four felony counts of falsifying and altering records maintained at a public office, and 40 felony counts of the falsification and concealment of public accounts. Syeda is a former police cadet with the Anaheim Police Department. She is accused of stealing the cash payments for impound fees and then entering "no sale" at the department cash register on nearly 1,800 occasions over a period of more than three years from January 2006 and April 2009.

Read the story here and here.

Former Church Secretary In Georgia Charged With Embezzling As Much As $400K

Dawn Taylor Robinson, 40, of Buchanan, Georgia, has been arrested and charged with 332 counts of theft by taking in connection with her alleged embezzlement of as much as $400,000 from the Victory Fellowship Church in Bremen, where she had been employed as a secretary. Authorities believe Robinson misappropriated from the church's building fund over a ten year period.

Read the story here and here.

Update (5/5/12): Robinson has pleded guilty to eight charges felony theft by taking.

Two Ohio Men Charged In $150K Fraudulent Billing Scheme

John Joseph Briggle, 56, and Leonard P. Gorski, 55, both of Toledo, Ohio, have been charged with bilking the Toledo Hospital out of some $150,000 in a fraudulent billing scheme. According to authorities, over a two year period from May 2002 until July 2004, Briggle's printing company billed the hospital for supplies and services that were not delivered. Gorski, who was allegedly complicit in the fraudulent billings, was employed in the hospital's print shop during that time. They each of plead not guilty to charges of aggravated theft. Separately, we note that Briggle (pictured here) has been charged in Cuyahoga County in an unrelated case involving the alleged embezzlement of money from Cleveland Public Schools with a co-defendant, Dan Burns.

Read the story here and here.

California Mother-Daughter Charged In $2.3 Million Fraudulent Real Estate Scheme

Alice Kantin, 69 and her daughter, Dawn Marie Kantin, (pictured here at a court hearing) 37, both of Kern County, California, were charged with defrauding at least 32 individuals out of some $2.3 million in fraudulent a real estate scheme. According to authorities, the mother-daughter team ran Desert Air Real Estate Investments Inc., which offered "rent-to-own" agreements, purportedly taking titles on distressed properties and accepting rent that would go toward paying the mortgage. However, from at least August 2007 through June 2009, the Kantins are alleged to have kept the rent monies and allowed the mortgages to be foreclosed upon. They have each pleaded not guilty to the charges which include 44 counts of conspiracy, embezzlement, theft, notary fraud and forgery.

Read the story here, here and here.

Former Oregon Bookkeeper Sentenced In $742K Embezzlement Scheme From Tire Company

Aleda Zonn Carter, 47, of Turner, Oregon, was sentenced yesterday to nine and a half years in prison for embezzling more than $742,000 from Superior Tire Service in Salem, where she had been employed as lead bookkeeper, reporting directly to the company CFO. Authorities believe Carter embezzled between $860,000 and $1 million over a ten year period by making bi-monthly electronic transfers of funds directly into her own accounts. However, there is a six year statute of limitations and she was only charged with that portion. Carter previously pleaded guilty to seven charges of aggravated theft.

Read the story here.

Former North Carolina Municipal DSS Worker Pleads Guilty To Misappropriating At Least $112K

Cindy Brady, 50, of Charlotte, North Carolina, pleaded guilty to charges she misappropriated at least $112,000 from Mecklenburg County Department of Social Services, where she had been employed. Prosecutors allege that Brady received numerous fraudulent reimbursements for fake purchases of items for the agency's Giving Tree program, a program used to buy Christmas gifts for needy children and families. Authorities believe that between 2007 and 2009 Brady created false receipts and then submitted them to DSS for the phony purchases. She is also accused of using agency funds to pay as much as $30,000 in personal credit card charges. Brady faces up to 10 years in prison, plus fines and restitution.

Read the story here and here.

Update (6/30/11): Brady, now 51, was sentenced to 6 months in federal prison.  The total loss has now been determined to be about $120,000.

Delaware Woman Charged In $300K Embezzlement Scheme

Karen C. Hunt, 48, of Old New Castle, Delaware, was charged yesterday with embezzling nearly $300,000 from Aquilla of Delaware, a local adolescent drug and alcohol treatment center, where she had been employed as a bookkeeper and billing manager. Specifically, Hunt was charged with felony theft and six counts of falsifying business records in a scheme where she allegedly deposited reimbursement checks into her personal checking account and then falsified the books and records to hide the thefts. Authorities believe that over a five year period, from April 13, 2005 to April 5, 2010, Hunt deposited at least 343 checks meant for deposit for Aquilla into her account totaling $296,902.50.

Read the story here and here.

Former Vermont Office Manager Pleads Guilty To Embezzling Nearly $300K

Laura Giles, 49, of Colchester, Vermont, pleaded guilty yesterday to charges she embezzled some $290,000 from the Occupational Disability Management Center in Burlington, where she had been employed as office manager. Specifically, Giles plead guilty to felony counts of wire fraud and filing false tax returns. Authorities alleged that Giles misappropriated checks from the agency over a five year period from 2004 to 2009. She faces up to 20 years in prison, plus fines and restitution, upon sentencing, scheduled for August 30, 2010.

Read the story here and here.

Update (8/30/10): Giles was sentenced to 21 months in prison and must pay full restitution of $289,612.84.

Former Head Of URI School Of Education Sentenced For Two Embezzlement Schemes That Netted $2.2 Million

Robert D. Felner, 59, formerly of Jamestown, Rhode Island and the former director of the University of Rhode Island’s School of Education, was sentenced yesterday to 63 months in federal prison for embezzling a total of about $2.2 million from URI and the University of Louisville where he had been an administrator. According to prosecutors, Felner, together with a co-conspirator and former student, Thomas Schroeder of Port Byron, Illinois, engaged in a scheme to embezzle $1.64 million from URI's School of Education which he founded, plus another $560,000 from the University of Louisville where he later became a dean. Felner was also ordered to pay restitution in the amount of $510,000 to the University of Louisville, $1.64 million to URI and $88,750 to the Rock Island County Council on Addiction in Illinois that authorities say the defendants also defrauded. Felner was the director of the URI School of Education from 1996 to 2003 and then became a dean at the University of Louisville. Prosecutors alleged that from 2001 to 2008, Felner and Schroeder funnelled funds into a dummy nonprofit organization called the National Center on Public Education and Prevention. They were indicted in October 2008 with 10 counts of mail fraud, conspiracy to commit money laundering and income tax evasion. Felner plead guilty this past January. The two were also charged with tax evasion for the years 2002 - 2007.

Read the story here, here and here.

Former Missouri Car Dealership Manager Sentenced For $247K Embezzlement

Robin Stockstrum, 40, of St. Charles, Missouri, was sentenced to 21 months in federal prison for embezzling some $247,000 from Jim Trenary Chevrolet in Troy, Missouri, where she had been employed as an office manager. According to authorities, Stockstrum misappropriated car payments and made unauthorized credit card purchases to benefit herself and her relatives. Authorities claimed she intercepted wire transfers of money from General Motors to the dealership and then created phony records and/or doctored the dealership's financial records to conceal her theft. Stockstrum's attorney, John M. Lynch, Esq., claimed that she has a gambling addiction. Stockstrum plead guilty last January to one felony count of wire fraud in a plea agreement. She has also been ordered to pay full restitution.

Read the story here, here and here.

Former Manager At Texas Produce Company Pleads Guilty To Embezzling More Than $550K

Howard E. Fisackerly, Jr., 48, now of North Carolina, pleaded guilty today to charges he embezzled $551,831.55 from Texas-based Penick Produce, where he had been employed as farm manager. In the plea agreement, Fisackerly pleaded guilty to 2 embezzlement charges, but 19 others are to be dropped. He had been employed by Penick Produce from 1999 to 2008. Fisackerly was previously found not guilty by a jury on two other embezzlement charges after a three day trial last month.

Read the story here and here.

Tennessee Couple Charged With Embezzling More Than $550K From Pharmacy

Kenneth J. Campbell and Glenna R. Campbell, a couple residing in McMinnville, Tennessee have been charged with embezzling some $553,000 from the Stewart Pharmacy where Glenna Campbell had been employed as a bookkeeper and office manager for 25 years. Authorities allege that Glenna stole money orders, large sums of cash, made fraudulent credit card charges and deposited fraudulent payroll checks. Most of the thefts reportedly occurred in 2009, although the misappropriations date as far back as 2002. Glenna was fired last July after security cameras apparently caught her stuffing cash into her purse. Kenneth Campbell presumably aided and abetted Glenna and benefited from her misappropriations.

Read the story here.

Update (11/4/10): Glenna Campbell was convicted by a jury on one count of wire fraud, six counts of mail fraud and one count of money laundering. She was acquitted on two of the original charges. Her husband, Kenneth Campbell was acquitted on all 10 counts.

Former Finance Director Of Pennsylvania Convention Center Charged In $775K Embezzlement Scheme

William T. Barnes, 71, of Norristown, Pennsylvania was arrested and charged yesterday with embezzling more than $775,000 from the non-profit Valley Forge Convention &Visitor’s Bureau where he had been employed as Director of Finances and Administration. Barnes, who was charged with theft, forgery, tampering with records and other charges, allegedly embezzled a total of $775,509 over a 10 year period until he retired in February 2009, reportedly to pay child support and alimony. Authorities allege that Barnes wrote himself checks and forged signatures.

Read the story here and here.

Watch the video here.

Update (1/14/11): Barnes pleaded guilty to multiple charges admitting he embezzled more than $775,000.

Update (9/14/11): Barnes, now 72, was sentenced to 15 to 30-months in county jail, followed by about 9 ½ years of probation.  Barnes reportedly spent the funds to support a lavish lifestyle and a gambling addiction. 

Read an updated comprehensive article on the story here.

Illinois Law Firm Manager Charged With Embezzling $880K

Joan M. Sanchez, 52, of Oak Lawn, Illinois, was charged with embezzling more than $880,000 from the Chicago-based law firm of Kelly, Olson, Michod, Dehann & Richter LLC where she had been employed as an office manager for 24 years. According to authorities, Sanchez embezzled from the firm over a six and a half year period, from October 2002 to April 2009, issuing at least 234 checks that she deposited into her own accounts or made payable to a lunch club at the Chicago Mercantile Exchange. She is also charged with falsifying company records in order to conceal the thefts, which were discovered after a check bounced while she was out on vacation. Read the story here and here. Update (4/12/11): Sanchez, now 53, was sentenced to 8 years in prison today for embezzling nearly $900,000 from teh law firm of Kelly, Olson, Michod, Dehann & Richter LLC.

Former Municipal Treasury Employee In South Carolina Charged In $210K Embezzlement Scheme

Casaundra White, 29, of Yemassee, South Carolina, was arrested yesterday and charged with embezzling $210,012.44 from the Beaufort County Treasurer's Office where she had been employed as a clerk. Specifically, White was charged with six counts of embezzlement and five counts of conspiracy in a scheme that spanned nearly two and a half years between May 2007 and November 2009. According to authorities, White, together with her then-boyfriend, Adrian Coore, 36, of Burton, South Carolina, conspired to create fictitious vendor accounts and then she issued fraudulent tax over-payment reimbursement checks which they deposited into their own accounts. Coore is currently at large and wanted by authorities on five counts of conspiracy. We note that White was arrested in 2007 on the misdemeanor charge of breach of trust with fraudulent intent for stealing $600 from the Treasurer's Office. She reportedly paid the stolen funds back and quit, but was inexplicably rehired a year later. Read the story here and here . Update (3/28/11): White pleaded guilty today to charges she embezzled $210,000 in from the Beaufort County Treasurer's Office where she had worked as a clerk. However, her ex-boyfriend, Adrian Coore, who has also been charged in the conspiracy, is set to go on trial later this year.

Florida Woman Charged With Embezzling $1.4 Million

Mary Rebecca Thorn, 47, of Lakeland, Florida, has been charged with embezzling some $1.4 million from Tri-Venture Marketing, Inc. a local whole food brokerage company where she had been employed as company controller. Specifically, Thorn has been charged with one count of organized scheme to defraud, seven counts of grand theft of more than $100,000, one count of grand theft of more than $20,000, one count of making false statements to a financial institution and eight counts of money laundering. Authorities believe Thorn's scheme spanned a 7 year period, commencing in February 2003 until this past February.

Read the story here and here.

Read Thorn's arrest affidavit here.

Update (12/15/11): Thorn, now 48, pleaded guilty to grand theft and three counts of money laundering for stealing nearly $1.4 million from Tri-Venture Marketing, a food brokerage company.  She has been sentenced to 10 years in prison and ordered to pay $5.3 million in damages.

New York Man Accused Of Running $2 Million Ponzi Scheme

Jay M. Hoffman, 58, of East Meadow, New York, was arraigned last week on 22 counts of grand larceny and 2 counts of operating a scheme to defraud in connection with an alleged Ponzi-type investment fraud scheme that defrauded investors, including many family members and friends, out of at least $2 million. Hoffman plead not guilty to the charges. Prosecutors allege that through his company, Security Income Planners, Hoffman promised investors returns of up to 12 percent per year, but instead kept investor funds for himself or to make interest payments to earlier investors. Hoffman's scheme reportedly lasted some 20 years and involved more than 40 victims.

Read the story here and here.

Missouri Woman Pleads Guilty To Embezzling Nearly $400K From Credit Union

Joyce Buchanan, 55, of Kansas City, Missouri, pleaded guilty to charges she embezzled nearly $400,000 from Media First Credit Union, now known as First Financial Credit Union, where she had been employed as a branch manager. Specifically, Buchanan plead guilty to a two count information alleging theft from a credit institution and bank fraud. The credit union serves employees of The Kansas City Star. Buchanan admitted she embezzled $198,250 from the credit union over more than a four year period, from December 9, 2002 through January 16, 2007. She also misappropriated $198,553 in fraudulent loans. She faces up to 60 years in prison, plus fines of up to $2 million and restitution.

Read the story here.

Read the DOJ announcement here.

Hat tip: Reader Joe.

Update (11/4/10): Buchanan, now 56, was sentenced to 2 years in prison yesterday.

Virginia Bookkeeper Pleads Guilty To $433K Embezzlement Scheme

Jennifer R. Smith, 37, of Norfolk, Virginia, pleaded guilty to charges she embezzled $432,959 from medical software firm, Welligent Inc., where she had been employed as a business manager. Specifically, Smith plead guilty to four felony counts of embezzlement and prosecutors dropped five other counts in a plea agreement reached yesterday. Prosecutors alleged that Smith made 59 transfers of company funds to her own accounts beginning shortly after she was hired in 2006 until she was caught last December. The amount of the transfers started at $500 and increased over time. She is also alleged to have made unauthorized charges on company credit cards for her own use.

Read the story here.

Execs At NYC-Based Spongetech Charged With Financial Statement Fraud & Obstruction

Two top executives of New York City-based Spongetech Delivery Systems Inc. were arrested Wednesday and charged with fraud in an alleged scheme to defraud investors by reporting false financials and grossly overstated sales figures. Steven Y. Moskowitz, 45, of Flushing, New York, Spongetech's chief operating officer and chief financial officer, together with Michael Metter, 58, of Greenwich, Connecticut, its chief executive officer, were charged with conspiracy to commit securities fraud and with obstruction of justice by federal authorities. They are alleged to have engaged in a "pump and dump" scheme and falsified company financials by claiming revenues from nonexistent companies. Prosecutors claim that SpongeTech created five phony companies that accounted for 99 percent of its sales, including: SA Trading Co., USA Asia Trading, Dubai Export Import Co., New Century Media and Fresco Sales Corp.

Read the story here and here.

Hat tip: Reader Doug

Michigan Municipal Treasurer Pleads No Contest To Embezzling More Than $300K

Margaret Frances Jorasz, 51, of Wilson, Michigan, pleaded no contest yesterday to charges she embezzled more than $308,000 from Harris Township, Michigan, where she had served as town treasurer. Authorities believe Jorasz' thefts lasted about 7 years, beginning in 2002 and continuing until August 2009, when she resigned after the scheme was discovered. Jorasz simply wrote herself checks from township property tax account, according to reports. Jorasz, who was arrested on March 17, 2010, faces up to 10 years in prison and has reportedly already paid the restitution of $308,000 in full. Sentencing is scheduled for June 7. We note that Jorasz' husband, Alex Jorasz Jr., is a trustee on the township board.

Read the story here, here and here.

Update (6/7/10): Jorasz was sentenced to six months in jail plus 18 months probation. She has reportedly paid in full the $308,049 she stole in restitution.

Former New Jersey-Based Transportation Manager Pleads Guilty To Embezzling $650K From Shipping Company

Michael Hamm, 48, formerly of Flemington, New Jersey, pleaded guilty today to one count of access device fraud in connection with his alleged embezzlement of more than $650,000 from an unnamed shipping company for which he had been employed as a transportation manager. Prosecutors alleged Hamm used his position to order extra fuel cards, then altered them to allow for cash withdrawals at ATM machines. He also allegedly falsified invoices to conceal the theft. Hamm faces up to 15 years in prison upon sentencing, scheduled for August 9th. He must also pay full restitution.

Read the story here and here.

Update (10/20/10): Hamm, now 49, was sentenced to 33 months in prison for embezzling $659,383. His thefts spanned about 2 1/2 years.

Missouri Municipal Employee Pleads Guilty To Embezzling $120K

Lou Ann Allred, 60, of Callao, Missouri, pleaded guilty today to charges she embezzled some $120,000 from Callao City, where she had been long employed as the municipality's city clerk. Allred admitted she received cash payments for city services and instead of depositing the money into municipal accounts, embezzled the funds for her own personal purposes. Allred was also alleged to have written municipal checks to herself and forged the signature of the Callao Mayor and either cashed or deposited them into her own personal bank account. Allred's scheme lasted four years, from 2004 to 2008, according to prosecutors. She plead guilty to one felony count of mail fraud and faces up to 20 years in prison, plus fines and restitution.

Read the story here and here.

Read the DOJ announcement here.

Northern Virginia Accountant Sentenced In $1.1 Million Embezzlement Case; Had Prior History Of Embezzlement; Nearly Bankrupts Employer

Jose "Tony" Gutierrez, 46, of Winchester, Virginia, was sentenced to 10 years in prison for embezzling some $1.1 million from Transition Partners, a Reston-based IT consulting firm where he had been employed as an accountant. Gutierrez was also ordered to pay restitution in the amount of $1.1 million. Authorities alleged that Gutierrez, who had been hired by Transition Partners in January 2005, began writing checks to himself by May 2005. The transactions were disguised as payments into a health-insurance benefits fund and that Gutierrez removed pages of bank statements showing the checks written to himself and created thousands of phony computerized accounting entries to indicate money was being paid to the Aetna insurance company. His thefts led to the laying off of 10 employees at Transition Partners and nearly bankrupted the company. He was arrested last June after a co-worker finally discovered his scheme. Gutierrez reportedly spent some of the ill-gotten gains on home improvements, luxury vehicles and vacations, among other things. We note also that according to court records, Gutierrez admitted stealing about $35,000 from the Mental Health Association of Montgomery County between 2002 and 2004, when he was the director of finance, but he reached an agreement to repay the money in exchange for no criminal charges being filed against him.

Read the story here.

Northern Virginia Property Manager Accused Of Embezzling $365K

Wendy R. West, 35, of Alexandria, Virginia, has been arrested and charged with embezzling some $365,000 from the Overlook Community, a neighborhood association managed by Control Management Systems & Services Inc. where West had been employed. According to reports, West had been employed by Control Management Systems for nearly ten years and the thefts involved a reserve account held for Overlook. West, who was charged with felony embezzlement, was fired by the property management company.

Read the story here.

Texas Bank Exec Sentenced For Misappropriating As Much As $1.15 Million From Bank & Customers

Emma Garza Vigil, 48, of McAllen, Texas, was sentenced to 51 months in prison for misappropriating as much as $1,150,000 from Lone Star National Bank where she had been employed as a vice president & senior lending officer. According to authorities, Vigil used her position to conduct hundreds of thousands of dollars in fraudulent debit transactions from her loan customers’ bank accounts. She also fraudulently inducing the approval of a commercial loan, the proceeds of which were used for her own benefit. Vigil plead guilty to two counts of bank fraud last December. Vigil's misappropriation scheme lasted four years beginning in 2005. According to the DOJ announcement:

"Vigil conducted the fraudulent debit transactions in a variety of ways. In some
instances, she would fill out a loan advance slip with her customer’s loan
account information and request a teller to generate a cashier’s check made out
to the customer. Vigil would later forge the customer’s name on the check’s
endorsement line, wait for a period of time and then present the check to a
teller for cash. In other cases, Vigil simply filled out a checking or savings
account withdrawal slip with her customer’s account information and presented
the slip to a teller for cash. Vigil often informed the tellers that the cash
from these transactions would be hand-delivered to her customers under a
“banking made easy” approach to customer service. Vigil also employed a number
of other tactics to conceal her fraud including stealing from customers she knew
did not closely monitor their accounts and conducting transactions for amounts
that resembled monthly loan payments owed by her customers."

Vigil also admitted that she used bank client’s credit information to execute a $179,500 commercial loan application under the fake name Gilbert Posada Arana for her own benefit. As part of her sentencing, Vigil has also been ordered to pay $589,494.74 in restitution.

Read the story here and here.

Read the DOJ announcement here.

Hat Tip: Reader Joe.

Update: California Woman Pleads No Contest To Charges She Embezzled $560K

Michele Renee Ganczarski, 46, of Santa Clara, California, pleaded no contest last Thursday to charges she embezzled $561,927 from MacCorkle Insurance Service where she had been employed as an accounting manager. According to prosecutors, Ganczarski wrote herself 87 checks from company accounts over a period of nearly two years, between October 2007 and June 2009, and deposited them into her own accounts. Ganczarski was arrested in late July 2009 after an audit revealed a large amount of cash missing and authorities were contacted. She plead no contest to five counts of identity theft, four counts of forgery and one count of embezzlement. She was originally charged with 20 counts of embezzlement greater than $400, 19 counts of obtaining personal identification information for an unlawful purpose and 19 counts of forgery. Ganczarski will be sentenced on June 1, 2010 and faces up to 8 years in prison. She is still in custody in lieu of $2 million bond.

Read FraudTalk's original post on this story here.

Read the story here and here.

Update (10/23/10): Ganczarski was sentenced to eight years in prison Friday.

Update (12/10/10): Ganczarski was ordered to pay some $1.4 million in restitution.

Virginia Man Charged With Embezzling More Than $200K

James N. Kenney, 42, of Rapidan, Virginia, was charged Thursday with two counts of conspiracy to commit embezzlement, two counts of conspiracy to commit money laundering and 16 counts of embezzlement in connection with an alleged embezzlement scheme that bilked an unnamed local business out of more than $200,000. Authorities allege that Kenney conspired with an unidentified co-conspirator to steal the funds from the Culpeper, Virginia-based construction company over a six year period.

Read the story here and here.

Update (5/8/10): The victim company in question has been identified in court documents as Jolly Construction Company. His co-conspirator has been identified as Rebecca L. Stephens, 42, of Rapidan, Virginia (pictured here), who has been charged with two counts of conspiracy to commit embezzlement and two counts of conspiracy to commit money laundering, two felony counts of money laundering and 19 counts of embezzlement.

Update (7/28/10): Rebecca Stephens, now 43, pleaded guilty to charges she embezzled nearly $269,000 from Jolly Construction where she was employed in a bookkeeping capacity.