Former CFO Of Alabama Hospice Charged With Embezzling More Than $466K

Royce Leon Washburn, Jr., 49, of Sylacauga, Alabama, has been charged with bank fraud in connection with his alleged embezzlement of $466,500 from the accounts of American Homecare Hospice where he had been employed as CFO.  According to authorities, over an unspecified period of time, Washburn wrote checks to himself and received direct deposits into his personal accounts from payroll "greatly exceeding" his authorized salary.  He had been employed as CFO from January 2007 until December 2011 when he was fired.  Washburn faces up to 30 years in prison plus restitution and fines.

Read the story here and here.

Texas Woman Pleads Guilty To Embezzling More Than $2 Million From BofA

Pamela Cobb, 40, of River Oaks, Texas, has pleaded guilty to embezzling more than $2 million from Bank of America where she had been employed as a branch manager.  According to authorities, over a period of at least 9 years, from 2002 until April 2011, Cobb withdrew cash from bank customer accounts, sometimes forging their signatures on withdrawal slips.  Cobb reportedly used the misappropriated funds to pay for personal luxury items including motor vehicles, property, vacations, clothing, and jewelry.

Read the story here and here.

Hat tip: FraudTalk reader Joe.

California Woman Facing Trial For Embezzling Nearly $400K From Pastry Smart

Gabriela Figueroa Verdusco

Gabriela Figueroa Verdusco, 32, of Redwood City, California, who has been charged with embezzling at least $387,631.03 from Pastry Smart in San Mateo, where she had been employed as a bookkeeper, is now facing trial.  According to authorities, over a 3 year period, from 2008 through 2011, Verdusco wrote checks to herself from company accounts.  Authorities believe Verdusco stole the money to cover extensive financial debts.  She has plead not guilty last October to 7 counts of embezzlement. 

Read the story here.

Hat tip: FraudTalk reader Joe.

California Woman Charged With Embezzling $104K From County Tax Office

Patricia Moretti

Mary "Patricia" Moretti, 56, of Mariposa, California, has been charged with embezzling about $104,000 from the Mariposa County tax office where she had been employed.   According to authorities, over a six year period, from September 2006 until earlier this year, Moretti is believed to have siphoned funds from the tax office by converting tax receipts for her own benefit.  The 71-count criminal complaint filed against Moretti includes charges of burglary, grand theft, embezzlement by clerk, embezzlement by government clerk, forgery and altering government documents.

Read the story here.

Hat tip: FraudTalk reader Joe.

Colorado Man Accused Of Embezzling Nearly $150K From Local Hospice

Yochai Uzi Berlin, 28, of Broomfield, Colorado, has been charged with embezzling nearly $150,000 from HospiceCare of Boulder and Broomfield Counties where he had been employed as an accountant.  According to authorities, manipulated the company's new electronic vendor payment system to pay himself substantial amounts of money over a period of several months.  According to the arrest affidavit, investigators believe that Berlin made 16 payments to himself from the vendor system totaling $103,115.30.  He also allegedly added mileage reimbursement to his paycheck and his wife's paycheck worth $36,600 between August and October of 2011.  He has been charged with theft and money laundering.

Read the story here and here.

Mississippi Couple Charged With Embezzling More Than $100K

Emily Sanders, 53, and Merrick Sanders, 54, of Natchez, Mississippi have been arrested on charged they embezzled more than $100,000 from a company they were starting up with other investors in which Emily was president and Merrick was vice president.  Instead of using the investor funds to open the business, the Sanders' allegedly used it for their own benefit.

Developing...

Read the story here.

Tennessee Couple Charged With Embezzling More Than $730K From Non-Profit

Risa Woodward

Risa Lynn Woodward, 45, and her husband, James Calvin Woodward, Jr., 48, both of Hendersonville, Tennessee, have been indicted on charges they embezzled more than $730,000 from the American Association for State and Local History where Risa Woodward had been employed as finance director.  According to the indictment, the couple are accused of using the association’s credit and debit cards, forging a credit-card application and stealing the identity of the group’s executive director in order to defraud the non-profit.  The Woodward's are accused of using the misappropriated funds and organization's credit cards to buy lodging, clothing, food, appliances and other goods for their own benefit.  Risa Woodward joined the non-profit in 1991 and became finance director in 1994, resigning in August 2011.  It is unclear how long the fraud has been ongoing.  Arraignment is scheduled for April 11, 2012.

Read the story here and here.

Update (4/12/12): Risa and James Woodward both pleaded not guilty.

Update (8/7/12): The American Association for State and Local History has now sued its former accounting firm for damages for failing to recognize the alleged $800,000 Woodward embezzlement. 

Michigan Man Charged With Embezzling More Than $500K From Auto Insurance Concern

Jason Matthew Arntz, 32, of Mount Pleasant, Iowa, has been charged with embezzling more than $500,000 from Auto-Owners Insurance where he had been employed as a claims officer.  According to authorities, Arntz added items to legitimate customer insurance claims and converting those items for his own use.  He has been charged with 7 felony counts. 

Read the story here.

Update (8/17/12): Arntz has been sentenced to 1 year in prison and ordered to pay some $600,000 in restitution.  Arntz, who pleaded guilty in July, had faced up to 20 years in prison.

Iowa Woman Sentenced For Embezzling $175K

Katheryn L. Hutchens, 56, of Marshaltown, Iowa, has been sentenced to just 8 years probation for embezzling at least $175,000 from Weidner Construction Inc., where she had served as office manager.  According to authorities, over a period of at least 4 years, Hutchens stole from the company by forging company checks.  Company owners believed she stole as much as $350,000.  She reportedly used the stolen money on lavish personal spending. 

Read the story here and here.

Former Washington State Lawyer Pleads Guilty To Charges He Embezzled More Than $1 Million From Clients

Peter Allen Moote, 63, formerly of Whidbey Island, Washington, has pleaded guilty to charges he embezzled more than $1 million from his clients.  According to authorities, over a period of more than 10 years, Moote siphoned funds from client trust accounts to pay for his personal living expenses and gambling.  Moote has agreed to pay restitution and is expected to be sentenced in June 2012.

Read the story here and here.

Read the DOJ announcement here.

Hat tip: FraudTalk reader Julianne.

Former Bank Employee In Missouri Sentenced For Embezzling $444K

Thelma Black, 66, of Farmington, Missouri, has been sentenced to 27 months in prison for embezzling some $444,000 from the Sun Security Bank and its predecessor bank where she had been employed.  According to authorities, over a period of at least 11 years, from at least 2000 to approximately May 2011, Black transferred bank customer funds into her own account or cashed customer funds for her own benefit.  She pleaded guilty to two counts of bank embezzlement last December.  Black had been employed by the bank and its predecessors for 28 years.  She was also ordered to pay restitution in the amount of $451,000.

Read the story here and here.

Read the DOJ announcement here.

Michigan Woman Accused Of Embezzling More Than $100K From Local HVAC Firm

Deborah Lynn Bricker, 58, of Alanson, Michigan, has been arrested on charges she embezzled more than $100,000 from Fisher Plumbing and Heating where she had been employed as a bookkeeper.  According to authorities, over a period of more than 3 years, from December 2008 to 2012, Bricker wrote and forged checks to herself and family members.  She faces charged of conducting a criminal enterprise and conspiracy to conduct a criminal enterprise, among other felony charges.

Read the story here.

Former Legal Assistant In Ohio Convicted Of Embezzling $305K

Christina G. Lynn, 41, of Williamsport, Ohio, has been convicted and sentenced to 27 months in prison for embezzling $305,127 from the Huffer and Huffer law firm where she had been employed as a legal assistant.  According to authorities, over a period of six years, from April 2004 through April 2010, Lynn took monies from law firm clients intended for veterans benefits, among other things.  Lynn had pleaded guilty last October to one count of embezzlement of public funds.

Read the story here and here.

Delaware Woman Charged With Embezzling More Than $400K From Farm

Valerie D. Onley, 41, of Salisbury, Delaware, has been charged with embezzling more than $400,000 from Westwood Farms Inc. where she had been employed as a bookkeeper.  According to authorities, over a period of at least 2 years, from August 2009 through August 2011, Onley wrote checks to herself and her husband, using business credit cards for personal purchases, and using the company funds to pay her personal bills.  Onley's husband, James A. Onley Jr., 41, also of Salisbury, has also been charged criminally in this case.  He is currently in jail in Maryland on unrelated charges. 

Read the story here and here.

Embezzlement Of $118K From North Carolina Auto Dealership Being Investigated

Wake Forest, North Carolina police are investigating allegations that $118,647.27 was embezzled from the Crossroads Ford of Wake Forest Inc. auto dealership by Helen Beckham Taylor, believed to be 55 years old and the former accounting manager.  The alleged embezzlement is believed to have ocurred over a period of more than 2 years, from January 1, 2009 until March 26, 2011.  Taylor not yet been charged criminally.  However, authorities believe she took money from deposits at the dealership and replaced cash with checks she had taken from the mail and “any other source available.”

Read the story here and here.

Former Head Of Virginia Rescue Squad Charged With Embezzling More Than $100K

Thomas Franklin Carroll, aka Tommy Carroll, 49, of Bluefield, Virginia, has been charged with embezzling more than $100,000 from the Bluefield Rescue Squad where he had served as administrator.  According to authorities, over a period of 3 1/2 years, from January 2008 until June 2011, Carroll misappropriated funds from the rescue squad by abusing credit card accounts for personal use, increasing his pay without authorization and obtaining a loan using squad equipment as collateral. 

Read the story here and here.

Massachusetts Woman Charged With Embezzling $220K From EMC

Madeline Vinton, 35, of Webster, Massachusetts, has been charged with embezzling nearly $220,500 from EMC Corporation where she had been employed as an administrative assistant.  According to authorities, Vinton misused her compay issued credit card for personal expenditures including travel, sporting events and plastic surgery.  She is also accused of fraudulently claiming overtime hours she was not entitled to, among other schemes.  Vinton has been charged with larceny by embezzlement, fraud, larceny of more than $250 and knowingly receiving and using another person’s credit card.  She has plead not guilty.

Read the story here and here.

California Man Charged With Embezzling More Than $100K From Fire Union

John Morton Watson, 37, of Visalia, California has been charged with embezzling more than $100,000 from the Clovis Firefighters Association where he had served as treasurer.  According to authorities, over a period of 7 years, from late 2004 through 2011, Watson siphoned money from the firefighter's union.  Watson has reportedly admitted to taking $56,000 because of a personal financial hardship.

Read the story here.

Ohio Company That Received Federal Stimulus Funds Reports $111K Embezzlement

3MX Partners LLC, a real estate company based in Columbus, Ohio reported to authorities that it was the victim of an embezzlement and kickback scheme that defrauded it out of at least $111,625.  According to media reports, 3MX Partners received a bond financing from the federal stimulus program to renovate a building in the amount of $2.2 million.  It was reported that two suspects, including at least one employee, colluded in an over-billing and kickback arrangement from the proceeds on the project.  It is unclear whether any arrests have been made in this case.

Developing...

Read the story here.

California Woman Suspected Of Embezzling $280K From Non-Profit Utility

Debra Diane Sutton

Debra Diane Sutton, 55, of Moreno Valley, California is suspected of embezzling some $280,000 from the Box Springs Mutual Water Co., a local non-profit utility, where she had been employed as general manager.  Sutton reportedly resigned this past January when the misappropriations came to light.  Sutton is suspected of using the company ATM card she was issued to pay for several cruises including ones to Alaska, the Bahamas, Mexico, the Caribbean.  She also is suspected of using the ATM card to make withdrawals at casinos and to pay for other personal expenses.  The fraud is believed to have occurred between early 2009 and January 2012.

Developing...

Read the story here.

Update (3/22/12): Sutton has been formally indicted on felony grand theft and identity theft charges in connection wth her alleged embezzlement of what is now believed to be $784,175.97 from the Box Springs Mutual Water Company.  Read an update of the story here.

Update (8/30/12): Sutton was sentenced to 5 years and 4 months in state prison.  Sutton was also ordered to pay restitution as part of her plea-bargain with prosecutors: the $784,175 that she looted from the water company and an assessed $101,554 owed to California for back taxes in 2009-10.

Texas Woman Pleads Guilty To Embezzling $102K From Bank

Patricia Garcia Munoz, 50, of Laredo, Texas, has pleaded guilty to charges admitting she embezzled nearly $102,000 from certain customer accounts at BBVA Compass Bank where she had been employed as bank branch manager.  According to authorities, Munoz stole from at least one customer account whom she thought would not notice to discrepancy.  Munoz' schemes allegedly spanned a several month period, from November 2009 through April 2010.  Under the plea agreement, Munoz must make full restitution.  She also faces up to 30 years in prison, upon sentencing. 

Read the story here and here.

Read the DOJ announcement here.

Florida Man Accused Of Embezzling $170K From Colorado Auto Dealership

James David Gattis

James David Gattis, 45, currently of Delray Beach, Florida, has been charged with embezzling more than $170,000 from Grand West Kia, an auto dealership based in Grand Junction, Colorado, for which he had been employed as general manager.  According to authorities, Gattis allegedly purchased numerous vehicles from other dealerships and pocketed kickbacks from the sales.

Developing...

Read the story here.

Update (1/17/13): Gattis was ordered to pay full restitution but received no jail time in his sentence.

California Woman Sentenced For Embezzling $392K From Golf Club

Lidia Montano, 53, of Santa Rosa, California, has been sentenced to one year in prison for embezzling $392,735 from the Sonoma Golf Club where she had been employed as business manager.  According to authorities, over a period of 3 years, from July 2007 to August 2010, Montano misappropriated funds by giving herself unauthorized raises and paying personal bills with company accounts.  Her schemes were discovered while she was on vacation in Italy and the club's payroll company called about payroll discrepancies.  Montano pleaded no contest to one count of felony grand theft with a white-collar crime enhancement this past December.  She has reportedly repaid about $190,000.  The misappropriated funds were reportedly used to sustain a lavish lifestyle.

Read the story here.

Louisiana Couple Accused Of Embezzling $169K From Homeowners Association

Amanda Sturdivant, 42, and Jimmy Sturdivant, 47, both of Covington, Louisiana, have been chaged with embezzling some $169,000 from the Bon Temps Village homeowners association where Amanada had been employed as business manager.  According to authorities, beginning in 2008 and continuing for more than 3 years, Amanda Sturdivant began misappropriating from the association by issuing herself an extra paychecks each month.  She is also accused of writing at least 100 checks from association accounts to cash for her own and her husband's benefit.  The misappropriated funds were reportedly used to pay for the couple's personal bills, including mortgage and credit cards and to pay for vehicles, travel and other personal luxuries.  They have pleaded not guilty to the charges.

Read the story here.

Hat tip: FraudTalk reader Joe.

Maine Woman Settles Suit Over $519K Embezzlement From Credit Union

Marsha Richard, 42, of Topsham, Maine agreed to settle a civil suit filed by the Atlantic Regional Federal Credit Union seeking restitution and alleging she had embezzled $519,000 from the financial institution where she had been employed.  Richard had previously been charged criminally for the misappropraitions and pleaded guilty last September and untimately sentenced to 33 months in prison this January.  Richard reportedly applied bounced checks funds to her own account rather than to a specific account at the bank.  In the civil settlement, Richard agreed to pay restitution in the amount of $370,000 back to the credit union.  Richard had been a 23 year veteran employee of the credit union. 

Read the story here, here and here.

Massachusetts Woman Charged With Embezzling Nearly $200K From Employer

Irina Cholodenko, 45, of Natick, Massachusetts has been charged with embezzling  $197,641 from her unnamed employer, a video production company based in Newton, Mass. where she had been employed as a Controller.  According to prosecutors, over a period of at least 5 years, from 2005 through 2010, Cholodenko forged company checks she deposited into her own accounts or otherwise used for her own benefit.  Specifically, Cholodenko has been charged with three counts of bank fraud, four counts of uttering forged securities and five counts of wire fraud.  Research suggests that the victim company is Video Link, Inc. 

Read the story here, here and here.

Update (10/2/12): Cholodenko was sentenced to 27 months in prison and ordered to pay full restitution.

Virginia Man Pleads Guilty To Embezzling Nearly $1 Million

Tony Patton, 42, of Gainesville, Virginia, has pleaded guilty to embezzling at least $950,000 from an unnamed Belgian company with a US subsidiary based in Manassas, Virginia, where he had been employed as vice president of operations.  According to prosecutors, over a period of 3 years, from September 2008 through August 2011, Patton "transferred funds from corporate accounts to his own personal bank account, obtained reimbursement for personal expenditures that he falsely represented were corporate expenses, used company debit cards and checks to pay for personal expenses, paid himself a monthly commission without the company’s knowledge or consent, and diverted refunds payable to the company to himself."  Patton reportedly used some of the ill-gotten gains to pay for personal luxuries, such as high-end automobiles and luxry travel.

Read the DOJ announcement here.

Hat tip: FraudTalk reader Joe.

Update (6/23/12): Patton, now 43, was sentenced to 33 months in prison for embezzling nearly $1 million from Soudal, Inc. 

California Woman Sentenced For Embezzling More Than $700K From Adoption Agency

Kathaleen Prince, 62, of Oxnard, California, has been sentenced to 41 months in prison for embezzling more than $700,000 from the Inner Circle Foster Family Agency, a local adoption agency where she had been employed as a bookkeeper and accountant.   According to authorities, over a period of more than 3 years, from 2006 through 2009, Prince forged the "signature of authorized persons on checks drawn on the bank accounts of Inner Circle that were made payable to herself and to her creditors, including checks that were used to pay for Prince's personal credit card bills, cell phone bills, the mortgage for a boat that she had lived on, and a vacation in Hawaii."  She was reportedly fired from the agency in February 2009 after the thefts were discovered.  Prince had been employed by the agency since April 2002.  Prince has also been ordered to pay restitution of $708,924 back to Inner Circle. 

Read the story here and here.

Read the DOJ announcement here.

New Jersey Woman Accused Of Embezzling More Than $900K From Philly Archdiocese

Anita Guzzardi, 42, of Haddon Heights, New Jersey, has been charged with embezzling more than $900,000 from the Archdiocese of Philadelphia where she had been employed as chief financial officer.  According to authorities, over a period of more than 6 years, from at least 2005 through August 2011, Guzzardi used Archdiocese checks to pay personal credit card bills and otherwise for her own benefit.  Specifically, Guzzardi has been charged with theft, forgery, unlawful use of a computer and related crimes.  Guzzardi has been employed by the Archdiocese in various fiduciary roles since 1989.

Read the story here, here and here.

Update (7/2/12): Guzzardi has plead guilty to felony counts of theft by deception, forgery and unlawful use of a computer.

Update (8/25/12): Guzzardi was sentenced to 2 to 7 years in prison for embezzling what is now understood to be more than $906,000 from the Archdiocese of Philadelphia.  She has reportedly paid back some $206,000 to date.

Hawaii Woman Pleads Guilty & Gets Sentenced For Embezzling More Than $160K From Credit Union

Amy P. Waikiki, 36, of Maui, Hawaii, pleaded guilty to embezzling $163,744 from the accounts of 34 credit union accounts at Kulia Ohana Credit Union where she had been employed as a teller.  According to authorities, over a period of nearly one year, from August 2008 through June 2009, Waikiki siphoned funds from customer accounts.  She was sentenced to 44 months in prison.

Read the story here.

Update (4/5/13): Research suggests that Waikiki was previously convicted and sentenced to jail in a prior embezzlement case whereby she allegedly stole nearly $30,000 from the Majestic Insurance Agency.

Upstate New York Woman Accused Of Embezzling $873K; Suspicious Fire Delays Audit

Sandi M. Polanski, 60, of Depew, New York, has been accused in a civil suit of embezzling some $873,337 from Treibacher Schleifmittel a subsidiary of France-based  Imerys SA where she had been employed as a payroll and accounts payable manager.  According to the lawsuit, Polanski created a phony employee named A.J. Sobschak who was paid a salary through the payroll system and whose checks were allegedly deposited into Polanski's bank account.  She is also suspected of giving herself unauthorized raises and bonuses.  The misappropriations are believed to have occurred from 2009 through 2011.  Auditors were investigating the payroll discrepancies when a suspicious fire broke out at the facility and caused the audit to be suspended.  Fire investigators determined that there were two points of origin for the fire, including the conference room where the audit was being conducted. 

Read the story here.

Former California Sheriff's Deputy Accused Of Embezzling More Than $300K From Law Enforcement Association

Donald Philip Atkinson, 50, of El Dorado Hills, California has been arrested and charged with embezzling more than $300,000 from the El Dorado County Deputy Sheriff's Association where he had served as president.  According to prosecutors, over a period of about 6 years, Atkinson had falsified documents, submitted forged documents for reimbursement and pocketed money that he claimed was for charitable purposes.  Atkinson also allegedly stole $100,000 from an elderly or dependent person claiming it was to purchase a photography business from a person with cancer using a fraudulent contract.  Atkinson has been arrested on 44 felony counts that include embezzlement, grand theft, forgery and perjury.  He rose to the rank of Sergeant after a 17 year career with the sheriff's department.

Read the story here, here and here.

Update (7/30/12): Atkinson, now 51, has been sentenced to five years in state prison and ordered to pay more than $400,000 in restitution. 

Nevada Man Sentenced For Embezzling $2.5 Million From Electronic Lock Company

Juan Ramon Cabezas, 56, of Reno, Nevada, has been sentenced to 87 months in prison for embezzling some $2.5 million from Securitron Magnalock Corp. for whom he had been employed as chief financial officer.  According to prosecutors, over a period of nearly 7 years, from May 2003 to early 2010, Cabezas diverted company funds into his own personal retirement account as well as forged checks for his own benefit.  He pleaded guilty last October to charges of mail and bank fraud, tax evasion, identity theft and money laundering.  Cabezas, who was also ordered to pay a $50,000 fine, has reportedly already made restitution to the company in the amount of $3.5 million.

Read the story here and here.

Read the DOJ announcement of his indictment here.

Missouri Man Pleads Guilty To $850K Embezzlement From BassPro Group Subsidiary

Paul Ray Hunting, 39, formerly of Lebanon, Missouri, pleaded guilty to charges he conspired to embezzle at least $850,000 from Tracker Marine, a subsidiary of BassPro Group, where he had been employed as a transportation manager.  According to authorities, over a period of at least 2 1/2 years, from January 2006 to August 2008, Hunting caused more than 2,550 fraudulent invoices to be submitted to the company from J&M Trucking, Inc., the owners of which he allegedly conspired.  Hunting allegedly received received $265,775 in kickbacks from his co-conspirators, James Ivey, 51, and his wife, Melinda Ivey, 42, both of Lebanon and the owners of J&M Trucking.  Hunting has also been charged with money laundering and faces up to 26 years in prison, plus restitution and fines.

Read the story here and here.

California Woman Charged With Embezzling $300K From Property Management Company

Imelda Lavitoria, 45, of Novato, California, has been charged with embezzling at least $308,345 from Robert Butler Co., a property management and brokerage firm for which she had been employed as an account manager.  Authorities allege that since 2009, Lavitoria skimmed funds from the company by "making and passing fraudulent checks."  Lavitoria has been reportedly employed by the firm for 17 years.

Read the story here and here.

Update (11/7/12): Lavitoria was sentenced to 2-10 months in prison.

Michigan Judge Accused Of Misappropriating $130K For Personal Expenditures

Sylvia Ann James, 58, of Inkster, Michigan, and a judge sitting on the 22nd District Court bench, has been accused of misappropriating about $130,000 from the Court's Community Service Fund intended to benefit local civic and school groups.  The Community Service Fund is financed by civil and criminal penalties and fines.  The Michigan Judicial Tenure Commission has been overseeing hearings in the judicial misconduct case whereby James is accused of improper spending included money for Inkster High School cheerleader uniforms, a school European trip fund, a 1970 class reunion and the Inkster Police Auxiliary.  James has sat on the 22nd District Court as a judge for 23 years.

Read the story here, here and here.

Former Medical Exec In Missouri Accused Of Embezzling "Millions" - Supports Lavish Lifestyle

Dunard Morris

Dunard Winfield Morris, 48, of St. Charles, Missouri, has been charged with embezzling millions of dollars from Metropolitan Urological Specialists PC for which he had served CEO.  Morris is also accused of fraudulently posing as a military hero.  Morris is accused of spending much of the money to support an extraordinarily lavish lifestyle that included numerous luxury wristwatches, luxury automobiles, jewelry, guns, designer clothes, wine, expensive restaurants, a luxury apartment and international travel.  Morris allegedly used the company payroll system to increase his salary without authorization by hundreds of thousands of dollars.  Morris had fraudulently claimed he had been awarded the Navy Cross, according to reports.  Specifically, Morris has been charged with multiple counts of mail fraud and wire fraud as well as one count of stolen valor fraud.

Read the story here and here.

Update (9/21/12): Morris pleaded guilty to 3 felony counts of mail and wire fraud.

Update (12/17/12): Morris was sentenced to 78 months in prison and ordered to pay $5.6 million in restitution.

Former CEO Of Glock Firearms Found Guilty Of Racketeering; Skims "Millions"

Paul F. Jannuzzo

Paul Francis Jannuzzo, 55, of Atlanta, Georgia, has been found guilty conspiring with another former executive to "skim millions" from Glock, Inc., for which he had served as CEO.  Jannuzzo was indicted in 2009 for conspiring with Peter Manown, another former Glock executive and local attorney, to "divert millions of dollars from the company between 1991 and 2003 using cloned bank accounts, forged documents, and fraudulently obtained loans."  Manown accepted a plea agreement in 2008 in exchange for assistance in the prosecution of Jannuzzo. 

Read the story here, here and here.

Update (4/11/2012): Jannuzzo was sentenced to 7 years in prison for his role in the pilfering of more than $5 million from Glock, Inc.

Mississippi Woman Sentenced For Embezzling $500+K From US DOA

Cynthia Cooley, believed to be in her late 40s, of Hattiesburg, Mississippi, has been sentenced to 89 months in prison for embezzling more than $500,000 from the U.S. Department of Agriculture's Rural Development program and her undisclosed employer.  According to authorities, over the course of more than 2 years, from 2008 through September 2010, Cooley worked as an office manager for a furniture company that sells furniture and other supplies to government entities.  She reportedly embezzled her employer's owner's personal funds and fraudulently obtained a credit card in their name which she used for her own benefit.  Cooley pleaded guilty in October 2011 to on count of felony bank fraud and one count of aggravated identity theft and has also been ordered to pay restitution in the amount of $507,710. 

Read the story here and here.

Read the DOJ announcement here.

Michigan Man Pleads Guilty To Embezzling $100K In Conspiracy Case

Harry Martin Gibbs Jr., 56, pleaded guilty to embezzling at least $100,000 from two General Motors Co. warehouses where he had been employed.  According to authorities, Gibbs, along with three other individuals, Joseph Shuler, 56, of Lansing, Michigan, Billy Baumchen, 56, of Perry, Michigan and John Kevin Bowles, 53, of Howell, Michigan, were involved in a conspiracy to steal tools and equipment from the warehouses.  Gibbs is scheduled to be sentenced on April 19th, 2012.  The criminal cases against the other three men are pending.

Read the story here.

Washington State Man Accused Of Embezzling Nearly $1.1 Million From Public Utility

Joseph Phan, 44, of Seattle, Washington, has been arrested and charged with embezzling Nearly $1.1 million from the Seattle Public Utilities for which he had been employed as a project engineer.  According to authorities, over a period of about 5 years, beginning in 2006 and continuing through January 2011, Phan took customer payments for water main extensions and repairs and deposited them into an account he created and controlled for his own benefit.  Phan reportedly used the ill-gotten gains to purchase a rental property, a car, pay off credit card debts and other personal expenditures.  In 1993, Phan changed his name from Chau Phan to Joseph Phan.  Phan reportedly had access to customer-service accounts so he could research and issue water-availability certifications to property owners and developers.  In 2010 he reportedly credited his own account twice which apparently triggered the audit focus on his dealings.  He had been employed by the City of Seattle since 1995 but was fired in early 2011 when the irregularity came to light. 

Read the story here and here.

Hat tip: FraudTalk reader Julie

Update (1/17/14): Phan was sentenced to 7 1/2 years in prison after having plead guilty to 67 counts of first-degree theft last September.

3 Californian's Accused Of Embezzling $900K In Government Funds Affiliated With The Yurok Tribe To Study The Spotted Owl

Roland Raymond

Roland L. Raymond, 49, of Eureka, California - the former Forestry Director of the Yurok Tribe, along with two contract biologists, Sean Eric McAllister, 45 and Ronald R. LeValley, 65, both of Arcata, California, have been accused of bilking the government out of more than $900,000 in funds primarily intended to be used to study the Spotted Owl.  According to authorities, the three colluded in a fraudulent billing and kickback scheme that spanned nearly a 3 year period from February 2008 to December 2010 whereby Raymond submitted fraudulent invoices on behalf of the biologists and their firm, Mad River Biologists.  A total of 75 such invoices were submitted and paid, totalling $870,064.91.  Raymond, who was a longtime employee of the Yurok tribe, is also accused of making numerous unapproved purchases of personal items on tribal credit card accounts including seven iPads, car repairs, a shower door, gasoline and cleaning supplies.  McAllister and LeValley were arrested earlier this week on charges of burglary, embezzlement and conspiracy.  As of this writing, Raymond had not been arrested.

Read the story here, here and here.

Read the affidavit for the search warrant here.

Update (4/5/12): Raymond has turned himself in an pleaded not guilty to the charges.

Update (1/13/14): Raymond has been sentenced to 3 years in prison and ordered to pay $852,000 in restitution.

Oregon Woman Who Embezzled Nearly $250K In Part To Pay For Breast Implants & Tummy Tuck Sentenced To Prison

Lisa Marie Sundquist, 45, of Hillsboro, Oregon, was sentenced to 57 months in prison for embezzling nearly $250,000 from Surgical Specialty Group where she had been employed as office manager.  According to authorities, over a period of nearly a year and a half, from July 2008 to November 2009, Sundquist siphoned funds from the medical practice by issuing fraudulent checks to her own benefit.  Sundquist reportedly used much of the ill-gotten gains to pay for breast implants, plastic surgery, repeated sessions at tanning salons, restaurants, flowers and clothes, among other personal expenses.  Sundquist had pleaded guilty to 13 counts of aggravated first-degree theft in state court.

Read the story here and here.

Maryland Woman Pleads Guilty To Embezzling $217K From Federal Government Commission On Religious Freedom

Carmelita R. Hines, 48, of Waldorf, Maryland, pleaded guilty this week to wire fraud charges in connection with an embezzlement scheme she perpetrated in the amount of $217,074 against the United States Commission on International Religious Freedom where she had been employed as director of administration and office operations manager.  According to prosecutors, over a period of at least 4 years, from 2007 through 2011, Hines used commission credit card accounts and fraudulent reimbursements as well as cash withdrawals for her own benefit.  According to the FBI, Hines made personal purchases with the ill-gotten gains that included "assorted gift cards, computer equipment, automobile GPS systems, an iPod Nano, gasoline, cosmetics, movie tickets, investment in a “get-rich-quick” scheme, and other items."  Hines is scheduled to be sentenced on May 11, 2012.

Read the story here.

Read the DOJ announcement here.

Update (5/12/12): Hines has been sentenced to 20 months in prison.

Former Missouri Banking Exec Pleads Guilty To Embezzling $540K

Kelley Lee Steiner, 52, Jefferson City, Missouri, pleaded guilty to charges she embezzled more than $540,000 from the Jefferson Bank where she had been employed as a vice president and secretary to the board.  Steiner also served as the personal executive assistant to former bank president Harold W. Westhues.  Authorities alleged that over a period of nearly 7 years, from January 2002 through November 2008, Steiner embezzled from both the bank and Westhues personal checking account.  Steiner is also alleged to have embezzled about $54,000 from Modern Business Systems, another company for which she had been employed.  Steiner had been charged with embezzlement by a bank officer and submitting a fraudulent tax return in an criminal Information.

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Update (1/3/13): Steiner was sentenced to one year and a day in prison and ordered to pay restitution in the amount of $664,495.

Iowa Man Pleads Guilty To Embezzling $242K From Machinery Company And Is Sentenced To 10 Years

Scott Donnelly

Scott F. Donnelly, 50, of Hiawatha, Iowa, pleaded guilty to charges he embezzled $242,532 from the Newell Machinery Company where he had been employed as company controller.  According to authorities, over a period of nearly 2 years, from July 22, 2009 to March 7, 2011, Donnelly deposited at least 10 checks made out to the company into a personal bank account he had set up.  Donnelly reportedly used the money for personal loans and a mortgage, as well as many luxury items. The funds were tracked to payments that went to a contractor for home renovations, a vacation time share, recreational vehicles and accessories, a piano, auto loans and a spa and pool.  Donnelly was then sentenced to 10 years in prison.

Read the story here and here.