New Jersey-based Investment Adviser Pleads Guilty to $13.6 Million Ponzi Scheme

Sandra M. Venetis, 59, of Whitehouse Station, New Jersey, pleaded guilty to charges she defrauded at least 50 investors of more than $7 million by soliciting investments in a fictitious investment program. According to prosecutors, Venetis, the owner and principal of Systematic Financial Associates, Inc., over a period of about 3 years, from 1997 through August 13, 2010, offered a scheme that she claimed would fund loans to doctors for their quarterly pension plans. Investors poured about $13.6 million into the program. Instead, Venetis used the investment funds for her own benefit, to pay for Systematic Financial's expenses and to pay returns to earlier investors. Prosecutors alleged that Venetis used investment funds to support a lavish personal lifestyle. She plead guilty to one count of securities fraud and one count of transacting in criminal property and faces up to 30 years in prison, plus fines and restitution.

Read the story here and here.

Read the DOJ announcement here.

Massachusetts Woman Accused Of Embezzling $370K

Patricia "Pat" Duffey, 60, of Holliston, Massachusetts, is under investigation for allegedly embezzling as much as $370,000 from Currier Landscaping where she had been employed as a bookkeeper. According to reports, over a period of 10 years, Duffey paid for numerous personal expenses from company accounts, including her mortgage, credit cards, auto loans, kitchen remodeling, and vacation home remodeling. Duffey, who is a registered nurse and is Vice Chairwoman of the Holliston Board of Health, has denied the allegations and has not yet been charged. She is up for re-election next month.

Developing...

Read the story here.

Seminar: Vetting Key Executives In Private Equity, Venture Capital and M&A Transactions

This morning Marquet International hosted a breakfast briefing for clients and friends on the topic: Vetting Key Executives In Private Equity, Venture Capital and M&A Transactions. The seminar was well attended and a nice discussion ensued. Key areas of interest included privacy issues and how to conduct effective due diligence on foreign individuals. Watch for upcoming seminars and presentations here.

Texas Woman Sentenced For Embezzling $240K

Sherry Locke Edge, 48, of Midland, Texas, has been sentenced to 27 months in prison for embezzling more than $240,000 from the Condor Operating Co., a local oilfield operator, where she had been employed as an accountant and bookkeeper. According to authorities, over a period of 7 years, from the summer of 2003 until June 2010, Edge wrote numerous unauthorized checks to herself. She was also accused of creating false entries in the company books and records in an effort to conceal her thefts. Edge, who pleaded guilty to one count of mail fraud in January, was also ordered to pay restitution in the amount of $250,672.91, plus a fine of $25,000.

Read the story here and here.

Montana Woman Charged With Embezzling $190K From Union

Teresa M. Wilson, 57, of Butte, Montana, has been charged with embezzling $190,000 from the Plumber and Pipefitters Local 41 union where she had been employed as a secretary for 14 years. According to authorities, Wilson allegedly forged signatures on union checks over a five year period which she then deposited into her own accounts. Wilson has plead not guilty.

Developing...

Read the story here.

Update (5/17/11): Wilson has pleaded guilty to embezzling as much as $219,000 from the Butte Plumber and Pipefitters Local 41 union. She is scheduled to be sentenced on September 7, 2011.

Former Wisconsin Banker Sentenced For Embezzling More Than $250K

Lance E. Bauer, 26, of Sun Prairie, Wisconsin, has been sentenced to 2 1/2 years in prison for embezzling $227,764 from a customer's account at the local Park Bank branch where he had served as assistant branch manager. According to authorities, in 2009, Bauer cashed a bank client's certificate of deposit and then deposited the proceeds into his own account. According to the prosecutor, Bauer stole the money to support a drug habit. Bauer was originally indicted last November and pleaded guilty this past January.

Read the story here, here and here.

Combating the Higher Education Embezzlment Epidemic

Read our new article, Combating the Higher Education Embezzlment Epidemic here. Check out all of the recent cases in the past year:

Drake University
April 2011; Robert Alex Harlan, former director of student accounts, accused of embezzling at least $600,000 over a 7 year period. Harlan allegedly “manipulated institutional accounts” which he then converted for his personal use.

Vassar College
April 2011; Arthur H. Fisher, former project manager, accused of embezzling nearly $2 million over a 5 year period. Fisher allegedly set up a phony construction company and charged the college for work not performed. As an aside, a veritable arsenal was seized at Fisher’s home after his arrest.

Kansas City University of Medicine & Biosciences
March 2011; Karen L. Peltz, former President, CEO and Trustee, accused of embezzling more than $1.5 million over a 5 year period. Peltz allegedly engaged in a variety of fraudulent reimbursement schemes, including receiving additional compensation.

University of Montana
March 2011; Christine Rose Bitterman, former residence life employee, accused of embezzling more than $300,000 over a 7 year period. Bitterman allegedly pocketed cash payments made by students.

University of Vermont
March 2011; Celine Bernier, former administrative assistant at the UVM Extension program in Newport, Vermont, accused of embezzling $45,800 over a 5 year period. Bernier allegedly deposited checks made out to the institution into personal accounts she and her husband, Tom Bernier, controlled.

New Jersey City University
December 2010; Shaunette P. Ruffin-Moody, former office manager for the university’s student government organization, pleaded guilty to embezzling $502,000 over at least a 3 year period. Ruffin-Moody issued at least 219 unauthorized university checks to herself, her husband, Alexander Moody and three others.

Columbia University
November 2010; George Castro, formerly affiliated with the university in some undisclosed manner, charged with embezzling $4.5 million over a several month period. Castro manipulated university accounts and caused electronic funds transfers to accounts he controlled under the name of an apparent vendor.

Duke University
November 2010; John William Cotton, former head of the Department of Surgery, charged with embezzling $267,000. Cotton allegedly used his position to order goods and services for his own personal use paid for by the department.

Iona College
October 2010; Sister Marie E. Thornton, former vice president of finance, charged with and ultimately plead guilty to embezzling $1.2 million. Thornton, who reportedly had a gambling problem, issued college checks and used college credit card accounts for her own benefit and was also fraudulently reimbursed by the college with phony invoices.

Virginia Commonwealth University
October 2010; Lisa Jones Durham, former coordinator for a university community outreach program, pleaded guilty to embezzling more than $144,000 over a 3 year period. Durham obtained checks made out to herself under her former name to pay for personal expenses.

St. John’s University
September 2010; Cecelia Chang, former Vice President for International Relations, pleaded guilty to embezzling more than $1 million from the university. Chang created a non-profit entity which she represented was affiliated with the institution and fraudulently accepted donations which she converted for her own benefit.

La Salle University
May 2010; Stephen C. Greb, former director of food services embezzled about $5 million over at least a 20 year period. Greb created a phony food vendor and then authorized fraudulent payments which he pocketed.

Naropa University
April 2010; Ronda F. Devers, former accounts payable clerk, accused of embezzling nearly $600,000 over a 2 year period. Devers allegedly pocketed student refund checks by voiding them and reissuing them to herself and a girlfriend.

Unbelievable...

The Top 10 Embezzlement Cases In (Modern) American History

Read our newly posted full article on the Top Ten Embezzlements In US History here.

Iowa Man Charged With Embezzling $271K

Christopher Brooks, 35, of Missouri Valley, Iowa, has been arrested and charged with embezzling some $271,000 from the River City Barricade Company where he had been employed as office manager. According to authorities, Brooks wrote checks to himself over a four year period. Brooks has been charged with charged with 4 counts of felony theft By deception, and 4 counts of felony state tax evasion. It turns out that Brooks recently became a member of the Missouri Valley City Council in March 2010.

Developing...

Read the story here.

Former Pennsylvania Tax Collector Charged With Embezzling $224K

Loretta A. Matz, 69, of Lower Swatara Township, Pennsylvania has been charged with embezzling some $224,000 from the township for which she had been the long serving tax collector. According to authorities, Matz allegedly siphoned funds tax funds from local businesses, to support a gambling habit. Matz resigned last December after irregularities came to light after businesses complained that their paid taxes were not being credited. Matz reportedly admitted to police to having taken the funds.

Read the story here and here.

Florida Woman Who Embezzled Nearly $650K Claimed She Had Cancer To Deflect Scrutiny

Kelly Lisa Duncan, 46, of Fort Lauderdale, Florida, recently plead guilty to embezzling $647,799 from the Imperial Point Animal Hospital's Veterinarian Management Associates Inc., where she had been employed as an office manager. According to authorities, Duncan issued payroll checks "to non-existent employees and issuing second payroll checks to employees, which she later cashed at a local bank, using the money for her own benefit." Testimony given in the case by business owner and veterinarian Robert Buzzetti reveals that for three years Duncan claimed to have cancer in order to deflect scrutiny of the books and records she was charged with maintaining. Prosecutors allege that Duncan, over a period of nearly 7 years, from December 2004 to October 2010, siphoned funds from the business. Duncan was sentenced to 41 months in prison - the maximum allowable - for the one count of mail fraud to which she plead guilty.

Read the story here.

Read the DOJ announcement here.

Tennessee Woman Accused Of Embezzling $229K From Church

Jessica Lynn Tramel, 32, of Bristol, Tennessee, has been charged with embezzling some $229,265 from the Unaka Avenue Baptist Church where she had been employed as church secretary. Tramel has been charged with 150 counts of forgery, theft of property over $60,000 and identity theft. Tramel is believed to have issued checks to herself and forging signatories signatures.

Read the story here and here.

Former Legal Secretary In Michigan Charged With Embezzling At Least $100K

Wendy Ann Bernard, 41, of East Grand Rapids, Michigan, has been charged with embezzling more than $100,000 from the Law Offices of Gary McInerney, for whom she had been employed for 25 years. According to authorities, Bernard's scheme spanned nearly 7 years, from January 2004 to September 2010 and involved the use of a computer to commit a crime. Details are unclear at this time. She faces up to 20 years in prison if convicted on each charge: embezzlement of more than $100,000 and use of a computer to commit a crime.

Developing...

Read the story here, here and here.

Update (11/3/11): Bernard was sentenced to one year in jail and ordered to pay $543,212 in restitution.  She had pleaded guilty in July 2011. 

Former Illinois Banker Indicted For Allegedly Embezzling $4.4 Million

Mary Susan Becker, 56, of Jerseyville, Illinois, has been indicted on charges she embezzled $4.4 million from the Jersey State Bank where she had been employed since 1976. Becker began her career at the bank as an assistant cashier and ended up as executive vice president before she left the bank earlier this year. According to the indictment, Becker took money from a certificate of deposit for her personal benefit, was fraudulently reimbursed for expenses that had been inflated and electronically transferred monies from the bank's accounts to her own. Becker's scheme spanned at least 8 years dating back to 2003 or earlier and continuing through January 2011. Prosecutors are also seeking to seize certain of Becker's assets, including her home, two condominium units in Osage Beach, a 38-foot Donzi power boat, and various vehicles, retirement accounts and investments.

Read the story here and here.

California Woman Charged With Embezzling $178K From Bank

Rebecca Parra Cerna, 52, has been charged with embezzling $178,000 in cash from the BBVA Compass Bank branch she managed in Stockton. According to authorities, Cerna's thefts date back to 2008 when she also began to create bogus loans in an attempt to cover them up. Cerna reportedly spent the stolen monies, in part, on gambling.

Read the story here.

Update (7/26/11): Cerna pleaded guilty to grand theft by embezzlement.  According to prosecutors, the total stolen by Cerna was revised to more than $142,000.  In a plea agreement, Cerna was sentenced to 300 days in jail followed five years probation.  She must also pay restitution as determined by the probation department.  Additional details provided by prosecutors reveal that Cerna stole primarily from four bank customer CD accounts and that the thefts spanned 2 1/2 years, from May 19, 2008 through December 17, 2010.

Tennessee Woman Pleads Guilty To Embezzling $491K From Louisiana Union Benefits Fund

Theresa G. Waters, 45, of Murfreesboro, Tennessee and formerly of formerly of Rosedale, Louisiana, pleaded guilty to one count of embezzlement, admitting she stole more than $491,000 from the South Central Laborers Training and Apprenticeship Fund of Livonia, Louisiana where she had been employed. Authorities alleged that Waters misappropriated the monies over a four year period by making unauthorized credit card charges for personal purposes. Waters, who was indicted last August, faces up to 10 years in prison.

Read the story here and here.

Read the DOJ's announcement here.

Update (10/21/11): Waters, now 46, has been sentenced to 37 months in prison.

North Carolina Woman Accused Of Embezzling More Than $100K From Elks

Sheila Elliott, 62, of Hendersonville, North Carolina, has been charged with embezzling $100,515 from Elks Lodge 1616, where she had been employed as an office manager "entrusted to receive money". According to authorities, Elliott's scheme spanned a two year period, from July 1, 2008 until July 16, 2010.

Developing...

Read the story here.

Minnesota Woman Pleads Guilty To Embezzling $400K From Insurer

Kimberly Dana Swenson, 38, of Shoreview, Minnesota, pleaded guilty to charges she embezzled some $400,000 from Allianz Life Insurance Co of North America, where she had been employed as a "client services specialist." According to authorities, Swenson, an 8 year employee of the insurer, misappropriated the funds over a two year period beginning in 2008. Swenson, who was originally charged on March 11th, faces up to 20 years in prison upon sentencing for the one count of mail fraud.

Read the story here and here.

Update (4/27/11): Swenson has now pleaded guilty to one count of mail fraud in connection with her embezzlement of about $400,000 from Allianz Life Insurance Co in Minnesota.

Virginia Man Indicted For Allegedly Embezzling $166K; Transferred Fuds To His Fire Chief Son

Michael Owen Hale, 59, of Speedwell, Virginia has been indicted on charges he embezzled $166,000 from The Paper Clip, an office supply store were he had been employed. Hale, who is also the Speedwell Volunteer Fire Department chief, then transferring more than $170,000 into a joint account of, Jason Scott Hale, and Joy Elisabeth Turner, his son and daughter-in-law, of Virginia Beach, according to court filings. Authorities allege that over a nearly 3 year period, from 2008 until 2011, Hale wrote company checks to himself and deposited the proceeds into his own account. He has been indicted on felony embezzlement and money laundering charges.

Read the story here and here.

Connecticut Man Accused Of Embezzling $100K From Mobile Home Park He Managed

Ken Sherbacow, 51, believed to be from Avon, Connecticut, has been arrested and charged with embezzling at least $100,000 from Rivermead Inc., a mobile home park based in East Hartford that he had been employed as manager. According to authorities, Sherbacow skimmed money from the business for at least 11 years, dating back as far as 1999, by creating phony invoices and paying for personal expenses with company funds. He was fired last December when the misappropriations came to light after new owners took over the business, according to media reports. Developing... Read the story here.

2 Former Execs Of Pennsylvania Charter School Charged With Embezzling $522K

Hugh C. Clark, 64, of Philadelphia and Ina M. Walker, 58, also of Philadelphia, have been indicted on charges alleging they embezzled some $522,000 from the New Media Technology Charter School in Germantown where they had served as board president and CEO, respectively. According to authorities, Clark and Walker systematically siphoned monies from the charter school to Lotus Academy, a private school they controlled that also housed New Media Charter School operations. They are also accused of financing their other enterprises with the funds, including a restaurant, health food store and web design firm.

Read the story here and here.

Manager At Texas Loan Company Suspected In $100K Embezzlement Scheme

Tomas Gutierrez or Tomar Gutierrez, believed to be in his mid 40s, of Brownsville, Texas, is charged with embezzling at least $100,000 from the Dollar Finance loan company where he had been employed as a supervisor. According to authorities, over a four year period, Gutierrez created phony loans and siphoned funds from auto repossessions. When confronted by investigators, Gutierrez reportedly confessed to the thefts.

Developing...

Read the story here.

Upstate New York Office Manager Charged With Embezzling $600K From Medical Office

Nancy Phillips, 39, of Herkimer, New York, has been charged with embezzling some $600,000 from Mohawk Valley Urology where she had been employed as office manager. According to authorities, Phillips began writing unauthorized checks to herself in November 2005. She is also accused of using the medical practice's business credit card for personal purchases. Phillips' embezzlement continued for five years until November last year. She had been a 10 year employee of the business. According to Oneida County ADA, Bernard Hyman, who is quoted in the Little Falls Times: “There is certainly some correlation between the economy and property thefts like this, but I’m not ready to draw the conclusion that the economy is causing these crimes to increase....a certain level of greed is involved in these crimes, and sometimes people just have the urge to live beyond their means.” Read the story here. We note that the last major embezzlement at a urology practice was when Beverly Morgan, of Collinsville, Mississippi, has pleaded guilty to charges she embezzled nearly $1 million from Urology Clinic of Meridian early last year.

Former Drake University Employee in Iowa Charged With Embezzling More Than $470K

Robert Alex Harlan, 49, has been charged with with five counts of first-degree theft in connection with the embezzlement of more than $470,000 from Drake University in Des Moines, Iowa, where he had been employed as director of student accounts for the past 20 years. According to authorities, Harlan's allegedly misappropriations date back to 2004 and continued until this past March. According to a statement from the university, "University accounting records had been manipulated to allow institutional funds to be converted to an employee's personal use."

Developing...

Read the story here, here and here.

Update (4/20/11): Two audits last year initially missed the embezzlement at Drake University. Read the story here.

Update (4/21/11): Loss put at $600K. Read the story here.

Update (9/27/11): Harlan, pleaded guilty to one felony count of embezzlement of more than $10,000.  He faces up to 10 years in prison.

Update (11/8/11): Harlan has been sentenced to up to 10 years in prison.

Ohio Businessman Pleads Guilty To Embezzling $120K From Employee Paychecks Meant For 401(K) Plans

Cliff A. Gallatin, 56, of Dublin, Ohio, has pleaded guilty to one felony count admitting he embezzled some $120,000 from employee paychecks - funds that were meant to be deposited into their respective 401(K) retirement plans - at American Systems Consulting, Inc., the company he owns and manages. Prosecutors alleged that Gallatin skimmed from the company retirement plan since it was established in 2003. A civil action was brought against the company, Gallatin and his wife, Loree O. Gallatin, 55, in January 2008 by the US Department of Labor in which he was ordered to pay restitution to his victim-employees. In the criminal case, Gallatin faces up to 5 years in prison, plus fines.

Read the story here.

Read the DOL's announcements here and here.

California, Michigan & Pennsylvania Top 1st Quarter 2011 For Major Embezzlement Cases; Vermont Gets Dishonorable Mention

An analysis conducted by Marquet International of major embezzlement cases discovered in the first quarter of 2011 reveals that California, Michigan and Pennsylvania top the list with the highest number of cases, at 10, 8 and 8 new incidents, respectively. Those included are cases where an employee misappropriated at least $100,000 from his or her employer. California has historically topped the list, along with other large states such as New York, Florida, Texas and Illinois. Dishonorable mention goes to tiny Vermont, which had three new major embezzlement cases. On a relatively size basis, Vermont has had more than its unfair share of employee theft cases. In fact, these three build upon the 7 major cases Vermont experienced in 2010. The problem seems to be so dire in the Green Mountain State that the state auditor put forth a plan last month to enact better controls at state agencies and municipalities, which have been hard hit. It is unclear why a state like Vermont has had a disproportionate number of major employee thefts. One small business owner based in Vermont explained to me that "people up here generally tend to be more trusting and believe that people will do what they are supposed to do and not do what they are not supposed to do. As a result, a lot of the checks and balances that that might seem like common sense don't get put in place until after someone gets caught taking advantage of the situation." It always comes down to the level of business controls in place... Christopher T. Marquet, CEO, Marquet International, Ltd.

California Woman Charged With Embezzling $180K From Doctor's Office

Stephanie Morgan of Oceanside, California and believed to be in her early 40s, has been charged with embezzling more than $180,000 from the medical offices of Dr. Julia Aspiras, where she had been employed as office manager. Over as much as a 3 year period, beginning in 2008 when she was hired, Morgan allegedly wrote unauthorized checks and used the practice credit card for her own benefit. She may also have stolen cash receipts, according to Dr. Aspiras. Morgan is the wife of US Marine Gunnery Sergeant Mitchell Morgan based at Camp Pendleton. Sgt. Morgan has been charged with receiving stolen goods. Police investigators reportedly found a number of apparent recent purchases at the Morgan home, including four flatscreen TVs, two dirt bikes, a laptop, a Ford Mustang, a Chevrolet Tahoe and new appliances. Stephanie Morgan reportedly has a prior criminal record in Texas.

Read the story here.

Michigan Bank Employee Charged With Embezzling $704K

Dianna Kay DeLawter, 49, of Manchester, Michigan, has been charged with embezzling some $704,000 from the Key Bank branch in Chelsea, where she had been employed. According to authorities, over a period of 10 years, beginning in May 2001, DeLawter systematically siphoned funds from the bank. A bank spokesman described DeLawter has "having problems." Details are scant at this time.

Developing...

Read the story here .

Nebraska Woman Gets Probation After Embezzling $136K

Ariel Rivera, 28, of Lincoln, Nebraska has been sentenced to five years probation for embezzling $136,000 from Christensen Audiology & Hearing Aid Center where she had been employed as office manager and chief financial officer. Rivera is reportedly the daughter of Roy Christensen, the owner of the business. Rivera, who pleaded guilty to the charge of theft by deception, apparently wrote and forged unauthorized checks to herself from company accounts. Rivera was arrested last May. Her scheme spanned a two year period, from March 2008 to March 2010. Rivera has also been sued in civil court by the company to recover the monies she stole, which came to a grand total of totaled $136,797.67, which she has been ordered to repay. Read the story here, here and here.

Pretty light sentence, IMHO ...

The Top 10 Embezzlement Cases In Modern US History

Marquet International conducted an analysis of the largest embezzlement cases in modern US history (since 1900). To do so we converted the amount misappropriated into 2010 dollars, using the Consumer Price Index comparison with the median year the scheme was active. We came up with the following list (perpetrator; actual amount in parenthesis, victim organization; and year scheme was discovered):

• Yasuyoshi Kato; $132 million ($90M); Day-Lee Foods, Inc.; 1997



• Gilbert Beesemyer; $100 million ($7.7M); Guaranty B&L Assoc.; 1930



• Ricardo Carrasco; $88.3 million ($66M); BankBoston; 1998



• John F. Doorly; $70.5 million ($58.2M); Tenens Corp/Ayer estate; 2006



• Ausaf U. Siddiqui; $69 million ($65.6M); Fry’s Electronics; 2008



• L. Ben Lewis; $64 million ($21.3M); Wells Fargo Bank; 1981



• Melissa G. King; $47.6 million ($42.6M); Sandhogs’ Union Local 147; 2009



• William S. Deloach; $49 million ($36.6M); PBS&J Corp.; 2005



• Sujata Sachdeva; $40.9 million ($34.5M); Koss Corp.; 2009



• Minnie Mangum; $35.7 million ($2.9M); Commonwealth B&L Assoc.; 1955

Note that half of these cases have occurred in the past decade. We will be putting these together with their stories as a separate article. There are many dishonorable mentions not included here. My guess is that this list represents the largest employee thefts in ALL of American history, but due to the paucity of information available prior to 1900, we did not find any worthy of inclusion. Please let us know if you have any cases for consideration for this "hall of shame."

Read the whole article here.

Montana Bookkeeper Sentenced For Embezzling $222K

Kellie Mae Henderson, 36, of Sun River, Montana, has been sentenced to 33 months in prison for embezzling some $222,000 from Sound Air, Inc., where she had been employed as a bookkeeper. According to authorities, Henderson embezzled from the company over a 4 1/2 year period, from September 2005 until April 2010. Henderson's scheme involved issuing company checks to pay for her personal expenses. She was also alleged to have altered the company books and records in an effort to conceal the embezzlement. A total of $221,804.91 in fraudulent checks were issued to Henderson's benefit. She was also ordered to pay full restitution. Read the story here, here and here.

Nigerian Man Under Investigation For Allegedly Embezzling $522K From Wisconsin-Based Health Concern

A 52 year old unnamed Nigerian man from Brown Deer, Wisconsin, is under investigation for allegedly embezzling $522,479 from Milwaukee Health Services Inc., where he had been employed as an accounts payable clerk. According to authorities, the suspect wrote at least 79 fraudulent checks to phony vendors whose names were similar to legitimate ones, and ultimately deposited them into his own accounts. The scheme reportedly spanned more than 2 years from 2008 until late September 2010. The suspect has yet to be arrested and charged, but investigators are looking to present a case to the District Attorney's office in the immediate future. Read the story here.

California Woman On Trial For Embezzling $750K

Jennifer Joann Zito, 37, of Chatsworth, California is currently on trial in Ventura County Superior Court for allegedly embezzling more than $750,000 from Simi Valley Cycles Inc., where she had been employed as a bookkeeper. Prosecutors have charged her with 16 felony counts of embezzlement, grand theft, and filing false tax returns. She is alleged to have misappropriated the funds over a period of at least 5 years, from 2001 until 2006. Zito is believed to have spent the stolen funds to support a lavish lifestyle, including the purchase of luxury vehicles, such as Porsche, BMW, a pickup truck, as well as six horses valued at $100,000, a speed boat and a custom horse trailer. 

Read the story here.

Update (4/25/11): Zito was found guilty by a jury on 18 felony counts for embezzling more than $750,000 from Simi Valley Cycles. Specifically, the jury found Zito guilty on six counts of embezzlement, seven counts of grand theft, and five counts of filing false income tax returns. She was found not guilty on identity theft and forgery counts. Zito faces up to 18 years in prison.

Update (6/6/11): Zito has been sentenced to 18 years in state prison for what is now believed to be $850,000 worth in cash and vehicles from Simi Valley Cycles Inc.  Zito was also ordered to pay $1,473,483 in restitution and $186,464 to the California Franchise Tax Board for back taxes on the ill-gotten gains.

FEMA Employee In Maryland Charged With Embezzling $149K From Agency

Sheila Ann Howard, 55, of Capital Heights, Maryland, has been charged with embezzling more than $149,000 from the Federal Emergency Management Agency (FEMA) where she had been employed as a human resources specialist handling special payroll payments. According to prosecutors, Howard processed at least 26 payroll payments in the names of former or current employees that were deposited into accounts she controlled. The scheme which netted a reported total of $149,459.23, spanned a 15 month period beginning in December 2009. Howard had been employed by the agency since 1990. Read the story here, here and here. Read the DOJ announcement here.

Illiinois Man Alleged To Have Embezzled $1.5 Million From Bank

Elvir Sinikovic, 33, of Elk Grove Village, Illinois, has been arrested and charged with embezzling funds from the Chicago Title and Trust Company where he had been employed as an escrow administrator. According to authorities, Sinikovic caused an electronic funds transfer of $50,000 to a construction account that was then converted to he and his wife's own benefit in cash and for the purchase real estate. FBI investigators believe he may have caused more than 100 similar such fraudulent transactions. His wife has not been charged at this time. Sinikovic faces one felony count of embezzlement of bank funds.

Developing...

Read the story here and here.

Read the DOJ announcement here.

North Carolina Man Indicted On Charges He Allegedly Stole More Than $400K From Bank ATMs He Serviced

John Michael Feltovic, 43, of Fayetteville, North Carolina has been indicted on charges he embezzled more than $400,000 from four area banks whose ATMs he serviced through his employer, Colorado-based Pendum, LLC. According to prosecutors, Feltovic pocketed some $300,000 in cash at 17 area ATMs for BB&T, First Citizens and two subsidiaries of U.S. Bank, which he was entrusted to service and restock. He is also charged with stealing $104,000 from one of the bank's vaults. Feltovic's schemes reportedly began in December 2010 and continued until this February.

Read the story here.

Maryland Woman Indicted For Allegedly Embezzling $275K

Sandra Iris Klaus, 46, of Hampstead, Maryland, has been indicted on charges she embezzled more than $275,000 from an unnamed roofing and sheet metal company based in Westminster, Maryland where she had been employed as an administrative assistant and bookkeeper. Specifically, Klaus was indicted on 12 counts of mail fraud for orchestrated a scheme that spanned more than four years, from January 2007 until March 23, 2011, whereby she caused company funds to pay for her personal credit cards in fraudulent EFTs, issued payroll checks to bogus employees which she deposited into her own accounts and and endorsed receivable checks payable to the company to herself. The indictment also seeks forfeiture of a total of $275,456.43. Research suggests that the victim company is Tri-County Roofing & Sheet Metal, Inc.

Read the story here.

Read the DOJ announcement here.

Update (2/10/12): Klaus pleaded guilty to mail fraud, aggravated identity theft, and filing a false tax return in connection with a scheme to embezzle what is now believed to be $313,000 from her employer, believed to be Tri-County Roofing & Sheet Metal, Inc. 

Georgia Woman Sentenced For Embezzling $350K

Clara June Allen, 40, of Clarkesville, Georgia, was sentenced today to 30 years, with only 3 years served in prison followed by 2 years of house arrest, for embezzling more than $350,000 from Mencom Corporation where she had been employed as a bookkeeper. According to authorities, Allen's thefts spanned about a four and a half year period, from October 2003 until March 2008, whereby she wrote checks from company coffers to a company co-owned by she and her husband called D&J Contracting. Allen's husband, Dale Allen, has also been charged with theft by taking in this case which has yet to be resolved. Clara June Allen, who was originally indicted in December 2009, is also alleged to have paid her personal credit card bills online with company funds and to have inflated her time cards in order to receive pay to which she was not entitled.

Read the story here and here.

Texas Woman Pleads Guilty To Embezzling $355K & Tax Evasion Charges

Misti D. Rieger, 50, of Fort Worth, Texas, pleaded guilty today to charges she embezzled more than $355,000 from Pharmacy Healthcare Solutions where she had been employed as an accounting supervisor. According to prosecutors, over a period of about 4 years, between 2003 and 2007, Rieger forged at least 87 company checks totalling $355,391, which she deposited into her own personal accounts. Rieger also pleaded guilty to tax evasion for her 2007 return filed jointly with her husband. She faces up to 5 years in prison, plus fines, back taxes and restitution, upon sentencing, which is scheduled for July 2011.

Read the story here.

Update (7/26/11): Rieger was sentenced to 18 months in prison. 

Washington State Woman Charged With Embezzling Nearly $400K

Angela Jones Ver Hoeven, 46, of Tulalip, Washington, has been charged with embezzling some $396,000 from the Tulalip Tribe's Liquor Store and Smoke Shop where she had been employed as a clerk/cashier. According to authorities, Jones Ver Hoeven routinely would steal cash from sales on muliple cartons of cigarettes purchased, ringing up fewer than sold and pocketing as much as $800 a day. The scheme spanned a reported 2 1/2 year period from January 2008 through August of 2010. She is reported to have lost a significant amount of money while gambling at the Tulalip tribe's Quil Ceda Creek Casino.

Read the story here, here and here.

Former Bookkeeper For Restaurants Charged With Embezzling $186K

Shawn M. Dragman, 52, of Glenview, Illinois, has been charged with embezzling more than $186,000 from family owned Hackney's Restaurants where she had been employed as a bookkeeper and formerly as a waitress. According to authorities, beginning in July 2008 and continuing for 2 years, Dragman took cash receipts from the restaurant and deposited restaurant checks into accounts in the name of her and her husband, David J. Dragman, 64, to cover the shortfall. Shawn Dragman, who was arrested on March 17, had been employed by the restaurant chain for about 25 years, beginning as a waitress. David Dragman has apparently not been charged at this time.

Read the story here, here and here.

Update: California Woman Pleads Guilty To Embezzling $134K From Boys & Girls Club - Spends Stolen Money On Breast Implants

Lynette Rojas, 37, of La Habra, California, pleaded guilty to charges she embezzled $134,540 from the La Habra Boys and Girls Club where she had been employed as executive assistant and bookkeeper. According to authorities, Rojas stole more than $109,000 in cash receipts and issued herself 2 dozen unauthorized paychecks totaling nearly $25,000. Rojas reportedly used some of the stolen funds to pay for breast implants. She plead guilty to one felony count of grand theft by embezzlement, and 24 felony counts of computer access fraud. Meanwhile the Boys and Girls Club was forced to lay off staff and cut programs to cover the shortfall.

Read FraudTalk's earlier post on this story here.

Read the story here and here.

Update (4/18/11): Rojas has been sentenced to 3 years in prison.

Former Vassar College Employee & Wife Arrested For Allegedly Embezzling Nearly $2 Million

Arthur H. Fisher, 44, and his wife, Jennifer Fisher, 38, both of Ossining, New York, were arrested and charged in Dutchess County today with embezzling nearly $2 million from Vassar College in Poughkeepsie. According to authorities, Arthur Fisher, who had been employed by the college as project manager from 2005 until 2010, orchestrated a scheme involving a phony construction company he and his wife set up with a fraudulent bank account, into which college funds were deposited. They have both been charged with first-degree grand larceny, presumably because prosecutors believe Jennifer Fisher participated and/or benefited from the scheme to which she had knowledge. Poughkeepsie police executed a search warrant at the Fisher home in Ossining where various luxury items were seized per court order, including four late model BMWs, a Ford F150 truck, three Rolex watches , 10 unregistered handguns, one .223 caliber military style rifle, along with various fraudulent law enforcement badges from the NYPD, FBI, ATF and the DEA, among other items. Details are still sketchy as to the specifics of the alleged embezzlement, however, the seizure of the weapons and false law enforcement identification suggests that there may have also been a concern about threats and potential violence.

Read the story here, here, here and here.

Update (5/21/11): A Dutchess County Grand Jury has handed down formal indictments of both Arthur and Jennifer Fisher. The theft now stands at $2.5 million after accounting for an additional $600,000 stolen through falsified invoices and a second fictitious company called Good Shepherd Construction. Another individual, Christopher DeSanto, 31, of Ossining, New York, allegedly was involved with the Fishers' scheme and has been charged in connection with that part of the theft. The other fake company was known as C&R Construction.

Read an update on the story here.

Washington State Man Sentenced For Embezzling $440K From Bank

Edgar Hugh Kelly, 37, of Tacoma, Washington, was sentenced to 33 months in prison for embezzling some $440,000 from the KBR Credit Union where he had been employed as a teller and an office manager. According to authorities, Kelly engaged in an "elaborate scheme" to misappropriate money from the credit union, which serves employees of Simpson Construction, over a period of "several years." The scheme reportedly involved strategically timed fund transfers and altered financial documents. Kelly's thefts were discovered after he submitted false documents to auditors. Kelly, who was originally charged in October 2010, plead guilty last November theft from a lending, credit, or insurance institution.

Read the story here and here.

Update: Kelly was sentenced to 33 months in prison.

California Woman Accused Of Embezzling $118K

Laura M. Ilharreguy, 46, of Placentia, California, has been charged with embezzling more than $118,000 from an unnamed information-technology and office-equipment business in Yorba Linda where she had been employed. According to authorities, Ilharreguy used a company credit card to make online purchased for her own benefit. Research suggests that the victim company is Evrex Corporation. Details of the embezzlement are scant at this time...

Read the story here.

California Couple Arrested For Embezzling $100K From Jaycees

Eric Wayne Stroschein, 49, and Judith Ann Stroschein, 46, both of Blythe, California, have been arrested and charged with embezzling more than $100,000 from the Blythe Jaycees where Eric had served as treasurer. According to authorities, Eric Stroschein made withdrawals from the Jaycees account and deposited the monies into his own and his wife's accounts. It is unclear how long the thefts have been going on. However, the police were notified last July when the Jaycees' president discovered its account virtually depleted. The couple own a business called Studio 10, a hair and nail salon where they were arrested Wednesday. The two have been charged with felony embezzlement and conspiracy.

We note that Studio 10 had its grand opening this past November. Gee, I wonder where the seed money for the business came from? What is in the water in Blythe, California? This is the second case this week involving a major embezzlement by a resident of that town (see the Lathan Willams case below and here).

Read the story here and here.

Calfornia Man Accused Of Embezzling $250K From Public Cemetery

Lathan Duane Williams, 47, of Blythe, California, has been accused of embezzling more than $250,000 from the Palo Verde Cemetery District, where he had served as manager for the Blythe Cemetery. According to authorities, Williams siphoned funds from customers who made pre-payments for plots as well as unauthorized payment for extended vacation and unclaimed sick time and other fraudulent reimbursement schemes. Prosecutors claim that Williams began misappropriating from the cemetery in 2003 and continued until August 2008. Williams had been employed as manager of the facility since 1993.

Read the story here and here.

Former Controller For California Company Charged With Embezzling $317K

Michael Thomas Reid, 44, of Stockton, California, has been charged with embezzling some $317,000 from Fuel Delivery Services, Inc., a subsidiary of Van De Pol Enterprises, where he had served as company controller. According to authorities, over the course of about 5 years, from 2006 until January 2011, Reid wrote checks to himself totaling about $139,000 and made about $178,000 in personal charges on company credit cards.

Read the story here and here.

Missouri Woman Indicted For Allegedly Embezzling $170K

Tammeria L. Patrick, 48, of Florissant, Missouri, has been indicted on federal charges she embezzled as much as $170,000 from Urban Investigation Security where she had been employed as the payroll and accounts receivables manager. According to authorities, Patrick paid herself extra salary by manipulating the payroll, took health insurance premiums from other employees and opened a business credit card account which she used for her own benefit. Her scheme spanned about a year and a half, from January 2008 until July 2009. Patrick faces up to 20 years in prison if convicted on the one count of wire fraud, plus fines and restitution.

Read the story here and here. Read the DOJ announcement here.

Update (10/26/11): Patrick has been sentenced to 18 months in prison and ordered to pay $161,000 in restitution.  She plead guilty this past June to one felony count of wire fraud.  According to reports, Patrick wrote more than $157,000 in company checks to herself, plus directed several thousand dollars in insurance premiums to herself.

Missouri Woman Pleads Guilty To Embezzling More Than $2 Million

Karen A. Backues, 45, of Platte City, Missouri, has pleaded guilty to charges she embezzled more than $2 million from GBA Master Series, Inc., of Overland Park, Kansas, where she had been employed as chief financial officer. According to authorities, Backues forged company checks to the tune of $220,000 in a nine month period in 2009 which were deposited into a joint account for she and her husband. Further investigation revealed that Backues has misappropriated more than $2 million, according to reports. Backues and her husband, Bryan K. Keil, 44, own two local liquor stores called Olive or Twist Liquor Stores. Keil has not been charged in the case. Karen Backues was originally charged in February 2010 and pleaded guilty today to 3 counts of embezzlement and 3 counts of forgery.

Read the story here and here.

Update (6/2/11): Backues, now 47, was sentenced to 15 years in prison. Backues reportedly has a prior conviction for embezzlement in 1997.

West Virginia Woman Charged With Embezzling $140K From Law Firm

Lisa R. Buttermore, 40, of Morgantown, West Virginia, has pleaded guilty to embezzling more than $140,000 from the law firm of Gianola, Barnum, Wigal & London, where she had been employed. According to prosecutors, Buttermore misappropriated the monies over a period of about two years, between 2008 and 2010. She was originally arrested and charged last July.

Details are scanty...

Read the story here.

We note the last time a Morgantown citizen was involved in a major embezzlement was the case of Amy Marie Mick, now 33, who pleaded guilty to embezzling some $130,000 from the Morgantown POPARC and was sentenced to 5 years in jail.

Update (6/1/11): Buttermore was sentenced to five years' probation and suspended a 3 to 30 year prison sentence.