Minnesota Man Sentenced For Defrauding Banks Out Of $8 Million

Joseph W. Traxler, 64, of Bloomington, Minnesota, has been sentenced to 5 years in prison for defrauding a bank out of about $8 million.  Traxler was senior vice president and chief financial officer of Centennial Mortgage and Funding, Inc.  From 2007 to 2008, prosecutors alleged that Traxler used funds intended for mortgage loans to cover Centennial's operating losses and to fund the company's payroll and other expenses.  Traxler pleaded guilty in October 2011 to one count of aiding and abetting bank fraud.  Traxler was ordered to pay $5,395,923 in restitution.  After his sentencing, Traxler was fired from his teaching job at Minnesota School of Business. 
Read the story here and here.

Read the DOJ announcement here.

Former Bank Manager In Mississippi Sentenced For Embezzling Nearly $238K

Sharon Monroe, 57, of Lauderdale, Mississippi, has been sentenced to 51 months in prison for embezzling $237,657.88 from the Commercial Bank in Meridian where she had been employed as a vice president and branch manager.  According to authorities, over a one year period, from June 2008 through May 2009, Monroe took out loans in bank customer names and kept the proceeds for herself.  She was also ordered to pay full restitution.  Monroe pleaded guilty in February 2012 to bank fraud and aggravated identity theft. 

Read the story here and here.

Tennessee Man Sentenced For Embezzling $216K From Local Housing Authority

David Royce Ford, 35, of Ripley, Tennessee, has been sentenced to 2 years in prison for embezzling some $216,000 from the Ripley Housing Authority where he had previously served as executive director.  According to authorities, over at least a one year period, beginning in January 2009 and continuing until 2010, Ford made numerous unauthorized purchases and withdrawals from the agency's checking account for his own benefit that included payments to buy a motorcycle and a Ford F150 pickup truck.  He is also accused of failing to report about $50,000 in additional income for tax purposes.  Ford pleaded guilty to tax evasion and money laundering in January 2012.

Read the story here and here.

Read the DOJ announcement of his guilty plea here.

Hat tip: FraudTalk reader Joe.

Maryland Woman Charged With Embezzling More Than $400K

Julie Holland

Julie D. Holland, 39, of Pocomoke City, Maryland, has been charged with embezzling more than $400,000 from Nock's Tire Service and several related businesses where she had been employed as a bookkeeper.  According to authorities, over an unspecified period of time, Holland made transfers from corporate accounts to her personal accounts for her own benefit.  Holland has been charged with one count of a theft scheme over $100,000.

Read the story here.

South Dakota Woman Sentenced For Embezzling Nearly $300K

Sandra Tawzer, 32, of Arlington, South Dakota, has been sentenced to 150 days in jail for embezzling nearly $300,000 from Tri-State Battery where she had been employed as a bookkeeper.  According to authorities, over a period of about 5 years, from April 1, 2006 through May 9, 2011, Tawzer siphoned funds from the company by manipulating the payroll, overpaying herself and others and keeping the difference.  The reduced sentence was given resulting from her already repaying about $250,000 of the $285,000 Tawzer stole.  She must complete the restitution as well.  The theft came to light in 2011.

Read the story here and here.

Virginia Woman Sentenced For Embezzling As Much As $1 Million From Marriott International

Lorraine Wakefield, 51, of Alexandria, Virginia has been sentenced to one year and a day in prison for embezzling between $400,000 and $1 million from Marriott International where she had been employed as an administrator.  Wakefield reportedly used her corporate credit card and those executives she supported for her own benefit.  She also submitted false invoices and had the company pay for her personal American Express bills.  Wakefield, who pleaded guilty to wire fraud charges in January 2012, has also been ordered to repay Marriott $440,000. 

Read the story here and here.

South Dakota Woman Charged With Embezzling $170K From Local Fire Department

Denae Baustian, 46, of Tea, South Dakota, has been indicted for allegedly embezzling about $170,000 from the Tea Fire Department where she had previously served as treasurer.  According to authorities, the thefts occurred over a two year period from at least January 2010 through December 2011 whereby Baustain manipulated the Department's charity and savings accounts for her own benefit.  She has been indicted on a single count of aggravated grand theft and faces up to 15 years in prison.

Read the story here.

Update (12/17/12): Baustian was sentenced to 8 years in prison.

Nebraska Woman Charged With Embezzling $662K From Credit Union

Crystal Lankford, 35,  of Seward, Nebraska, has been charged with embezzling nearly $662,000 from the H.B.E. Credit Union where she had been employed .  According to authorities, over a period of about 5 years, from 2006 until 2011, Lankford siphoned funds from the credit union via an undisclosed scheme. 

Developing...

Read the story here.

Update (1/7/13): Lankford was sentenced to 45 months in prison and ordered to pay $635,998.56 in restitution.  According to prosecutors, "from at least April 12, 2006 to September 20, 2011, Lankford began to write checks, drawn on the operating account of HBE at Union Bank and Trust, to herself and her husband, Steve Lankford, without the approval or authorization of HBE Credit Union or its officers."

Washington State Woman Charged With Embezzling More Than $540K From Food Services Of America

Julie Anne White, of Tacoma, Washington, has been charged with embezzling more than $540,000 from Food Services of America where she had been employed as an accountant.  According to authorities, over a period of at least four years, beginning in 2007 and continuing until 2011, White used the company's electronic payment system to transfer funds to her own accounts and to pay for personal expenses, including her mortgage and to buy a $39,000 boat.  She has been charged with 5 counts of wire fraud.

Read the story here.

Former ICE Intelligence Chief Accused Of Embezzling More Than $180K

James M. Woosley

James M. Woosley, 48, of Northern Virginia has been accused by federal officials of embezzling more than $180,000 from the Immigration and Customs Enforcement ("ICE") agency where he had served as intelligence chief.  According to authorities, Woolsey colluded with several of his subordinates, including his personal assistant, Lateisha M. Rollerson, 38, of Bowie, Maryland, to pilfer funds from the agency.  Prosecutors are seeking the forfeiture of $183,125 from Woosley.  Woosley's scheme spanned nearly three years, from May 2008 to February 2011, according to the charging document.  Rollerson previously entered a plea agreement in which she admitted to embezzling $295,866 which she is required to forfeit.  Other associates involved in the scheme include: Ahmed Adil Abdallat, a former ICE supervisory intelligence research specialist who pleaded guilty and has been sentenced and ordered to repay $116,392.84; William J. Korn, a former intelligence research specialist who has also pleaded guilty; and Stephen E. Henderson,  a former ICE contractor who has pleaded guilty.  Woosley and Rollerson reportedly lived together for a time.  He was a 28 year veteran of the service.

Read the story here.

Read the charging document here.

Update (5/1/12): Woosley has pleaded guilty.

Update (7/18/12): Woosley was sentenced to 20 months in prison.

South Carolina Woman To Plead Guilty To Embezzling Nearly $500K From Hospital Association

Rachel Duncan, 41, of Columbia, South Carolina, has a plea agreement to plead guilty to felony counts of wire fraud and tax evasion in connection with her alleged embezzlement of nearly $500,000 from the South Carolina Hospitality Association where she had been employed as accounting director.  According to authorities, over a period of nearly six years, from 2006 through early 2012, Duncan siphoned $481,000 from the non-profit association by writing checks to herself.  Tom Sponseller, the group's longtime director, committed suicide this past February leaving a note that suggested he was despondent over Duncan's misdeeds on his watch.  Duncan reportedly stole the money to support her online gambling habit.  The plea agreement includes full restitution.

Read the story here, here and here.

Update (4/26/12): Duncan has formally pleaded guilty and appologized for her actions which she blamed on a gambling addiction.  Read an update to the story here and here.

Update (8/14/12): Duncan has been sentenced to 30 months in prison and ordered to pay $367,000 in restitution. 

Pennsylvania Woman Charged With Embezzling nearly $150K

Dorothy J. Miller, 50, of Haverford, Pennsylvania, has been charged with embezzling nearly $150,000 from Summers Hardwood Floors Inc. where she had been employed as manager of administration.  Miller has been charged with multiple felony counts of theft, forgery, identity theft, and conspiracy.  According to authorities, the investigation of Miller's alleged theft began in December 2008 following the death of John Summers, one of the businesses' owners.  Miller is suspected of forging checks to the tune of $98,000 and opening up a $50,000 business line of credit in the owners' names for her own benefit.  Miller's schemes are believed to have spanned about 3 years, beginning in 2005.

Read the story here, here and here.

Illinois Woman Charged With Embezzling More Than $30 Million From Municipality

Rita A. Crundwell, 59, of Dixon, Illinois, has been arrested and charged with embezzling more than $30 million from the small town of Dixon, where she had served as both municipal controller and treasurer for many years.  In what will surely be one of the largest embezzlement cases in modern US history, Crundwell is alleged to have siphoned funds from town coffers into a secret account she controlled for at least six years, totalling $30,236,503.51.  Crundwell reportedly began working for the town in the early 1980s when she was appointed controller and ultimately became one of the few full-time and highly trusted municipal employees, making just $80,000 per year.  She is the owner of Meri-J Ranch, a champion horse breeding farm in Dixon and another in Beloit, Wisconsin.  Federal authorities have charged Crundwell with a single count of wire fraud at this time.  Citizens believed she was simply a very wealthy woman because of her horse farms when in reality, it is believed that Crundwell spent town funds to support a lavish lifestyle, including the horse farms and a $2.1 million custom outfitted motor coach.  The misappropriation was apparently discovered last October while Crundwell was taking her annual four month vacation attending horse shows and running her ranch.  During that time, a fill-in employee came across a suspicious account showing multiple six-figure transactions which led to an FBI investigation.  The FBI has seized the contents of two bank accounts she controlled as well as seven trucks and trailers, three pickup trucks, the motor home and a Ford Thunderbird convertible.  Meanwhile, the financially strapped City of Dixon, with an annual budget of just $8-9 million, has had to close its pool and make other cutbacks in services.  Crundwell faces up to 20 years in prison if convicted on the single wire fraud charge.

Developing...

Read the story here, here and here.

Listen to Chris Marquet who was interviewed on WGN Radio (Chicago) on 4/18/12 regarding this story here.

Update (5/1/12): Crundwell has been indicted on charges that she embezzled more than $53 million since December 1990 from the City of Dixon, Illinois.  This revision of loss magnituded easily places Crundwell's embezzlement in the top 10 in modern US history.  Read an update on the story here.

Update (2/14/13): Crundwell has been sentenced to 19 1/2 years in prison.

Louisiana Woman Charged With Embezzling Nearly $185K From Spa

Angie C. Normand, believed to be in her early 40s, of Lafayette, Louisiana, has been charged with embezzling nearly $185,000 from the Coccolare Spa where she had been employed as a bookkeeper.  According to authorities, over a period of 3 years, from March 2008 until April 21, 2011, Normand diverted funds from the company's checking and payroll accounts.  Norman faces one count of wire fraud filed in a criminal Information.

Read the story here and here.

Update (5/5/12): Normand, now 41, has pleaded guilty to wire fraud charges in connection with her embezzlement of nearly $185,000 from Coccolare Spa.

Update (11/15/12): Normand was sentenced to 37 months in prison and ordered to pay full restitution.

Disbarred North Carolina Attorney Faces Federal Charges For Embezzling $857K From Trust Accounts

Samuel Neill, believed to be in his early 60s, of Hendersonville, North Carolina has now been charged with tax evasion in connection with his embezzlement of some $857,632 from his law firm's trust accounts.  According to authorities, from 2008 through May 2011, Neill siphoned funds for his own benefit and was disbarred for his fraudulent action.  The federal criminal Information alleges that Neill embezzled funds by check and used the money "to improve his lifestyle, make payments to lenders holding unpaid liens, satisfy potential debts and demands related to his business obligations, and additional unknown reasons." 

Read the story here and here.

Update (9/17/12): Neill pleaded guilty five state charges of felony embezzlement in connection with the embezzlement of what is now believed to be $2.5 million.

Illinois Woman Charged With Embezzling As Much As $200K In Pension Fraud Case

Tisa Crawford

Tisa Crawford, 41, of Aurora, Illinois, has been charged with theft over $10,000, wire fraud and computer fraud in connection to a pension fraud scheme that bilked Aon Hewitt out of at least $175,000 and as much as $200,000.  Over a period of about 3 years, beginning in 2009, Crawford is alleged to have created fictional retirees and fraudulently collected pension payments made to their accounts.

Read the story here, here and here.

Hat tip: FraudTalk reader Joe.

Florida Man Sentenced For Embezzling More Than $1.6 Million From Construction Company

Casey Loveall 2003 mugshot

Casey Jay Loveall, 52, of Casselberry, Florida, has been sentenced to 44 months in prison for embezzling $1,611,754.51 from the Hulke Construction Company, LLC where he had been employed as company controller.  According to authorities, over a period of more than 3 years, from 2007 through 2010, Loveall siphoned funds from the company by sending electronic payments intended for vendors and subcontractors to his own accounts.  Loveall, who pleaded guilty to felony wire fraud, has also been ordered to pay full restitution.  Research suggests Loveall has a prior criminal record for fraud.

Read the story here and here.

Texas Woman Pleads Guilty To Embezzling $200K From Credit Union

Mellissa Kay Morris, 48, of Winnsboro, Texas has pleaded guilty to embezzling more than $200,000 from the Pioneer Credit Company where she had been employed as an assistant manager.  According to prosecutors, Morris would use a customer's name, Social Security number and other personal information to create a loan application. She would approve the loan, issue a credit union check in the customer's name, then forge the signature and keep the money.  Morris was indicted in August 2011. 

Read the story here.

Read the DOJ announcement of her indictment here.

Hat tip: FraudTalk reader Joe.

Update (8/21/12): Morris has been sentenced to 27 months in federal prison and ordered to pay restitution in the amount of $108,101.28. 

Missouri Woman Sentenced For Embezzling $880K

Lisa Fran Ervin, 44, of Cape Girardeau, Missouri, has been sentenced to 5 years in prison for embezzling nearly $880,000 from Nordenia USA, a local manufacturing company for which she had been employed as a payroll administrator.  Ervin had pleaded guilty this past January to felony counts of wire fraud and money laundering.  Ervin's scheme, in which she caused herself to receive additional salary pay, reportedly spanned a period of more than 6 years, beginning in February 2005. 

Read the story here and here.

Minnesota Woman Charged With Embezzling $108K From Bank

Carolyn Faye Hampel, 65, of Jackson, Minnesota, has been charged with embezzling some $108,000 from the United Prairie Bank where she had been employed as a "retail operations officer."  According to prosecutors, over a period of 6 1/2 years, from January 2005 to August 2011, Hampel siphoned funds from bank customer accounts.  She has been charged with one count of embezzlement by a bank officer.  She faces up to 30 years in prison if convicted.

Read the story here and here.

Update (4/18/12): Hampel pleaded guilty to one count of embezzlement by a bank officer for embezzling as much as $120,000 from United Prairie Bank.

Update (8/23/12): Hampel was sentenced to one year and a day in prison.  She was also ordered to pay about $130,000 in restitution.

Elderly Disabled Florida Woman Sentenced For Embezzling $161K From Church

Betty Barnes

Betty Barnes, a disabled 78-year old resident of Jacksonville, Florida has pleaded guilty to charges she embezzled $161,000 from the Terry Road Baptist Church where she had served as church accountant.  She has been sentenced to 2 years house arrest and ordered to pay full restitution.  According to authorities, Barnes, who had been employed by the church for 15 years, inflated weekly paychecks and voided other checks that she cashed for her own benefit over a period of more than 5 years, beginning in 2006.  Barnes pleaded guilty last month to charges of schemes to defraud and grand theft of more than $100,000. 

Read the story here.

Illinois Woman Suspected In $400K Embezzlement Case

An unnamed woman from Elmhurst, Illinois is suspected of embezzling some $400,000 over a two year period from Partex Marking Systems, Inc. where she had been employed for 10 years.  Details about the nature of the misappropriation are scant at this time pending the investigation.

Developing...

Read the story here and here.

Former CFO Of SoCal Company Charged With Embezzling More Than $16 Million

Jean Joseph Ibrahim, 33, formerly of Rancho Santa Margarita, California, has been charged with embezzling $16 million from Trustin Technology, Inc., where he had been employed as chief financial officer.  According to federal prosecutors, Ibrahim diverted company funds on multiple occasions to his personal account, as well as an account he controlled to trade in the commodities markets.  Specifically, the criminal complaint alleges Ibrahim made hundreds of wire transfers to his personal accounts and, on occasion, made wire transfers back to the company, netting more than $16 million in company funds.  After an internal investigation, Ibrahim was reportedly confronted by company executives whereby he admitted the fraudulent electronic transfers and a settlement was supposed to have been reached.  However, he fled the country in early 2012, returning in February 2012 and was detained by customs authorities with 40 gold bars and $490,000 in cash in his possession.  Ibrahim also reportedly purchased a villa outside Tehran, Iran, but now he now faces federal prosecution.  Media reports suggest that Ibrahim lost most of the misappropriated funds gambling or in the financial markets.

Read the story here, here and here.

Hat tip: FraudTalk reader Joe.

Comment: This may be the biggest embezzlement of 2012 so far...

Update (4/13/12): Ibrahim has now been formally indicted on two counts of wire fraud.

California Woman Arrested On Charges She Embezzled $1.6 Million

Bette Lenette Dahl

Bette Lenette Dahl, 43, of Riverside, California, has been arrested on charges she embezzled some $1.6 million from Ceramic Tile Works and Designs where she had been employed as a bookkeeper.  According to authorities, Dahl siphoned funds from the company over an unspecified period of time totalling $1,622,500. 

Developing...

Read the story here.

Retired National Guard Colonel In Arizona Sentenced For Embezzling $2.8 Million From Charity

Retired Army National Guard Col. James Eugene Burnes, 66, of Maricopa County, Arizona, has been sentenced to 3 1/2 years in prison for embezzling nearly $2.8 million from the Arizona Department of Emergency and Military Affairs, a non-profit where he had served as resource manager.  According to authorities, over an 8 year period, from 2003 to 2011, Burnes diverted money from the emergency fund and from a fund to help high-school dropouts to help support a gambling habit and to pay his taxes.

Read the story here.

California Woman Sentenced For Embezzling $310K From Local Police Department

Louise Vance-Wasilchin, also known as Mary Wasilchin, 58, of Upland, California, has been sentenced to 32 months in prison for embezzling nearly $310,000 from the Covina Police Department where she had been employed as a records clerk.  According to authorities, over a period of nearly 3 1/2 years, from January 2008 until May 2011, Wasilchin stole proceeds from parking meter money, fine money and vehicle impound fees.  She plead guilty late last year.  Police believe that Wasilchin actually stole more than $340,000, but she admitted to stealing $309,032.  

Read the story here.