Northern California Woman Charged With Embezzling $210K From Interior Design Firm

Sanaz Banihashemi, 30, of Novato, California, has been charged with embezzling about $210,000 from Kaleidoscope Designs Inc., a local interior design firm where she had been employed as a bookkeeper and office manager.  According to authorities, over a period of nearly 3 years, beginning in October 2007, Banihashemi paid herself extra paychecks by manipulating the company's payroll system.  She has been charged with embezzlement, forgery and fraud. 

Read the story here.

Wisconsin Man Sentenced For Embezzling Nearly $200K From Local Parks & Rec Dept.

James D. Ash, 47, of Waupaca, Wisconsin, was sentenced to three years in prison for embezzling $150,772.87 from the Waupaca Parks and Recreation Department where he had been employed as director.  According to authorities, over a period of about 5 years, from 2006 through 2010, Ash wrote 167 checks totaling $150,772.87 in his wife's name drawn from the "Waupaca Recreation Participation Account" which he used for his own purposes.  Ash was also accused of fraudulent reimbursements totaling nearly $41,000 of which less than $1,000 was actually spent for the department.  Ash, who plead no contest to the charges in April, had been a 20 year employee of the department until May 2010 when he was terminated.

Read the story here, here and here.

Maine Woman Sentenced For Embezzling $750K From Bank

Christina Torres-York, 40, of Warren, Maine, has been sentenced to 33 months in prison for embezzling $750,000 from the Camden National Bank where she had been employed.  Torres-York was also charged with embezzling about $60,000 from the Maine Contractors and Builders Alliance, for which she had served as treasurer.  She was ordered to pay restitution of of $595,308 to Camden National Bank and $29,705 to the Maine Contractors and Builders Alliance.  According to prosecutors, over a period of at least 2 years, from 2007 until 2009, Torres-York executed a series of unauthorized transactions, including withdrawals from customer accounts and lines of credit for her own purposes.  Specifically, she is reported to have made numerous withdrawals from five bank customers' lines of credit totalling $749,402.23.  In January 2011, Torres-York, formerly a 20 year employee of the bank, plead guilty to one count of embezzlement and misapplication of funds.


Read the story here, here and here.

Kansas Woman Charged With Embezzling $100K From Court

Fabiola E. Cruz, 35, of Shawnee, Kansas, has been charged with embezzling at least $100,000 from the Merriam Municipal Court where she had been employed as the lead clerk.  According to authorities, over a period of about 2 years, from 2008 to 2010, Cruz siphoned monies from the court from cash received from fines or levies. She has been charged with one count of theft of more than $100,000 and four counts of a computer crime.  The thefts were discovered after the court did an audit of its cash management proceedures.  Investigators are still looking into the matter and it is reported possible that the loss could be greater.

Read the story here and here.

Utah Man Pleads Guilty To Embezzling Nearly $1 Million From Morgan County

Garth B. Day, 41, of Elwood, Utah, has plead guilty to charges he embezzled nearly $1 million from Morgan County where he had served as Council Administrator.  According to prosecutors, Day transferred county funds to accounts he controlled over a period of more than two years, from June 2008 to August 4, 2010.  Day has reportedly paid some of the money back, but still owes more than $416,000 in restitution.

Read the story here and here.

Update (10/26/11): Day, now 42, has been sentenced to 48 months in prison and ordered to pay $416,222 in restitution.

California Woman Charged With Embezzling $185K From Concrete Company

Terri Alexander, 49, of Bakersfield, California, has been arrested and charged with embezzling more than $185,000 from Terry Bedford Concrete Construction Inc., where she had been employed.  According to authorities, Alexander, who was a trusted 20 year veteran of the firm, had been embezzling from the company for a two year period.  She has been charged with obtaining money by false pretenses, grand theft (embezzlement), using a fictitious name on a financial statement and personate to get money and or property.

Read the story here and here.

Pennsylvania Woman Charged With Embezzling $389K From Municipality - Blames Mental Health Issues & Gambling Problem

Nancy J. Brown, 63, of Springfield Township, Pennsylvania, has been charged with embezzling $389,000 from the township where she had served as municipal secretary.  Brown sought treatment for mental health issues and an apparent gambling problem in lieu of a trial.  However, the court rejected the plea.  Brown allegedly wrote more than 800 checks to herself from municipal payroll account coffers over a period of about 8 years, from 2002 until June 2010.  She has been charged with 11 felonies, including one count each of forgery and receiving stolen property, and nine counts of theft by unlawful taking.  Brown was reportedly fired from her municipal position in June 2010 after the financial discrepancies came to light.

Read the story here and here.

Update (7/5/11): Brown pleaded guilty today to nine counts of theft by unlawful taking for embezzling some $389,000 from Springfield Township, where she had served as municipal secretary.  Brown, who was a 19 year veteran employee of the municipality, reportedly spent much of the ill-gotten gains at various casinos.

Update (8/17/11): Brown was sentenced to 6 to 18 years in prison. 

Former Citigroup Exec Charged With Embezzling $19.2 Million From Bank

Gary Foster, 35, of Englewood Cliffs, New Jersey, was arrested yesterday on charges he embezzled about $19.2 million from Citigroup, where he had been employed as a vice president.  According to authorities, over a period of 1 1/2 years, from May 2009 to December 2010, Foster transferred the funds from Citigroup's debt-adjustment and interest-expense accounts to a cash account and then wired the funds to his own personal bank account at JPMorgan Chase.  An internal audit by the bank's treasury department discovered the apparent misappropriation and Citigroup immediately contacted law enforcement officials, according to reports.  Prosecutors dubbed the theft "the ultimate inside job."  Foster has plead not guilty to the bank fraud charges, which carry a 30-year maximum sentence.

Read the story here, here and here.

Update (9/6/11): Foster pleaded guilty today to charges he embezzled what is now believed to be $22 million from Citibank.  Foster's scheme spanned nearly 8 years, beginning in September 2003, according to prosecutors.

Update (6/30/12): Foster was sentenced to 97 months in prison for embezzling what is now understood to be nearly $23 million from Citibank.

Mother & Son Arrested For Embezzling $16 Million From New York City Textile Companies

Judy Del Galdo, 66, of Staten Island, New York and Sayreville, New Jersey and Joseph Del Galdo, 46, now of Buford, Georgia, but formerly of Chester, New Jersey, have been arrested for embezzling about $16 million from two New York City textile businesses owned by the same family, Hi-Fashion Fabrics Inc. and Timeless Treasures Fabrics Inc., where she had been employed as a bookkeeper.  According to prosecutors, Judy Del Galdo siphoned the funds from the companies over a period of 7 years, beginning in 2003, by issuing "hundreds" of checks from the businesses to a dummy company she and her son created, Tea-Rific Beverage Inc.  The mother-son pair converted the funds for their own uses and reportedly lived extraordinary lavish lifestyles off of the ill-gotten gains.  In addition to hundreds of thousands spent on real estate and luxury automobiles, the two spent some of the stolen funds in the following manner, according to media accounts:

* $889,000 in mortgage and related payments on three properties
* $564,000 in credit-card payments
* $500,000 in flights on private jets
* $493,000 in cash withdrawals
* $458,000 in other travel and hotel expenses
* $368,000 in payments toward a million-dollar yacht
* $330,000 in payments for luxury suites and sponsorships at Madison Square Garden and the Meadowlands
* $166,000 in home-theater purchases
* $62,000 in private-school tuition
* $54,000 in Apple and iTunes purchases

Judy Del Galdo had been a 22 year employee of the companies and the thefts were only discovered after she retired in April of last year.

Read the story here and here.

Former Dental Assistant In California Sentenced For Embezzling $203K

Tiffany Lynae Lovell, 31, of Biggs, California, has been sentenced to 3 years in prison for embezzling $203,000 from the dentistry practice of Dr. Michael A. Passaglia in Yuba City where she had been employed as an office manager.  According to authorities, Lovell skimmed monies from the practice over a five year period, from 2005 through 2010.  Lovell reportedly used the ill-gotten gains to pay for personal luxury items, including jewelry and breast augmentation surgery.  Lovell had been an 8 year employee of the practice, where she was a problem employee, according to the dentist.  Lovell even filed a sexual harassment claim against Dr. Passaglia in an effort to pressure him to drop the embezzlement charges, according to media reports.  She blamed abuse as a child by her father and other men later in life, according to the reports.

Read the story here, here, and here.

Former Bookkeeper In Upstate New York Pleads Guilty To Embezzling $427K

Glenda Banko, 46, of Hamburg, New York, pleaded guilty to charges this week that she had embezzled $427,661 from Buffalo Rheumatology where she had been employed as a  billing manager.  Authorities alleged that over a span of about 7 years, from 2004 until April 2011, Banko skimmed cash receipts from patient payments to the medical office.  She reportedly began stealing from her employer of ten years after the State of New York ceased making disability payments to her son.  Banko, who pleaded guilty to one count of second-degree grand larceny, faces up to 15 years in prison upon sentencing which is scheduled for September 15, 2011.

Read the story here, here and here.

Fugitive Boston Mob Boss Nabbed In California After 16 Years On The Lam

James "Whitey Bulger," 82, was captured and arrested last night in Santa Monica, California where he had been living with his long-time girlfriend, Catherine Greig.  Bulger was once one of the world's most wanted men.  The former South Boston mob boss was wanted for his role in at least 19 murders.  The ruthless gangster was last confirmed to be in London in 2002.  Bulger had been on the lam since 1994.

Read the story here and here.

Missouri Woman Admits Embezzling $187K From Police Group Before She Dies Of Cancer

Lucille S. Elson, the former president of the Civilian Personnel Division of the St. Louis Metropolitan Police Department admitted that she embezzled at least $187,000 from the unit three weeks prior to her passing away from pancreatic cancer.  According to authorities, Elson wrote checks from the divison's accounts to pay for personal expenses over a 15 year period.  Elson reportedly admitted to forging the treasurer's signature and covered up the thefts.  Elson also admitted to using the unit's debit card for her own purposes, according to reports.  Elson was 70 years old when she passed away and was reported to be a big fan of the St. Louis Cardinals major league baseball team - known as "Mama Lucy" to other fans in the stands.

Read the story here.

New Jersey Woman Indicted For Alleged Embezzlement Of More Than $400K From Condo Association

Theresa Tierney, 59, of Oakhurst, New Jersey has been indicted on charges she embezzled more than $400,000 from the Strickland Farms Condominium Association in Freehold where she had served as property manager.  According to prosecutors, Tierney diverted association fees paid by members to an account she opened as sole signatory and then converted the funds to her own use.  Tierney was arrested in April 2011 after the misappropriations came to light when homeowners began receiving notice that they were delinquent in their payments.  Tierney has been indicted on felony charges of second-degree theft and second degree theft by failure to make required disposition of property.

Read the story here.

Former Bookkeeper in California Pleads Guilty To Embezzling $382K From Real Estate Developer

Shalena P. Leggett, 37, of Vacaville, California, pleaded guilty to charges she embezzled more than $382,000 from an unnamed real estate development compnay for which she had been employed as a bookkeeper.  According to authorities, Leggett wired the funds out of her employer's accounts into an account she controlled, over a period of about 1 1/2 years, from March 2008 until October 2009.  Leggett pleaded guilty to two counts of wire fraud and is scheduled to be sentenced on September 7, 2011.

Read the story here and here.

Update (10/4/11): Leggett was sentenced to 14 months in federal prison for embezzling what is now reported to be more than $450,000, from an undisclosed real estate firm. 

Former Accountant In California Sentenced For Embezzling $1.4 Million

Kathy Stamps, 39, of Rancho Cucamonga, California, has been sentenced to 4 years in prison for embezzling $1.4 million from the US Department of Agriculture.  According to authorities, Stamps, who worked as an accountant in the Angeles National Forest office in Arcadia, California, manipulated internal records to receive six tax refund checks over a period of 2 1/2 years, from early 2002 until October 2004, totalling $1,421,390.39.  She reportedly used the ill-gotten gains to pay for personal luxury items and expenses, including her mortgage and plastic surgery.  Stamps, who was originally charged in 2008, was also ordered to pay restitution.

Read the story here, here and here.

Read the DOJ announcement of her indictment here.

Michigan Woman Charged With Embezzing Nearly $250K

Christine Marie Desonia, 45, of Deerfield Township, Michigan, has been charged with embezzling nearly $250,000 from a local manufacturing company, Thompson I.G., where she had been employed as an office manager.  According to authorities, Desonia siphoned the money over a two year period from 2007 to 2009 after being passed up for a promotion.  Desonia was the subject of a missing persons search in May 2009, but was found several days later.

Read the story here and here.

Montana Man Charged With Embezzling $383K From Casinos

Scott B. Peterson, believed to be in his early 40s, of Missoula, Montana, has been charged with embezzling some $383,000 from the Lucky Diamond casinos in Missoula and Billings where he had been employed as a manager.  According to prosecutors, Peterson confessed to the thefts which reportedly spanned a four and a half year period, from January 2006 until July 2010.  Peterson has been charged with three counts of felony theft by embezzlement, one count of felony deceptive practices and one count of felony evidence tampering.

Read the story here.

New Jersey Woman Indicted For Allegedly Embezzling $421K From Record Company

Sharanda Houser, 35, of Somerset, New Jersey, has been indicted on charges she allegedly embezzled about $421,000 from New York City-based Roadrunner Records where she had been employed as a payroll manager.  According to prosecutors, Houser made fraudulent reimbursements in the payroll system and electronically transferred the funds at least 130 times to her own account over a period of six years.  Houser has been indicted on New York state charges of Grand Larceny in the Second Degree and Falsifying Business Records in the First Degree, both felonies.  Media reports indicate Houser was previously convicted of embezzling $13,000 from an employer in Virginia in 1999.  Houser has plead not guilty to the charges.  Roadrunner has handled many famous bands and musicians, including The Steve Miller Band, Megadeth and others.

Read the story here and here.

California Woman Sentenced For Embezzling $365K From Dentist Office

Kim Herman, 52, of Santa Barbara, California, was sentenced to 5 years in prison for embezzling $365,000 from the offices of Dr. Marc Alexander, a prosthetic and cosmetic dentist, where she had been employed for nine years.  According to authorities, Herman wrote fraudulent checks to herself over a 7 year period and covered up the thefts by manipulating the practices records.  Herman plead contest to grand theft by embezzlement with excessive loss.  The checks she wrote herself amounted to about $4,000 per month.

Read the story here.

Massachusetts Woman Indicted For Embezzling $126K From Aids Charity

Valerie Tebbetts, 54, formerly of Dorchester, Massachusetts, has been indicted on charges alleging she embezzled more than $126,000 from The Living Center, a local HIV/AIDS charity group for which she had served as the executive director.  According to prosecutors, over a period of more than 2 years, from September 2008 to November 2010, Tebbetts issued numerous checks to pay for personal expenses, including her rent as well as made numerous cash withdrawals from the charity's accounts.  Tebbetts has been indicted on three counts of larceny by embezzlement over $250 and false entries in corporate books.

Read the story here, here and here.

Update (12/15/11): Tebbetts pleaded guilty to three counts of embezzlement and one charge of making false entries in corporate books and was sentenced to five years probation.  She was also ordered to pay restitution to the Boston Living Center and receiving counseling for her reported gambling addiction. 

South Dakota Man Charged With Embezzling $400K

Bradley Whitsell, 45, of Sioux Falls, South Dakota, has been charged with embezzling $392,111 from SDN Communications where he had been employed as Vice President of Operations.  According to prosecutors, Whitsell began siphoning funds from the company in 2000 and used his oversight position to hide the thefts.  He has plead not guilty to the charges.  Over the next ten years, Whitsell allegedly abused company credit cards, issued fraudulent company checks and received fraudulent reimbursement for expenses to pay for personal expenses and luxuries.

Read the story here, here and here.

Update (11/15/11): Whitsell, now 46, has been sentnced to 2 years in federal prison and ordered to pay restitution in the amount of $476,184.77, which is the amount he stole, plus the cost of the forensic audit.  Whitsell plead guilty to one count of mail fraud in August.

Idaho Woman Sentenced In $1.3 Million Embezzlement Case

Connie A. Stills, 56, of Middleton, Idaho, has been sentenced to 41 months in prison for embezzling $1.3 million from the Port of Hope Centers Inc., a non-profit drug and alcohol treatment concern where she had been employed as a bookkeeper.  According to prosecutors, Stills siphoned the funds over a period of four year, from 2004 until 2008, by writing checks from the non-profit's coffers to pay for her credit card bills and other personal expenses.  She plead guilty last September to felony counts of filing a false tax return and mail fraud.  Stills was also ordered to pay $1.7 million in restitution.  Still's daughter, Bobbie A. George, 31, also of Middleton, plead guilty for her involvement in the theft of some $177,000 from the agency and was sentenced to five years probation and ordered to pay $233,024 in restitution.  Stills had been an employee of the agency for nearly 20 years, since 1991.

Read the story here and here.

Read the DOJ announcement here.

Wisconsin Woman Sentenced In $300K Emberzzlement Case

Kham Sisaleumsak, 45, of Waukesha, Wisconsin, has been sentenced to 5 years in prison for embezzling more than $300,000 from the Waukesha County's Aging and Disability Resource Center where she had been employed as an account clerk.  According to authorities, Sisaleumsak systematically misappropriated funds from 12 different nutrition sites run by the County's resource center over a period of more than 6 years.  Sisaleumsak was accused of writing 278 checks totaling $303,053 between 2002 and 2009 from county coffers for her own benefit.  She was charged in February 2010 with 13 counts of theft from a business. 

Read the story here and here.

Massachusetts Woman Charged With Embezzling $110K From Bank

Jennifer Thurston, 39, of Cheshire, Massachusetts, has been charged with embezzling some $110,000 from TD Bank where she had been employed as a teller.  According to authorities, Thurston misappropriated the funds from February 1, 2008 through June 30, 2009.  Specifically, Thurston was charged with one count of embezzlement by a bank employee and larceny over $250, both felonies.  Details are scant at this time.

Developing...

Read the story here.

Update: Indiana Woman Pleads Not Guilty To $364K Church Embezzlement Charges

Beth Ann Boger, 44, of Garrett, Indiana, has pleaded not guilty to charges she embezzled more than $364,000 from the St. Joseph Catholic Church where she had served as bookkeeper.  According to authorities, over a nearly five year period, from  June 2004 to April 2009, Boger wrote checks from church coffers out to a business she owned called Accents By Beth and used the money for her own benefit.  Boger was indicted last month on six counts of felony wire fraud and four counts of felony tax evasion.

Read the story here.

See FraudTalk's earlier post on this story here.

Minnesota Woman Sentenced For Embezzling $100K From Iowa Company

Barbara Ann Paulson, 40, aka, Barbara Ann Krauth, of Waseca, Minnesota, was sentenced to 70 months in prison for embezzling more than $100,000 from an unnamed business based in Northwood, Iowa.  Paulson wrote fraudulent checks for her own benefit over a period of nearly 2 years, from January 2005 until October 2006.  She plead guilty in January to one count of making and passing a counterfeit check with the intent to deceive, one count of using a fraudulently obtained credit card and one count of aggravated identity theft.  Paulson was also ordered to pay $157,000 in restitution.

Read the story here.

Read the DOJ announcement here.

Minnesota Woman Accused Of Embezzling $217K From Utility

Susan Kay Thompson, 53, of Minnesota, has been charged with embezzling $217,581.13 from Minnesota Power, where she had been employed as director of customer service.  According to authorities, over a period of nine years, from 2000 to 2009, Thompson engaged in a fraudulent reimbursement scheme whereby expenses and credit card charges made were for personal rather than legitimate business expenses.  Thompson had been a 20 veteran of the company before she was suspended and subsequently resigned in late January 2010 after an internal audit revealed the apparent misappropriations, according to reports.

Read the story here, here and here.

Hat tip: FraudTalk reader George

2 North Carolina Men Sentenced For Embezzling $2.4 Million From Real Estate Services Firm's Escrow Account

Jerry Holmes, 64, of Matthews, North Carolina and R. Scott Pace, 38, of Charlotte, North Carolina, were each sentenced to 33 months in prison for embezzling $2.4 million from Settlement Source LLC, a real estate services firm they co-owned.  According to authorities, over a period of almost three years, from November 2005 until July 2008, Holmes & Pace siphoned the funds from the firm's escrow account.  They reportedly spent the monies on real estate, personal loans, entertainment and other personal expenses.  Holmes & Pace, who pleaded guilty in May 2010, were also ordered to each pay $1.9 million in restitution.

Read the story here and here.

Connecticut Man Pleads Guilty To $1 Million Bank Embezzlement

Philip J. Mongillo, 51, of Westbrook, Connecticut, pleaded guilty to one count of bank fraud in connection with his alleged embezzlement of more than $1 million from Dime Bank, where he had been employed as assistant vice president and technology officer.  According to authorities, over a nine year period, from September 2001 until November 2010, Mongillo created and used a phony company to issue fraudulent invoices to the bank, totalling $1,029,050.  Mongillo is due to be sentenced on September 2 and faces up to 30 years in prison, plus restution.

Read the story here and here.

Update (9/7/11): Mongillo has been sentenced to 51 months in prison.

North Carolina Woman Accused Of Embezzling $1 Million From Five Local Companies

Elizabeth “Jeannette” Josey, 50, of  Gransboro, North Carolina, has been accused by authorities of embezzling more than $1 million from a group of five companies based in Carteret County, for whom she had served as office manager.  Authorities, who have issued a warrant for Josey's arrest, allege that she bilked five companies owned by a James Gillikin of Baufort, including Gillikin Marine Railways Inc., Morgan Creek Seafood, Inc., James T. Gillikin Inc., Trawler Captain Jimmy Inc. and Captain James II, Inc., all of Radio Island, NC.  Josey, who had been employed by Gillikin for 17 years, allegedly took company receipts and "converted them to her own use" to establish a lavish lifestyle.  Josey is to be charged with two counts of felony embezzlement and is currently at large.  Anyone with information about her whereabouts is asked to call the Carteret County Sheriff’s Office at 252-504-4800 or at 252-726-1911, 24 hours a day.

Read the story here and here.

Update (6/11/11): Josey was arrested yesterday by Carteret County Sheriff’s detectives.

West Virginia Woman Pleads Guilty To Embezzling $200K From Bank

Bonnie Jean Bain, 60, of Belle, West Virginia, has pleaded guilty to charges she embezzled at least $200,000 from BB&T bank, where she had been a 30 year employee, most recently as a supervisor.  According to authorities, Bain siphoned funds from the bank over a period of 3 1/2 years, from May 2004 until October 2007 and made false entries in the banks books to conceal the thefts.  Prosecutors alleged that Bain used various methods to hide the cash shortage, including recording fictitious cash dollar amounts in her teller drawer and vault by "force balancing" or by creating fictitious cash out tickets.  She was indicted on one count of bank embezzlement and 25 counts of false entries this past January.  Bain is scheduled to be sentenced on September 8, 2011 and faces up to 30 years in prison, plus fines and restitution.

Read the story here, here and here.

Update (2/6/12): Bain was sentenced to 30 months in prison and ordered to pay $293,376 in restitution.  Prosecutors had alleged that Bain embezzled at least $640,000, although the bank believes it lost $1.2 million as a result of the embezzlement.

Utah Man Indicted For Allegedly Running $12 Million Ponzi Scheme

John S. Dudley, 56, of Sandy, Utah, has been indicted on charges alleging he operated a Ponzi-type investment fraud scheme that defrauded investors out of at least $12 million.  Dudley reportedly promised investors they he could earn them 5 to 10 percent per month on investments backed by a "senior life settlement policy," that included a "human jet-pack suit."  Prosecutors allege that Dudley offered these fraudulent investments over a period of three plus years, from January 2007 until March 2010.  Dudley further advised his clients to use "equity mining" to obtain cash to invest in his scheme - a strategy whereby one over-inflates assets to obtain credit in excess of the value of the asset.  Dudley allegedly used investor funds to pay investors "returns" and to support a lavish lifestyle.

Read the story here and here.

Note: this  is yet another major Ponzi scheme perpetrated in the State of Utah and was unfortunately, not included in the Marquet Report on Ponzi Schemes.  The report identifies Utah as having one of the highest risk for Ponzi Schemes in the entire US.  Many of these are affinity schemes targeting mormon investors.

Virginia Woman Pleads Guilty To Embezzling As Much As $400K From American Conservative Union

Diana Hubbard Carr, 56, of Alexandria, Virginia, pleaded guilty to charges she embezzled as much as $400,000 from the American Conservative Union where she had been employed as an administrative director.  According to authorities, Carr's scheme spanned at least 3 years from 2006 through 2009 and involved the diversion of funds from the non-profit's coffers into her own accounts.  She was also accused of paying her credit cards and making personal purchases with the organization's funds.  The ACU hosts the annual Conservative Political Action Committee (CPAC) meeting.  Carr is the ex-wife of David Keene, the former chairman of the ACU and current president of the National Rifle Association.  Carr faces up to 20 years in prison upon sentencing, scheduled for September 16, 2011.

Read the story here.

New Mexico Woman Accused Of Embezzling $270K From Healthcare Concern

Nora Chee, aka Nora Chee Russell, 57, of Silver City, New Mexico, has been charged with embezzling more than $270,000 from ATC Healthcare Staffing Services where she had been employed as an accounts payable bookkeeper.  According to authorities, Chee wrote herself checks over an unspecified period of time.  She also wrote fraudulent checks to a Karl Candelaria, 47 and another man, both non-employees.  Chee, a nurse by training, has been charged with embezzlement and forgery. 

Read the story here.

Minnesota Man Pleads Guilty To Defrauding Insurance Company Out Of $7 Million

Travis Magdalena Scott, 34, of Eden Prairie, Minnesota, pleaded guilty to charges he defrauded Zurich North America out of at least $7.1 million, but as much as $10 million.  According to prosecutors, in the latter half of 2008, Scott submitted fraudulent insurance claims for his business, Security Management Technologies, which was a Zurich insured, claiming it was destroyed due to a lighting strike.  Scott was paid for both physical damages as well as business interruption claims.  Prosecutors alleged that Scott used the ill-gotten gains to support a lavish lifestyle that included personal aircraft, luxury vehicles and watercraft.  Research suggests that Scott offered aircraft flight training. 

Read the story here and here.

Read the DOJ announcement here.

Former Virginia Banker Sentenced In $14.1 Million Embezzlement Case

Linda Speaks Tribby, 42, of Lovettsville, Virginia, was sentenced to 7 years in prison for embezzling $14.1 million from clients of Wachovia Bank, where she had been employed a business relationship manager.  According to authorities, Tribby fraudulently offered bank clients a tax-free interest wealth management account product that did not exist.  Instead, Tribby used the $14,169,878 fraudulently obtained funds for her personal use.  Tribby's scheme spanned a period of more than seven years, from December 2003 through January 2011.   She plead guilty to one count of bank fraud on March 4, 2011.

Read the story here, here, and here.

Former Director At Securities Firm In Connecticut Pleads Guilty To Embezzling $635K

James Glover, 54, of West Harrison, New York, has pleaded guilty to charges he embezzled $624,885 from RBS Securities in Hartford, Connecticut, where he had been employed as "director of middle and back office support."  According to authorities, Glover created a phony vendor called CPS Funding that was similar to a legitimate one.  Over a period of about one year, from January 2009 until January 2010, Glover caused 9 fraudulent funds transfers from RBS to the phony vendor to occur.  He faces up to 10 years in prison, plus fines and restitution.

Read the story here and here.

Former Corporate Counsel of Pennsylvania Hospital Charged With Embezzling $1.7 Million

Roosevelt Hairston, Jr., 45, of Malvern, Pennsylvania, has been charged with embezzling some $1.7 million from the Children's Hospital of Philadelphia where he had served as General Counsel.  According to authorities, over a period of about 12 years, from 1999 until 2011, Hairston created eight shell companies, including Educational Strategies and The Children's Research Alliance, which he used to submit phony invoices to the hospital for various fraudulent expenses.  Hairston used the ill-gotten gains to support a lavish lifestyle, including purchases of luxury vehicles, a yacht, real estate and other personal luxury items.  According to the criminal information filing, Hairston used the identity of a friend and created an e-mail address in his friend's name to send e-mails to CHOP verifying the phony invoices.  Hairston, who was charged with mail fraud, money laundering, and filing a false tax return  is expected to enter a guilty plea, according to his lawyers.

Read the story here, here and here.

Update (7/13/11): Hairston pleaded guilty today to embezzling $1.7 million from Children's Hospital of Philadelphia.  He faces up to 7 years in prison.

Marquet International Issues Report On Ponzi Schemes

Boston – June 2, 2011 – Marquet International Ltd. announced today that it has released The Marquet Report On Ponzi Schemes – an in-depth study of major Ponzi-type investment fraud cases revealed in the United States since 2002. The study examined 329 Ponzi schemes with frauds greater than $1 million and analyzed characteristics within several broad categories related to this kind of white collar fraud:

• Characteristics of the Schemes



• Characteristics of the Perpetrators



• Judicial Consequences

The Marquet Report On Ponzi Schemes also includes practical tips on how to avoid becoming a victim.

Some noteworthy findings from the study include:

• Ponzi case revelations have proliferated in the past three years;



• The median size Ponzi scheme was a $20 million fraud



• The average Ponzi scheme spanned a period of 5.3 years;



• The median annual rate of return promised by Ponzi schemers was 38%;



• The most common type of Ponzi scheme involved fraudulent hedge fund investments;



• Nearly 1 in 4 Ponzi schemes involve the use the affinity group targets;



• The most common affinity group were elderly or retired investors;



• Over 90 percent of major Ponzi schemes are perpetrated by men;



• The average adjusted age for Ponzi perpetrators was 45.7 years;



• More than 1 in 5 Ponzi schemes were perpetrated by senior citizens, 60 and over;



• More than 1 in 8 Ponzi scheme perpetrators has a prior history of fraud; and,



• Utah has one of the highest propensities for Ponzi scheme perpetration

“Since the Madoff debacle, increased awareness and enforcement has helped reveal numerous Ponzi-type investment frauds,” said Christopher T. Marquet, author of the report. “However, continued vigilance, investor skepticism and due diligence efforts are necessary to protect the investing public as much as any enforcement.”

A copy of the 34-page Marquet Report On Ponzi Schemes can be requested by contacting Marquet International at (917) 733-1038 or by e-mail at info@marquetinternational.com. It is also available here.

“It is interesting to note that while we have found that the typical embezzler is increasingly female, the world of Ponzi schemes is dominated almost exclusively by men,” said Marquet. “We were also a little surprised by the number of senior citizen Ponzi schemers out there. We found that many of them prey on their own affinity group – the elderly and retired investors,” continued Marquet.

Marquet International also publishes its annual Marquet Report On Embezzlement as well as a white collar crime blog called FraudTalk..

About Marquet International Ltd.
Marquet International is a boutique business investigations, due diligence, litigation support and security consulting firm based in Boston. Marquet International focuses on providing clients with strategic intelligence to make sound business decisions. Led by long-time industry expert, Christopher T. Marquet, the firm provides Corporate Intelligence & Due Diligence services in corporate transactions and to vet key personnel and business entities around the world. The firm also provides Litigation Support and Corporate Investigation services on behalf of general counsel and law firms representing clients in matters involving fraud, employee misconduct, intellectual property disputes, hostile takeovers, asset recovery, electronic evidence and forensic accounting. Finally, the firm provides a range of security consulting services. For more information, go to http://www.marquetinternational.com/.

Former Deputy Sheriff In California Sentenced For Embezzling $454K From Municipality

Joseph Dyer, 56, of Los Angeles County, California, has been sentenced to 3 years in prison for embezzling about $454,000 in towing fees from the City of La Puenta, Caliofornia where he oversaw the auto impound program. Authorities alleged that over a period of about 6 1/2 years, from June 2001 through December 2007, Dyer was pocketing some of the towing fees paid by citizens, rather than delivering them to city hall. Dyer and his wife, Lydia Dyer, 48, had been indicted in July 2009 for the thefts and for not reporting income for tax purposes. They both plead no contest on April 7th, 2011 - Joseph Dyer to the felony charge of public officer crime and Lydia Dyer to misdemeanor filing of a false tax return. She received a sentence of 12 months probation. The couple has reportedly paid $454,588 in restitution plus $100,000 in investigatory costs. The Dyers paid an additional $44,149 in back taxes and interest.

Read the story here and here.

Florida Man Charged With Embezzling $350K From Luxury Auto Dealership

William Patrick Cleary, 60, of Fort Myers, Florida, has been charged with embezzling more than $350,000 from Garulay‘s Ambassador Auto Sales of East Naples, Florida where he had been employed as the company's bookkeeper. According to authorities, Cleary executed fraudulent electronic bank transfers of company funds to accounts he controlled over a period of nearly a year, from September 21, 2009 until July 2, 2010. The thefts nearly bankrupted the business, which had to lay off employees, according to media reports.

Read the story here and here.

Wisconsin Woman Charged With Embezzling $470K From Blood Center

Tina M. Jacobsen, 49, of Neenah, Wisconsin, has been charged with embezzling at least $470,000 from the Community Blood Center in Grand Chute, WI, where she had been employed as an account specialist. According to authorities, Jacobsen wrote checks to herself from the non-profit's coffers instead of paying vendors and received fraudulent expense reimbursements over a period of more than 5 years, from January 2006 until April 2011. Jacobsen reportedly spent at least $300,000 at local casinos during this period and her home is now in foreclosure. Jacobsen has been charged with five felony theft charges, two misdemeanor theft charges and one count of fraudulent writings.

Read the story here and here.

Update (6/8/11): Jacobsen has been prohibited from leaving the state or gambling by the Outagamie County Court.

Update (11/8/11): Jacobsen, now 50, has pleaded no contest to three felony counts of theft.

Update (1/30/12): Jacobsen has been sentenced 5 years in prison followed by 13 years of supervised release.  She has also been ordered to pay $537,000 in restitution.