Georgia Nursing Home Administrator Accused Of Embezzling More Than $500K

Mary O. Burroughs, 66, of Savannah, Georgia has been charged with embezzling as much as $500,000 from the Riverview Nursing & Rehabilitation Center where she had been employed as an administrator. Authorities allege that Burroughs used her position to embezzle at least $235,000 over a period of one year, from May 1, 2009, and April 30, 2010, and believe the losses could exceed half a million dollars. Burroughs, who was charged earlier this month with money laundering, credit card theft and identity theft, has pleaded not guilty. She is believed to have used company credit cards for personal expenses, issued checks made payable to companies controlled by relatives and stole property.

Read the story here and here.

Update (11/30/10): Burroughs pleaded guilty yesterday to misappropriating more than $325,000 from the Riverview Nursing & Rehabilitation Center. Her son, Aaron Burroughs, 31, also pleaded guilty yesterday to charges he obstructed a federal grand jury investigation into the case.

California Woman Arrested For Allegedly Embezzling $1.6 Million

Holly Daunielle Martin-Campbell, 37, of Inglewood, California, was arrested yesterday on charges she embezzled nearly $1.6 million from Blue Daisy Cement Products where she had been employed as a bookkeeper and administrator. According to authorities, Martin-Campbell began depositing customer checks into her own accounts in or about 2004 and continued over more than four years. Authorities believe Martin-Campbell used the stolen funds to finance a lavish lifestyle that included a newly built home, luxury automobiles, a Ducati motorcycle, sporting events and high end restaurants.

Read the story here and here.

Update: Martin-Campbell reportedly has a prior criminal history of theft. She served a 16 month prison sentence for credit card fraud.

Update (3/5/11): Martin-Campbell, who pleaded no contest to the charges last December, was sentenced to 11 years and 8 months in jail.

Oklahoma Woman Charged With Embezzling $176K From Church

Christine Mae Lorenz, 48, of Okeene, Oklahoma, was charged with embezzling more than $176,000 from the First Baptist Church of Okeene where she had served as treasurer. According to prosecutors, over more than a four year period between February 2005 and May 2009, Lorenz stole $127,748 from one of the church's accounts. Over a similar period, Lorenz allegedly stole another $48,895 from the church's general fund checking account. Lorenz had been hired as treasurer of the church in September 2004 and remained in that position until June 2009.

Read the story here and here.

Ohio Woman Sentenced In Bank Fraud Case

Patricia Lynn Davis-Boarman, age 52, of Mogadore, Ohio, was sentenced to two years in prison for embezzling $143,466.86 from the Falls Savings Bank and North Akron Savings Bank where she had been employed as an executive. According to prosecutors, over an eight year period, from 2001 until 2009, Davis-Boarman created at least five fraudulent loans in the names of bank clients without their knowledge or consent, keeping the proceeds for herself. Davis-Boarman pleaded guilty on April 23, 2010 to a criminal information with one count of bank fraud. She was ordered to pay restitution of $159,551.12.

Read the story here.

Read the DOJ announcements here and here.

Hat Tip: Reader Joe.

Former Massachusetts Condo Treasurer Accused In $102K Embezzlement Scheme

Edward M. Richards, 55, now of Brockton, Massachusetts, has been charged with embezzling some $102,000 from the Hillcrest Village Condominium Association in East Bridgewater, where he had served as treasurer. The charges follow Richards' reported confession to members of the association wherein he admitted stealing from the group over a four-year period to pay for personal expenses.

Read the story here.

Utah Man Sentenced In $250K Embezzlement Case

Bart Andersen, 39, of Hooper, Utah, was sentenced to one year in prison after pleading guilty last February to charges he embezzled about $250,000 from Big D Construction, where he had been employed. Specifically, Anderson plead guilty to two counts of communications fraud and one count of theft by deception. Anderson allegedly misused company credit cards to pay for personal expenses, such as travel, meals and automobile expenses, among others. Anderson had been employed as a senior project manager for Big D Construction since 2005. Authorities also prosecuted a co-defendant and alleged co-conspirator, Kent Bruce McKenzie, 43, of Syracuse, Utah, who worked as a subcontractor to Big D. The schemes spanned approximately nearly 2 years from May 2007 until March 2009, when Anderson was

Read the story here, here and here.

Louisiana Office Manager Pleads Guilty To Embezzling $551K

Patricia K. Landry, 59, of Reserve, Louisiana, pleaded guilty to charges she embezzled $551,355 from an unnamed dermatologist in New Orleans for whom she had been employed as office manager. Prosecutors alleged that Landry stole from the firm's health care benefit plan funds to pay for at least four personal credit cards. Authorities believe Landry frequented gambling establishments using the credit cards which she then paid for by company funds. Her scheme spanned three years, from 2007 through 2009, inclusive.

Read the story here and here.

Read the criminal factual basis here.

New Mexico Auction Owner Accused In $478K Embezzlement Case

Randy Bouldin, 39, of Portales, New Mexico, has been charged with embezzling more than $478,000 from an auction for 1,000 head of dairy cattle held by the auction firm he owns, Portales Livestock Auction. Authorities allege that in December 2008, Bouldin wrote a worthless check in the amount of $478,669 for auction proceeds to a customer, after depositing the actual proceeds into his own bank account. Authorities closed down Bouldin's auction house after a number of similar complaints were registered, specifically for “Serious violations of the Packers and Stockyards Act.” Bouldin also faces numerous civil actions for recovery of monies by former clients.

Read the story here, here and here.

Former Detroit Mayor Kwame Kilpatrick Indicted On Fraud & Tax Evasion Charges

Kwame M. Kilpatrick, 40, now of Southlake, Texas, and the former mayor of the City of Detroit, was indicted Wednesday on 10 counts of mail fraud, three counts of wire fraud, five counts of filing a false tax return, and one count of tax evasion. Beginning in 1999, Kilpatrick, a Democrat, is alleged to have devised a scheme to use the Kilpatrick Civic Fund, a tax-exempt social welfare organization to pay for personal expenses and to fund his mayoral campaigns in 2001 and 2005. Prosecutors allege Kilpatrick used at least $640,000 of these funds for his campaigns, as well as for personal travel, car leases, college tuition, anti-bugging equipment and yoga lessons. Some observers were surprised that the indictment did not allege Kilpatrick received kickbacks from contractors or misuse of office as the grand jury was believed to be investigating. We note that last month, Kilpatrick was sentenced to 14 to 60 months in state prison for violating probation in the criminal case involving sexually explicit text messages and an affair with an aide that forced him out of office in September 2008. In that case, Kilpatrick was ordered to pay $1 million in restitution to Detroit for lying in a civil lawsuit that cost the city $8.4 million.

Read the story here, here and here.

Read the DOJ announcement here.

Former Merchandising Exec For Apparel Company Charged With Misappropriating $14 Million In Vendor Fraud/Kickback Scheme

Christopher L. Finazzo, 54, of Garden City, New York, has been charged with misappropriating at least $14 million from Aeropostale Inc., where he had been employed as Executive Vice President and Chief Merchandising Officer. According to prosecutors, Finazzo conspired with Douglas Dey, the owner of South Bay Apparel Inc., which was a supplier to Aeorpostale. Finazzo allegedly steered $350 million in business to South Bay Apparel and received $14 million in direct kickbacks from Dey. The two reportedly invested $13 million from the scheme in three real estate ventures the two controlled. The vendor kickback scheme spanned some 10 years, from 1996 until 2006. Finazzo was fired from Aeropostale in November 2006, according to reports. Research reveals that last March, Finazzo was promoted to Executive Vice Presidebnt of Merchandising for Corona, California-based Anchor Blue, a clothing retailer with 112 stores in Western US.

Read the story here, here and here.

Former Colorado Bank Officer Sentenced For Embezzling $535K

Patricia Cabano, 56, formerly of Craig, Colorado and now of West Sacramento, California, was sentenced to 40 months in prison for embezzling $535,530.67 from the Craig, Colorado branch of the Bank of Colorado where she had been employed as operations officer. According to the indictment, Cabano allegedly had “largely unsupervised access to customers’ accounts” and made electronic transfers to her own accounts, as well as those of family members and bank “customers she favored.” Cabano's scheme allegedly spanned more than four years from July 1998 through November 2002. Cabano, who was originally charged in June 2009 with 31 counts of bank fraud, pleaded guilty to 2 counts this past April in a plea agreement.

Read the story here, here and here.

Read the DOJ announcement here.

Hat Tip: Reader Joe

Former Indiana Municipal Bookkeeper Charged With Embezzling $369K

Rebecka A. Fee, 56, of New Albany, Indiana, was charged with embezzling more than $369,000 from the Town of Brownstown, Indiana, where she had been employed as clerk-treasurer for nearly a decade. According to prosecutors, Fee, who was responsible for payroll, among other bookkeeping duties, allegedly over-paid herself on at least 121 separate occasions. Fee's scheme lasted nearly four years from January 2006 until October 2009. She faces up to 30 years in prison, plus a fine of up to $1 million and restitution.

Read the story here and here.

Read the DOJ announcement here.

Hat tip: Reader Joe

Update (11/18/10): Fee was sentenced to 33 months in prison and ordered to pay full restitution.

Former New York Union Exec Pleads Guilty To $300K Embezzlement Used To Pay For Hookers & Gambling

Daniel Hughes, 49, formerly of Queens, New York, pleaded guilty to charges he embezzled some $294,000 from the Port Authority Field Association Local 111-S, a union whose members do roadway work at the agency's area airports, bridges and tunnels. Hughes had served as president of the Union. According to prosecutors, over a nearly 5 year period, from January 2005 until December 2009, Hughes abused the union's credit cards and ATM accounts by paying for male and transvestite prostitutes and gambling junkets. Hughes faces up to 57 months in prison. Hughes, who is apparently morbidly obese, reportedly paid as much as $500 per date with the prostitutes.

Read the story here, here, and here.

Read the DOJ announcement here.

Former Finance Director For Delaware School Charged With Embezzling $150K From District

William Hitch, Jr. of Laurel, Delaware, was charged with embezzling more than $150,000 from the Laurel School District where he had been employed as finance director. Authorities believe Hitch's scheme, which involved fraudulently authorizing overtime salary and other compensation for himself, dates back to September 2001. He has been indicted on 99 charges that include felony theft, felony misusing computer information, and the misuse of public information. Hitch resigned from the school system last December.

Read the story here, here and here.

Update (7/20/10): Hitch pleaded guilty to one count of theft, one count of tampering with public records and one count of misusing a computer system. The other 96 charges have been dropped. In exchange, Hitch has agreed to make full restitution of the nearly $151,000 he stole. He will also be placed on one year's probation, but will not have to serve jail time.

Former Illinois Investment Advisor Sentenced In Michigan Union Pension Fraud Scam

John A. Orecchio, 44, formerly of Arlington Heights, Illinois, was sentenced today to 9 years and 4 months in federal prison for embezzling more than $24 million from several union pension funds in Michigan. Orecchio was also ordered to pay some $26.4 million in restitution, plus a $50 million civil judgement in favor of the U.S. Department of Labor. Prosecutors alleged that over a four year period, Orecchio, as a partner and co-founder of AA Capital Partners, defrauded six separate union pension funds, including those of the Michigan Regional Council of Carpenters and the Operating Engineers, Local 324 spending investment funds to support a lavish lifestyle that included luxury vehicles, thoroughbred racehorses, private jet junkets to Las Vegas and tropical islands, luxury sports events, real estate and an investment in a strip club. According to reports, approximately $100 million of the nearly $200 million in pension funds invested with Orecchio has been recovered, thus far.

Read the story here, here, here and here.

Read the criminal information here.

Virginia Man Pleads Guilty To Charges He Embezzled $480K

Terry A. Miller, 47, of Hampton, Virginia, pleaded guilty Monday to charges of submitting false tax returns in connection with additional unreported income he allegedly embezzled from Virginia Home Medical, where he had been employed as a accountant and controller. According to prosecutors, over a six year period from 2002 until 2008, Miller wrote a series of company checks to himself, depositing them into his own accounts. He also allegedly wrote checks to the company's cash account and then used the money himself as well as wrote checks to third party personal vendors, such as his own credit card accounts. Miller is scheduled to be sentenced October 4th.

Read the story here and here.

Update (10/27/10): Miller was sentenced to 18 months in prison and ordered to pay $342,907 in restitution.

Former Maine Town Official Embezzled As Much As $200K

Cindy L. Dunton, 47, of Newburgh, Maine, is accused of embezzling as much as $200,000 from the municipal coffers of the Town of Newburgh, where she had served as deputy treasurer. This past April, Dunton had pleaded guilty to embezzling nearly $150,000 over a two year period, between 2007 and 2009. However, a town audit revealed that $199,536 was unaccounted for the three year period 2006 through 2009. Authorities said the losses could go higher. Dunton was hired back in 1999. The town audit revealed that Dunton issued at least 17 checks to herself or her husband, Alan Dunton, ranging from $2,800 to $21,500.

Read the story here, here and here.

Watch the video of town meeting discussion here.

Update (10/27/10): Dunton was indicted by a Penobscot County grand jury on charges she embezzled $199,536 from the Town of Newburgh over the course of four years, from January 1, 2006 to the end of 2009.

Update (4/11/11): Dunton pleaded guilty today to charges she embezzled nearly $200,000 from the Town of Newburgh, Maine where she had served as deputy treasurer. She faces up to 10 years in prison and must make full restitution, plus pay $50,000 in expenses to cover the cost of the investigation and prosecution. Watch the news video here.

Update (7/5/11): Dunton was sentenced to 20 months in prison and ordered to pay a total of $252,000 in restitution.

Georgia Woman Charged In $2 Million Embezzlement Case

Sandra L. Coombs, 38, of Waycross, Georgia, was indicted last Thursday on charges she embezzled more than $2 million from Ace Pole Co., a local utility pole manufacturing business where she had been employed. According to prosecutors, over a four year period, from August 2005 through June 2009, Coombs forged a series of checks payable to herself which she deposited into her own accounts. Specifically, Coombs has been charged with 25 counts of bank fraud and five counts of aggravated identity theft. Authorities believe Coombs spent the money to fund a lavish lifestyle which included shopping sprees, Carnival Cruise trips with friends, home renovations and gifts to her family and friends. Coombs, who had worked for the company in a bookkeeping capacity for 8 years, had been arrested on April 22, 2009, for possession of methamphetamine and marijuana.

Read the story here.

Hat tip: Reader Joe.

Update (10/20/10): Coombs, now 39, pleaded guilty yesterday to one count of bank fraud and two counts of aggravated identity theft in connection with a scheme to steal more than $2 million from Ace Pole Company of Blackshear, Georgia.

West Virginia Woman Charged With Embezzling $100K From Dentist Office

Kecia Lynn Southerly, 44, of Ridgeley, West Virginia, has been charged with embezzling more than $100,000 from an unnamed local dentist office where she had been employed. According to authorities, over a two and a half year period, beginning in 2007 until late 2009, Southerly forged "numerous" insurance reimbursement checks, cashing them for her own use.

Read the story here.

Developing...

Resume Liar's Club Expanded & Updated

Marquet International Ltd.'s Resume Liar's Club has been updated and expanded with 17 new profiles. The new ones include well known controversial figures like former Salomon Smith Barney's shooting star, Jack Grubman, but also others, such as Chris Bushnell, a young man who faked his way into Harvard University. Some of these folks devolve into white collar criminals. Others were just plain stupid. None of them figured they were going to get called out. We hope you find it interesting.

Check out the Resume Liar's Club here.

2 West Virginia Woman Charged With Embezzling $100K From Charity

Kelli Jo Marcum, 33 (right) and Garnet Ann Fitchpatrick, 52 (left), both of Kermit, West Virginia, have been charged with embezzling nearly $100,000 from ABLE Families, a local non-profit charity meant to assist needy families where they were employed as office assistant and program coordinator, respectively. According to authorities, over the past five years, Marcum and Fitchpatrick conspired with each other, writing checks to themselves and pocketing the funds. When confronted, the two each confessed to the thefts, according to reports. Specifically, the two women have each been charged with embezzlement, five counts of forgery, conspiracy and grand larceny.

Read the story here.

Update: Marcum and Fitchpatrick each plead guilty to one count of fraudulent scheme admitting they embezzled at least $85,875.83 from the non-profit agency over a period of five years. They are due to be sentenced in January 2011.

New York Bank Manager Accused Of Stealing More Than $400K From Safety Deposit Box

Thomas Cararo, 35, formerly of Dickinson, New York and currently of Charlotte, North Carolina, has been charged with stealing some $410,000 from a safety deposit box at Citizens Bank in Binghamton, New York, where he was employed as a bank manager. According to authorities, Cararo began making cash deposits in October 2006, shortly after opening a safety deposit box for one of the bank's customers, Leonard Wilcox, 79, who wanted to safeguard his cash after flooding at his house, where it had been kept in a safe.

Read the story here, here and here.

Former Arkansas Bank Exec Accused Of Embezzling $278K

Kelly Harbert, 44, of Little Rock, Arkansas, has been accused of misappropriating $277,800 from One Bank & Trust of Little Rock where she had been employed as a senior vice president and commercial loan officer. Harbert has been sued by the bank to recover monies in a scheme that involved Harbert allegedly creating fraudulent loans in the names of bank customers, obtaining cashier's checks and depositing them into her own accounts. When confronted about the phony loans, Harbert reportedly admitted to the scheme and claimed she was "under severe financial difficulties." Harbert began working for the bank in 2001. She has not yet been charged criminally.

Read the story here and here.

Developing...

2 Former Virginia Farmworkers Charged With Embezzling $200K

Michael J. Nemeyer of Free Union, Virginia and Joanne Thompson of Palmyra, Virginia, were arrested and charged yesterday with embezzling more than $200,000 from Georgetown Farm, also in Free Union, where they had been employed. Georgetown Farm is owned by Edgar Bronfman, Sr., the son of the founder of the Seagram liquor empire. Details have not yet been released concerning the nature of the thefts, although it is alleged to have occurred over a more than three year period, from January 2007 to April 2010.

Read the story here, here and here.

Developing...

Update (12/7/10): Nemeyer and Thompson were indicted by an Albemarle County grand jury on charges they embezzled at least $200,000 from Georgetown Farm where they had been employed. Nemeyer was indicted on 17 counts of embezzlement spanning from 2005 until 2010 and Thompson was indicted on 5 counts of embezzlement from 2009 to 2010.

Update (10/28/11): Nemeyer was found NOT GUILTY by a jury on the alleged embezzlement charges filed against him.

California Vineyard Worker Charged With Embezzling $220K

Ignacio Barboza, 48, of Lodi, California, was arrested last week and charged with grand theft and forgery for allegedly embezzling some $220,000 from the Bokisch Ranches vineyard where he had been employed as a foreman. Barboza is alleged to have falsifyied employee time cards and then pocketing the money. He has reportedly paid back approximately $100,000 in cash and property. Barboza's phantom employee scheme began in 2004 and continued until last month, when he resigned.

Read the story here and here.

Former Claims Adjuster In Louisiana Sentenced For Embezzling Nearly $300K

Edward Paul "Tiger" Verdin, 36, of Franklin, Louisiana, was sentenced to 46 months in federal prison for embezzling nearly $300,000 from Louisiana Oilfield Contractor's Association, (LOCA) where he had been employed as a claims adjuster. Prosecutors alleged that Verdin fraudulently funnelled $297,772 from LOCA, a local self insured worker's compensation group, to his own company, Legal Risk Management Consultant, a phony private investigative firm he created in July 2007. The company was paid for private investigative services not rendered. Verdin, originally charged in December 2009, pleaded guilty to mail fraud and money laundering charges this past January. Verdin was also ordered to pay restitution in the amount of $285,395.

Read the story here, here and here.

Read the DOJ announcement here.

Hat Tip: Reader Joe.

Update New York Vampire Filmmaker Sentenced For Embezzling $266K

David R. Williams, 53, of Buffalo, New York, was sentenced to six months in jail for embezzling some $266,000 from VWR International, a local scientific equipment maker, where he had been employed. Williams reportedly stole the funds over a three and a half year period from February 2006 until July 2009, by misusing company credit cards, to finance his micro-budget horror, urban action and pornographic movies. Williams, who pleaded guilty on March 16th to grand larceny, must also pay full restitution to VWR. His films, produced by Red Scream Productions, include “Red Scream Nosferatu,” “Prison of the Psychotic Damned," “FrightWorld” and “Red Scream Vampyres.”

Read the story here, here and here.

Update: California Woman Pleads Guilty In $500K Embezzlement Case

Brenda Kaye Kemper, 58, of Lodi, California, pleaded guilty Friday to charges she embezzled nearly $500,000 from Big Valley Aviation Inc., a local employee owned aircraft service company where she had been employed as its sole finance officer and bookkeeper. The losses were originally thought to be as much as $1.1 million, but actual damages were determined to be $494,000 after an accounting audit was performed. She is alleged to have fraudulently used company credit cards for personal use over a seven year period. Kemper, who was arrested and indicted in January 2009, plead guilty to felony charges of grand theft and falsification of corporate books. She faces sentencing in September.

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

Read the story here.

Update (1/15/11): Kemper, now 59, was sentenced to 40 months in prison.

Wisconsin Man Charged With Embezzling Nearly $1 Million

Gary R. Deml, 62, of Lacrosse, Wisconsin, has been charged with embezzling $959,000 from Bernie Buchner Inc., where he had been employed as the company's office manager and sole bookkeeper. Prosecutors allege that over a span of ten years, from 2000 until earlier this year, Deml forged checks from the company and kept the proceeds. Deml's business, All Season Refrigeration Inc., was purchased by Bernie Buchner Inc. in 2000.

Read the story here, here and here.

Update (5/18/11): Deml, now 63, was sentenced to 2 years in jail. He had pleaded guilty to three felony counts embezzlement, forgery, and fraudulent writings.

Update: Former Cape Cod Bank Exec Pleads Guilty To $179K Misappropriation

Kathleen Morris, 34, of Truro, Massachusetts pleaded guilty yesterday to charges she misappropriated $179,397 from the Seamen's Bank in Provincetown where she had been employed as a commercial lending vice president. According to prosecutors, Morris created 15 false loan applications from 2007 to 2009 in the names of friends and family members, including her mother Jean Bodman, which she then approved herself. Morris claimed she took the money to help her mother who had been financially victimized by a sibling with a drug problem. However, prosecutors showed that Morris bought motor vehicles and went on a Caribbean cruise with some of the ill-gotten gains. Morris, who was originally charged on 47 fraud counts last year, was sentenced to 2½ years in jail with one year to be served, five years of probation, continued psychiatric counseling and full restitution to Seamen's Bank. She has also been banned from working in the financial industry for life. Morris reportedly started at Seaman's Bank in 1997 as a teller and worked her way up to vice president.

Read FraudTalk's original post on this story here.

Read the story here, here and here.

Tennessee Financial Advisor Accused Of $5.5 Million Ponzi Scheme

Aaron Donald Vallett, 32, of Brentwood, Tennessee, has been accused by the Securities and Exchange Commission of operating a Ponzi-type investment fraud scheme through his financial advisory firm, A.D. Vallett & Co. LLC, that bilked investors out of as much as $5.5 million. According to the SEC complaint, from September 2008 and April 2010, Vallett raised approximately $5.5 million from 19 investors through three unregistered offerings. Further, Vallett promised investors that they would receive "secured notes" for their investments with his firm, which were to be made in "various investments" including real estate. Instead, the SEC claims that Vallett spent a "substantial" portion of the investment funds on paying earlier investors returns and for personal expenses. The SEC obtained a temporary court order freezing the Vallett's assets. The firm's web site claims to be the "exclusive investment services provider" for the Nashville Predators professional hockey team. The SEC complaint alleges Vallett violated the Securities Act of 1933 and the Investment Advisors Act of 1940. No criminal charges have yet been filed. We note that FINRA, the Financial Industry Regulatory Authority, indicates multiple sanctions against Vallett, including a four suspension in 2008 and fines for various violations and infractions. He was also "permitted to resign" from a prior employer, Cambridge Way, Inc., for "misappropriation of proprietary material" and "violation of acknowledged company policy and code of ethics."

Read the story here, here, here and here.

Read the SEC complaint here.

Clearly a little due diligence would have revealed these prior bad acts for this character and no one should have invested with him.

South Florida Jeweler Charged With Operating $40 Million Ponzi Scheme

Luis Felipe Perez, 38, of Miami, Florida, has been charged by the Securities & Exchange Commission of operating a Ponzi-type investment fraud scheme that defrauded investors out of as much as $40 million. The SEC alleges that Perez, who has been charged with six counts of securities fraud, used his personal and family relationships to lure about 35 mostly Hispanic people to invest in his jewelry business, pawn shops in New York or in diamonds he held claimed to hold in a safety deposit box, promising returns of up to 10 percent per month. However, authorities believe Perez used the investment funds to pay earlier investors and to live a lavish lifestyle. Perez, who is president of Lucky Star Diamonds Inc. and Luis Felipe Jewelry Design Corp. reportedly began his fraudulent scheme in 2006 and continued until it fell apart in June 2009 when he could no longer repay investors. Perez' lavish lifestyle included a $3.2 million home, $1 million worth of jewelry, exotic vacations that cost him $200,000 a year, a private jet, expensive artwork and $100,000 in political contributions.

Read the story here and here.

Read the SEC complaint here.

Former CFO From Virginia Charged With Embezzling Nearly $400K From Health Care Concern

Judy Hall, 59, of Abingdon, Virginia, has been indicted on charges she embezzled some $389,000 from Tug River Health Care Association, Inc., a non-profit health concern where she had been employed as chief financial officer. According to prosecutors, Hall issued fraudulent checks from the health concern to herself over a period of a year and a half between April 2008 and July 2009. Hall allegedly forged two signatures on each check and deposited them into her own accounts in banks in Virginia. Authorities also allege that Hall erased records of the phony checks then intercepted checking account statements from Tug River’s bank, altered them by replacing the phony checks with copies of legitimate checks, and then photocopied the altered record so it would not be detected. Hall has been charged with theft from an organization receiving federal funds and faces up to 10 years in prison, plus fines and restitution.

Read the story here and here.

Former Washington State Banker Sentenced For Embezzling $112K

Jeffrey Lynn Giddings Jr., 27, of Tacoma, Washington, was sentenced to one year in prison, plus six months of home detention and then five years of supervised release for embezzling $112,626 from Key Bank, where he had been employed as an operations manager. Giddings must also pay full restitution. According to prosecutors, over a one and a half year period from October 2007 to February 2009, Giddings used three different schemes to embezzle funds of three different bank customers. The schemes included opening a line of credit in the name of one of his relatives and withdrawing funds from an elderly couple's account without their knowledge and consent. Giddings was indicted for bank fraud in November 2009 and plead guilty to the charge in December 2009.

Read the story here and here.

Idaho Woman Charged With Embezzling $105K

Jennifer A. Handy, 31, of Rexburg, Idaho, has been arrested and charged with four counts of grand theft in connection with her alleged embezzlement of some $105,000 from the Forsberg Law Office where she had access to a trust account held at Wells Fargo Bank. Prosecutors allege Handy's thefts began in January 2008 and continued until April 19, 2010 and involved four specific checks written from the trust account in the amounts of $14,000, $37,000, $44,000 and $10,000, respectively. Details are sketchy at this point.

Read the story here and here.

Update (8/27/10): Handy was sentenced to 3 years in prison. She must also pay full restitution.

Former New Jersey Bank Executive Charged With Embezzling $600K

Brian M. Campbell, 41, of Bayonne, New Jersey, was arrested and charged today with embezzling more than $600,000 from Pamrapo Savings Bank, where he had been employed as a managing director. Campbell faces 54 counts of mail fraud and money laundering for allegedly embezzling commission fees siphoned into his own accounts. Prosecutors allege Campbell falsified paperwork to divert commission fees from Pamrapo Service Corp., a bank subsidiary, to himself, starting in 2007 after his compensation was reportedly reduced. In March 2010, the bank itself had to pay a $5 million fine to settle regulatory action charging it had failed to report "illegal and suspicious transactions."

Read the story here, here and here.

Update (3/22/11): Campbell, now 42, was convicted today of 33 counts of mail fraud.

Update (11/21/11): Campbell is expected to be sentenced today and faces up to 20 years in prison for embezzling more than $571,000 from Pamrapo Service Corp.

Update 11/22/11): Campbell was sentenced to just 6 months in prison.  What a travesty of justice.

Massachusetts Woman Charged With Embezzling More Than $100K From Church Coffers

Donna M. Rood, 47, of Tyngsborough, Massachusetts, has been indicted for allegedly skimming "well over" $100,000 from the collections coffers of the St. Mary Magdalen Roman Catholic church where she had been responsible for counting collections. Specifically, Rood has been charged with larceny by embezzlement over $250 and making false entries in corporate books. Prosecutors allege Rood simply kept some of the cash from the collections and deposited them into her own accounts. Rood held that position from 2003 until June 2009 but is believed to have stolen the funds between 2005 and 2009. The scheme was uncovered by a parish priest who had privately counted the collections and found discrepancies with Rood's count. Prosecutors believe Rood took mostly large bills for herself.

Read the story here, here and here.

Watch a news video here.

Update (6/14/11): Rood pleaded guilty to charges of embezzlement over $250 and making false entries into corporate books. She was sentenced to 5 years probation and ordered to pay $90,000 in restitution.

Missouri Man Pleads Guilty In $750+K Embezzlement Conspiracy

Larry Covington, 50, of Ash Grove, Missouri, pleaded guilty yesterday to charges he was involved in an embezzlement conspiracy that defrauded the city of Nixa, Missouri, out of $756,010. Specifically, Covington plead guilty to four felony counts, including conspiracy to commit mail fraud, mail fraud, conspiracy to commit money laundering and theft from an organization receiving federal funds. According to prosecutors, Covington, his wife, Paula Covington, 53, and another former Nixa city employee, David W. Griggs of Willard, Missouri, created three phony businesses and submitted a total of 272 fraudulent invoices to the city of Nixa, splitting the proceeds for themselves. According to the 51 count indictment filed against the three co-conspirators in May 2009, their scheme spanned a four and a half year period, from October 18, 2004, through February 25, 2009. Paula Covington plead guilty last month money laundering charges and was sentenced to one year and a day in prison. Griggs plead guilty last August to felony counts including conspiracy to commit mail fraud, theft from an organization receiving federal funds and conspiracy to commit money laundering. He is awaiting sentencing. Larry Covington faces up to 70 years in prison, plus restitution.

Read the story here and here.

Pennsylvania Woman Charged With Embezzling $1.3 Million From 2 Companies

Kathleen A. McCullough, 47, of Collier, Pennsylvania and the sister of Allegheny County Councilman Charles McCullough, has been charged with embezzling some $1.3 million from two companies she had been employed by in a fiduciary capacity. Prosecutors allege that McCullough embezzled $1.14 million from Mackin Engineering Co., where she worked as the company's accountant, and $139,000 from Radiance Surgery Center, where she worked as the chief financial officer. Prosecutors allege McCullough wrote herself checks and paid credit card bills with company funds. McCullough's brother, Charles McCullough, 55, is accused of stealing $154,000 from a local widow for whom he had power of attorney.

Read the story here and here.

Update (8/28/10): McCullough was sentenced to two to four years in prison for her embezzlement in this case. All in, prosecutors believe she stole more than $2 million from Mackin Engineering and Radiance Surgery Center, where she had previously been employed as finance officer.

Read an updated story here.

New York Investment Advisor "To The Stars" Arrested & Charged With Fraud

Kenneth I. Starr, 66, of New York City, was arrested and charged last Thursday with wire fraud, fraud by an investment advisor and money laundering in connection with the alleged Ponzi-type investment fraud scheme that defrauded his clients as much as $30 million. According to prosecutors, Starr, through his firm Starr & Company, LLC, ran a complex set of schemes involving his son, his wife, Diane Passage, prominent New York Democratic Party politician Andrew Stein and "a former national official of a major political party," and "a partner at a prominent national law firm." Starr, no relation to Whitewater prosecutor Kenneth W. Starr, counted noteworthy Hollywood clients such as Wesley Snipes, Uma Thurman, Goldie Hawn, Al Pacino, Sylvester Stallone, Candice Bergen, Martin Scorsese, and Ron Howard. Other high profile clients reportedly include former William Morris chairman Jim Wiatt, photographer Annie Leibovitz, Jacob "Jacob the Jeweler" Arabov, illusionist David Blaine, heiress Rachel "Bunny" Mellon, publisher Robert Ziff, former Secretary of State Henry Kissinger and Caroline Kennedy. According to the complaint, Starr engaged is two types of fraudulent schemes: first, soliciting investments from his clients and then diverted the money to himself, his family and close associates; and second, making unauthorized transfers of client funds to himself and close associates. We note that Starr is an attorney by training and his wife, Dianne Passage is reportedly a former stripper and pole dancer who became his third wife.

Read the story here, here and here.

Read the indictment here.

Hat tip: Reader Doug

Update (3/3/11): Starr was sentenced to 7 1/2 years in prison. He had pleaded guilty last September to wire fraud and money laundering.

Former Arizona Office Manager Sentenced In $265 Embezzlement Case

Kacee M. Sissener, 29, currently of San Diego, California and formerly of Scottsdale, Arizona, was sentenced to two years in prison for embezzling some $265,000 from an unnamed medical practice in Scottsdale where she had been employed as office manager. Sissener pleaded guilty to fraudulent schemes and artifices, a Class 2 felony, and theft, a Class 4 felony. According to prosecutors, over an 18 month period, Sissener transferred funds to her American Express account in amounts as high as $16,000 per month. She must also pay restitution in the amount of $265,196.

Read the story here and here.

South Carolina Woman Sentenced For Embezzling $1 Million

Cheri Burnett Abraham, 51, of Moore, South Carolina, was sentenced to 30 months in prison for embezzling some $1 million from Christian Supply, of Spartansburg, where she had been employed as director of administration. According to prosecutors, Abraham forged checks over a period of about 7 years, made out to companies she controlled called Domestics Ltd. and Living by Design. She pleaded guilty to federal bank fraud charges last August. Abraham was also ordered to pay $500,000 in restitution.

Read the story here, here and here.

Former Oregon Bookkeeper Accused Of Embezzling $1.2 Million Over 13 Years

Doris Jean Harris, 61, of Eugene, Oregon, has been accused in a civil suit filed against her of embezzling at least $1.2 million from Transition Management Inc., where she had been employed as a bookkeeper. Harris reportedly resigned last April, a week after the IRS began an investigation at the company. The suit alleges Harris' thefts spanned a 13 year period. Details of the embezzlement are unclear at this time, however, she has reportedly admitted the thefts and claims to pay back the company.

Read the story here.

Update (10/5/10): Harris was sentenced to 15 years in prison for embezzling what is now believed to be $1.5 million from Transition Management. She pleaded guilty to 68 counts of felony theft. She was also ordered to pay restitution of $1.2 million. She has blamed the thefts on a gambling addiction. Harris apparently kept some of the company payroll taxes for herself instead of remitting them to the IRS. Harris had worked for the company and a predecessor company for 42 years.

Read an update on the story here.

Pennsylvania Municipal Tax Collector Charged With Embezzling $200K

Michael O’Neill, 50, of Jenkintown, Pennsylvania, and the former tax collector for the municipality, has been charged with embezzling $201,181 from the town. Prosecutors believe the misappropriations had occurred over several years where O'Neill would take funds and later pay them back, but ultimately could not make the repayments. O'Neill has been charged with theft of public funds. Authorities believe O'Neill was a heavy gambler, losing $182,000 at the Parx Casino between December 2008 and December 2009.

Read the story here, here and here.