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| Seasons Greetings from FraudTalk and Marquet International |
Friday, December 20, 2013
Seasons Greetings From FraudTalk & Marquet International
Thursday, December 12, 2013
Bosses Behaving Badly: Detecting, Deterring, and Mitigating the Risks of Executive Misconduct
If you are in the Boston area, join me at this interesting seminar: Bosses Behaving Badly: Detecting, Deterring, and Mitigating the Risks of Executive Misconduct. I have collaborated with industry experts in computer forensics and employment law to host this event on January 16, 2014.
For a description, go here and to register, go here. There is a modest charge and space is limited to 100 people. I hope to see you there.
For a description, go here and to register, go here. There is a modest charge and space is limited to 100 people. I hope to see you there.
Tuesday, December 10, 2013
Nice Employee Theft Infographic
See the infographic on employee theft created by Aldo Baker: http://bit.ly/ThievingEmployees.
Friday, November 22, 2013
A Busy Day For Embezzlement In The US Yesterday
Lots of Major embezzlement cases in the news yesterday:
Michigan woman pleads guilty to embezzling $148,000 from political consulting
firm:
Former law enforcement official and his wife charged with embezzling over
$100,000 from fire department in upstate New York:
Former athletic director for the Tulsa, Oklahoma public school system receives only 7 months for embezzling $92,000:
Court administrator in Missouri pleads guilty to embezzling about
$140,000 in public funds:
North Carolina Fire official helps himself to $269,000 in municipal funds:
Office manager for medical clinic in Kansas gets “at least
$130,000” and maybe as much as $182,000:
Former Connecticut Tribal exec get only 18 months for embezzling $100,000:
Secretary from Anchorage high school district steals
$135,000 in the "largest heist ever" impacting the Anchorage school district:
Texas man is 5th to plead guilty to conspiracy in diversion of $133 million intended for payroll
taxes:
http://www.seattlepi.com/news/texas/article/Man-pleads-guilty-in-Texas-to-133M-tax-fraud-4998668.php
Former athletic director for the Tulsa, Oklahoma public school system receives only 7 months for embezzling $92,000:
Thursday, October 31, 2013
Private investigator offers a long look at love
From WickedLocal on 10.31.13:
After 30 years working as a private investigator in the corporate world, Wellesley resident Chris Marquet is expanding his business into the romance sector. He admits, though, that there’s little romance that comes with work that involves taking a long, hard look into the backgrounds of potential suitors.
"It’s more self preservation," Marquet said of his new service: CheckOutYourPartner.com, which offers in-depth analysis of clients’ significant others. "It’s geared toward people that want to protect their assets, interests or loved ones."
...
Read the whole article here.
After 30 years working as a private investigator in the corporate world, Wellesley resident Chris Marquet is expanding his business into the romance sector. He admits, though, that there’s little romance that comes with work that involves taking a long, hard look into the backgrounds of potential suitors.
"It’s more self preservation," Marquet said of his new service: CheckOutYourPartner.com, which offers in-depth analysis of clients’ significant others. "It’s geared toward people that want to protect their assets, interests or loved ones."
...
Read the whole article here.
Tuesday, October 29, 2013
Massive $20 Million Embezzlement Alleged In Chicago
See Crain's Chicago Business article today, "The $20 million fraud scheme that almost never ended." Husband and wife doctors allege that their bank, Devon Bank, turned a "blind eye" to a conspiracy that allowed two employees to embezzle some $20 million from their medical practice over a period of about 21 years. The two former employees, also named as defendants in the suit, are identified as Irina Nakhshin and Inna Koganshats.
Wow. Developing...
Wow. Developing...
Monday, October 28, 2013
St. Louis Post Dispatch: Wave of embezzlement cases hits St. Louis region
The St. Louis Post Dispatch published an article today entitled, "Wave of embezzlement cases hits St. Louis region," featuring Marquet International, as excerpted from the article:
... But “St. Louis isn’t alone,” said Chris Marquet, head of corporate investigations firm Marquet International in Wellesley, Mass. Cases of white collar fraud appear to be rising across the country, Marquet said.
While no one maintains a comprehensive database of employee fraud cases, an annual study by Marquet International of major embezzlement cases found that 2012 “was a blockbuster year for employee theft in the United States, accelerating over the shocking pace set over the past couple of years.”
Marquet said he expects the pace to increase in 2013.
The 2012 study found 528 major embezzlement cases, defined as thefts totaling more than $100,000. That was an 11 percent increase from 2011...
Some were greedy, Marquet said. Some had gambling addictions. In many cases, the weak economy seemed to act as a driving force behind these crimes, leading employees to stretch across criminal lines to make ends meet or sustain a lifestyle beyond their means.
“Some perpetrators came to believe they were owed this money or they deserved this money,” Marquet said.....
Read the whole article here.
... But “St. Louis isn’t alone,” said Chris Marquet, head of corporate investigations firm Marquet International in Wellesley, Mass. Cases of white collar fraud appear to be rising across the country, Marquet said.
While no one maintains a comprehensive database of employee fraud cases, an annual study by Marquet International of major embezzlement cases found that 2012 “was a blockbuster year for employee theft in the United States, accelerating over the shocking pace set over the past couple of years.”
Marquet said he expects the pace to increase in 2013.
The 2012 study found 528 major embezzlement cases, defined as thefts totaling more than $100,000. That was an 11 percent increase from 2011...
Some were greedy, Marquet said. Some had gambling addictions. In many cases, the weak economy seemed to act as a driving force behind these crimes, leading employees to stretch across criminal lines to make ends meet or sustain a lifestyle beyond their means.
“Some perpetrators came to believe they were owed this money or they deserved this money,” Marquet said.....
Read the whole article here.
Sunday, October 27, 2013
Washington Post: Inside the hidden world of thefts, scams and phantom purchases at the nation's nonprofits
The Washington Post published an above-the-fold article entitled, Inside the hidden world of thefts, scams and phantom purchases at the nation's nonprofits, which is quite thorough and illuminating. It also happens to include a reference to the 2012 Marquet Report on Embezzlement with an appropriate quote from yours truly.
Read the whole article here.
Read the whole article here.
Wednesday, October 9, 2013
Check Out Your Partner Launched By Marquet International, Ltd.
See www.checkoutyourpartner.com
For
Immediate Release
Contact:
Karen White, Vice President of
Administration
(917) 733-1038 or info@marquetinternational.com
or info@checkoutyourpartner.com
Marquet International launches CheckOutYourPartner.com
– offering exclusive matrimonial investigations and screening service focused
on significant others
Boston
– October 7, 2013 – Marquet International Ltd. announced today that it has launched
CheckOutYourPartner.com, a website through which it offers a battery of
matrimonial investigations service along with a background screening service
for high net-worth individuals seeking to learn more about the track records,
backgrounds and histories of potential spouses and significant others.
Chris Marquet, CEO of Marquet
International commented, “Since 2007 we have provided high-end matrimonial
investigations and due diligence services to exclusive consumers on an ad hoc
basis. With CheckOutYourPartner, we have
now codified the services as a distinct offering for our valued non-commercial clients.”
In matrimonial dispute cases, CheckOutYourPartner
provides a range of investigative services, including:
·
Verifying, determining & documenting
fidelity issues;
·
Identifying and documenting personal problems
and vices;
·
Assessing and tracing assets;
·
Financial investigations and separation analysis;
·
Computer forensic analysis;
·
Developing evidence;
·
Providing ongoing stationary and mobile
monitoring;
·
Risk and threat assessments;
·
Documenting abuse;
·
Providing protective security and consulting; and,
·
Witness development.
KnowYourParnter also provides a high
level vetting service of potential spouses and significant others in response
to the explosion of online dating activity in the US. “If they do it at all, online dating services
do not do an adequate job of screening their members for serious issues such as
criminal histories, financial problems and other risk factors. CheckOutYourPartner assists a discerning
clientele with the vetting process in order to align hearts with minds.”
Unlike the many online database
information aggregators purporting to provide “background investigations,” CheckOutYourPartner
offers “hand crafted” professional investigative services for clients seeking
thorough, verified and accurate information obtained in a legal and discreet
manner. “These days there is a
tremendous amount of information out there online – much of which is irrelevant
or inaccurate – which has to be sifted through.
Nevertheless, this must be augmented with more traditional fact finding
methods as there is no substitute for boots on the ground,” said Marquet.
*
* * * *
About CheckOutYourPartner
CheckOutYourPartner is an exclusive
screening and investigative service for discerning consumer clients seeking to
discreetly learn more about the backgrounds and track records of spouses,
potential spouses and significant others.
CheckOutYourPartner experts also provide a wide range of matrimonial
dispute investigative services, including verifying, determining &
documenting fidelity issues; identifying and documenting personal problems and
vices; assessing assets; conducting financial investigations; providing
computer forensic analysis; developing evidence; ongoing stationary and mobile
monitoring; risk and threat assessments; protective & security consulting services,
documenting abuse; and witness development.
For more information, go to www.checkoutyourpartner.com.
About Marquet international Ltd.
Marquet International
is a professional business investigations, due diligence, litigation support
and security consulting firm, based in Boston.
Led by 30-year veteran industry expert, Chris Marquet, the firm provides
Corporate
Intelligence & Due Diligence services in corporate transactions and to
vet key personnel; Litigation Support
and Corporate Investigation services on behalf of general counsel and law
firms representing clients in matters involving fraud and employee misconduct,
intellectual property disputes, hostile takeovers, asset recovery, electronic
evidence and forensic accounting; and a range of Security Consulting Services. For more information, go to www.marquetinternational.com.
Saturday, September 21, 2013
Judge Rejects Plea Agreement For City Councilman In $304K Embezzlment Case
Judge rejects embezzlement deal for former
Glendale councilman (Los
Angeles Times)
A judge on Friday rejected a plea deal reached
between prosecutors and a former Glendale councilman accused of embezzling
more than $304,000, calling the agreement a "slap on the wrist" for someone in a position of public trust.
Los Angeles Superior Court Judge Stephen Marcus said former Councilman John Drayman should go to jail if found guilty of the embezzlement, perjury and tax fraud charges, rejecting a deal that would have exchanged a guilty plea for community service and restitution.
Drayman is now scheduled to begin his criminal trial in November...
Wednesday, September 11, 2013
Another One For The Resume Liar's Club: Elizabeth O'Bagy
“The Institute for the Study of War has learned and confirmed that, contrary to her representations, Ms. Elizabeth O’Bagy does not in fact have a Ph.D. degree from Georgetown University,” the institute said in a statement. “ISW has accordingly terminated Ms. O’Bagy’s employment, effective immediately.” O'Bagy's article was relied upon by Secretary of State Kerry to promote an attack on the Assad regime in Syria for reportedly using chemical weapons.
Read the story here: http://www.politico.com/story/2013/09/wall-street-journal-elizabeth-obagy-fired-96637.html
Developing...
Read the story here: http://www.politico.com/story/2013/09/wall-street-journal-elizabeth-obagy-fired-96637.html
Developing...
Friday, August 9, 2013
Utah Woman Pleads Guilty To Embezzling $145K; Former CFO May Have Stolen As Much As $1 Million
From The Salt Lake Tribune:
Pool Cover Specialists — you can guess what this West Jordan company makes — set a sales record last year. But it did so after climbing out of a hole that someone else dug — one so deep that it could have killed the business.
"We broke a 29-year company record in 2012, even after we caught our CFO (chief financial officer) with her hand in the proverbial cookie jar," said Bruce Grogg, Pool Cover's CEO.
Last week, Penny Thurman pleaded guilty in 3rd District Court to one charge of theft by deception and a second charge of unlawful use of a credit card — both second-degree felonies. She admitted stealing $145,000 over a period of more than two years. Gregg said the amount may be a lot more, as much as $750,000 to $1 million.
"That was all we were able to prove," he said.
The thefts began just four weeks after Thurman was hired in 2009 and continued until March 2012. Grogg said Thurman had complete control over the accounting department. She misused company credit cards, set up double payrolls and paid vendors who didn't exist.
"She had everybody fooled, including our auditors. We trusted her 100 percent," Grogg said.
...
Pool Cover Specialists — you can guess what this West Jordan company makes — set a sales record last year. But it did so after climbing out of a hole that someone else dug — one so deep that it could have killed the business.
"We broke a 29-year company record in 2012, even after we caught our CFO (chief financial officer) with her hand in the proverbial cookie jar," said Bruce Grogg, Pool Cover's CEO.
Last week, Penny Thurman pleaded guilty in 3rd District Court to one charge of theft by deception and a second charge of unlawful use of a credit card — both second-degree felonies. She admitted stealing $145,000 over a period of more than two years. Gregg said the amount may be a lot more, as much as $750,000 to $1 million.
"That was all we were able to prove," he said.
The thefts began just four weeks after Thurman was hired in 2009 and continued until March 2012. Grogg said Thurman had complete control over the accounting department. She misused company credit cards, set up double payrolls and paid vendors who didn't exist.
"She had everybody fooled, including our auditors. We trusted her 100 percent," Grogg said.
...
Thursday, August 8, 2013
Former Illinois Media Exec Pleads Guilty To Embezzling $264K
From the Chicago Tribune on 6/13/13:
A former Tribune Co. executive pleaded guilty Wednesday in federal court to mail fraud, admitting she stole $264,000 in commissions meant for the company.
Stephanie Pater, 39, had drawn the ire of a federal judge early this year when she failed to appear in court after she was charged.
Pater, a former director of real estate for Tribune Co., left the company in 2010 to form her own real estate management business. Tribune Co. hired Pater to oversee its real estate holdings for a monthly fee.
Pater admitted that she stole the $264,000 by creating a fake contract with Tribune Co. that improperly directed commissions from a real estate brokerage business to her company, not Tribune Co. The thefts took place from March to September 2010, prosecutors said.
...
A former Tribune Co. executive pleaded guilty Wednesday in federal court to mail fraud, admitting she stole $264,000 in commissions meant for the company.
Stephanie Pater, 39, had drawn the ire of a federal judge early this year when she failed to appear in court after she was charged.
Pater, a former director of real estate for Tribune Co., left the company in 2010 to form her own real estate management business. Tribune Co. hired Pater to oversee its real estate holdings for a monthly fee.
Pater admitted that she stole the $264,000 by creating a fake contract with Tribune Co. that improperly directed commissions from a real estate brokerage business to her company, not Tribune Co. The thefts took place from March to September 2010, prosecutors said.
...
Former General Manager Of Illinois Company Charged With Embezzling More Than $2 Million
From the Chicago Tribune:
A longtime former general manager of a west suburban chemical company has been charged with embezzling more than $2 million, in part to pay off credit card bills and remodel her kitchen, Cook County prosecutors said Thursday.
Kathleen Barth was fired as general manager at Kraft Chemical Co. after the thefts were discovered a year ago, according to a Circuit Court lawsuit filed by the company to recover the losses.
According to the lawsuit and prosecutors, Barth was paid $65,000 a year but secretly inflated her compensation to as much as $286,000, disguising the additional money as bonuses and commissions.
She also electronically transferred about $990,000 from the company's checking account to pay off her personal credit cards, prosecutors alleged. According to the lawsuit, those payments to her American Express card totaled as much as $40,000 in a single month.
Prosecutors charged that Barth also stole from Kraft by issuing unauthorized company checks directly to herself and having the company issue checks to contractors to pay for work at her Chicago home. She spent as much as $91,000 in company funds to remodel the kitchen, according to the lawsuit.
Barth, 56, was arrested Wednesday night on a warrant that set her bail at $200,000. She is being held in Cook County Jail until a hearing Friday at which prosecutors intend to seek an increase in the bail amount.
...
Barth, who joined the company in April 2005, grew bolder with each year she got away with the thefts, according to the lawsuit. She allegedly inflated her salary to $101,500 in 2006 with the phony bonuses and commissions. By 2011, her salary had soared to $286,000 as part of the scheme, the lawsuit alleged. In that way, Barth stole more than $840,000, prosecutors charged.
She also used company money to pay her personal Citi Card and American Express credit cards, sometimes tens of thousands of dollars at a time. The lawsuit alleged that Barth disguised electronic transfers on company paperwork by referring to them as "profit sharing" and "miscellaneous" expenses.
...
A longtime former general manager of a west suburban chemical company has been charged with embezzling more than $2 million, in part to pay off credit card bills and remodel her kitchen, Cook County prosecutors said Thursday.
Kathleen Barth was fired as general manager at Kraft Chemical Co. after the thefts were discovered a year ago, according to a Circuit Court lawsuit filed by the company to recover the losses.
According to the lawsuit and prosecutors, Barth was paid $65,000 a year but secretly inflated her compensation to as much as $286,000, disguising the additional money as bonuses and commissions.
She also electronically transferred about $990,000 from the company's checking account to pay off her personal credit cards, prosecutors alleged. According to the lawsuit, those payments to her American Express card totaled as much as $40,000 in a single month.
Prosecutors charged that Barth also stole from Kraft by issuing unauthorized company checks directly to herself and having the company issue checks to contractors to pay for work at her Chicago home. She spent as much as $91,000 in company funds to remodel the kitchen, according to the lawsuit.
Barth, 56, was arrested Wednesday night on a warrant that set her bail at $200,000. She is being held in Cook County Jail until a hearing Friday at which prosecutors intend to seek an increase in the bail amount.
...
Barth, who joined the company in April 2005, grew bolder with each year she got away with the thefts, according to the lawsuit. She allegedly inflated her salary to $101,500 in 2006 with the phony bonuses and commissions. By 2011, her salary had soared to $286,000 as part of the scheme, the lawsuit alleged. In that way, Barth stole more than $840,000, prosecutors charged.
She also used company money to pay her personal Citi Card and American Express credit cards, sometimes tens of thousands of dollars at a time. The lawsuit alleged that Barth disguised electronic transfers on company paperwork by referring to them as "profit sharing" and "miscellaneous" expenses.
...
Florida Woman Sentenced For Embezzling Nearly $7 Million From Health Concern
From the Miami Herald on 6.12.13:
The community knew Kathryn Abbate as the leader of a Miami Beach-based clinic that provides vital healthcare to the poor and uninsured.
Secretly, her attorney and prosecutors say she was a gambler, drug addict and thief, raiding almost $7 million from the Miami Beach Community Health Center to support her habits.
For that, a federal judge on Wednesday sentenced Abbate to 42 months in prison -- but not before her attorney Bruce Lyons spun a tale of a deeply troubled woman.
He called it a “tale of two Kathryns.”
According to Lyons: There were long nights playing slots at the Seminole Hard Rock Hotel and Casino. Bundles of cash for unnamed politicians -- some of it surreptitiously left under a raincoat. Secret payments to settle sexual harassment allegations against a clinic employee. Another $50,000 went to someone’s wedding.
“I accept the responsibility for my conduct,” Abbate told Judge Marcia Cooke, “because I am responsible.”
She added: “I am 64-years-old. Not in the greatest of health. And I am petrified...I’m just praying that you’ll consider my lifetime of service.”
Lyons said his client didn’t live a lavish lifestyle, but she stole to secretly feed her addictions. ... The ill-gotten money flowed from unearned leave time paid out to Abbate, as well as 800 checks she paid to herself from 2008 until she was caught in 2012, according to prosecutors. She claimed the money was for “community development,” and despite offering no back up documentation, the expenses passed the examination of auditors year after year.
The health center has sued the companies responsible for looking over the center’s books, and three people quit or were fired after news broke of Abbate’s embezzlement -- which the center made public by contacting The Miami Herald. ... Abbate pled guilty in March and faced up to 10 years in prison. She received a lighter sentence in exchange for cooperating with authorities. ...
The community knew Kathryn Abbate as the leader of a Miami Beach-based clinic that provides vital healthcare to the poor and uninsured.
Secretly, her attorney and prosecutors say she was a gambler, drug addict and thief, raiding almost $7 million from the Miami Beach Community Health Center to support her habits.
For that, a federal judge on Wednesday sentenced Abbate to 42 months in prison -- but not before her attorney Bruce Lyons spun a tale of a deeply troubled woman.
He called it a “tale of two Kathryns.”
According to Lyons: There were long nights playing slots at the Seminole Hard Rock Hotel and Casino. Bundles of cash for unnamed politicians -- some of it surreptitiously left under a raincoat. Secret payments to settle sexual harassment allegations against a clinic employee. Another $50,000 went to someone’s wedding.
“I accept the responsibility for my conduct,” Abbate told Judge Marcia Cooke, “because I am responsible.”
She added: “I am 64-years-old. Not in the greatest of health. And I am petrified...I’m just praying that you’ll consider my lifetime of service.”
Lyons said his client didn’t live a lavish lifestyle, but she stole to secretly feed her addictions. ... The ill-gotten money flowed from unearned leave time paid out to Abbate, as well as 800 checks she paid to herself from 2008 until she was caught in 2012, according to prosecutors. She claimed the money was for “community development,” and despite offering no back up documentation, the expenses passed the examination of auditors year after year.
The health center has sued the companies responsible for looking over the center’s books, and three people quit or were fired after news broke of Abbate’s embezzlement -- which the center made public by contacting The Miami Herald. ... Abbate pled guilty in March and faced up to 10 years in prison. She received a lighter sentence in exchange for cooperating with authorities. ...
California Woman Sentenced For Embezzling Some $1.2 Million From Farming Concern
From the Fresno Bee on 6/12/13:
A 53-year-old Corcoran woman was sentenced to 6 years and 8 months in state prison Tuesday after she was convicted of embezzling $1.2 million from a farm company, the Tulare County District Attorney's Office said.
Lisa Chambers Trujillo, who was a secretary for a farming company from 2007 to 2012, wrote checks to herself from the business' bank account and the owner's personal account. Trujillo pleaded guilty on May 8 to felony grand theft and felony elder abuse.
A 53-year-old Corcoran woman was sentenced to 6 years and 8 months in state prison Tuesday after she was convicted of embezzling $1.2 million from a farm company, the Tulare County District Attorney's Office said.
Lisa Chambers Trujillo, who was a secretary for a farming company from 2007 to 2012, wrote checks to herself from the business' bank account and the owner's personal account. Trujillo pleaded guilty on May 8 to felony grand theft and felony elder abuse.
Former Virginia Restauranteur Pleads Guilty To Embezzling Some $200K From 2 Bookkeeping Clients
From the Daily Progress on 6.11.13:
About three years after abruptly closing his Belmont eatery and fleeing the Charlottesville area, former restaurateur James Baldi has pleaded guilty to embezzling about $200,000 from two Albemarle County bookkeeping clients.
Baldi, 49, entered into an agreement Tuesday with county prosecutors that calls for him to plead guilty to five felony embezzlement charges: four in Albemarle and one in Charlottesville, which he is scheduled to appear in court for next month.
...
"[Baldi] is very anxious to make restitution and set things right," Goodman said.
Baldi still owes about $155,000 to Wood Grill Buffet's parent company and $23,700 to Duraclean, according to court records.
Baldi's alleged crimes stretch back to 2008, nearly a year and a half before a "closed for vacation" sign went up on the former Bel Rio restaurant and he disappeared. He was not indicted on the first of those charges until about 5 months after he left the area, according to court records.
His company, Bel Rio LLC, was dissolved in December 2010 on the same day a Charlottesville circuit judge awarded his former restaurant partner, Gareth Weldon, $45,900 in damages and court costs.
Weldon sued Baldi for breaching his fiduciary duty and conversion, or, making unilateral decisions in a way that deprived Weldon of his stake in their shared property, according to court records.
...
Kansas Woman Sentenced For Not Paying Taxes On Nearly $2 Million In Funds She Embezzled
From the US DOJ:
...
Teresa Joyce Moore, 65, Kansas City, Mo., was sentenced to 33 months in federal prison. She pleaded guilty to one count of filing false income tax returns. In her plea, she admitted the crime occurred while she was working for Big W of Kansas City, Kan., a family run business specializing in manufacturing expandable polystyrene molding, processing and cutting equipment. She was a bookkeeper and officer manager with duties that included invoicing, tracking payroll and general bookkeeping.
In late 2007, the owners of Big W realized that Moore had defrauded the company. She created false invoices from legitimate vendors and prepared checks payable to the vendors. Then she created checks for the same amount payable to herself or her credit card company. When the checks with the forged signature cleared the bank and was returned to Big W., Moore hid them and put the checks payable to the legitimate vendor in Big W’s records.
Moore used embezzled funds to purchase homes, furniture, appliances and other items. On her 2006 federal tax return she reported income of $31,990. In fact, she had received income of more than $451,000 through her embezzlement scheme. On her 2007 federal tax return, she reported an income of $30,881. She did not report more than $507,000 she received from her embezzlement in 2007. Moore embezzled a total of nearly $2 million while working for Big W.
...
...
Teresa Joyce Moore, 65, Kansas City, Mo., was sentenced to 33 months in federal prison. She pleaded guilty to one count of filing false income tax returns. In her plea, she admitted the crime occurred while she was working for Big W of Kansas City, Kan., a family run business specializing in manufacturing expandable polystyrene molding, processing and cutting equipment. She was a bookkeeper and officer manager with duties that included invoicing, tracking payroll and general bookkeeping.
In late 2007, the owners of Big W realized that Moore had defrauded the company. She created false invoices from legitimate vendors and prepared checks payable to the vendors. Then she created checks for the same amount payable to herself or her credit card company. When the checks with the forged signature cleared the bank and was returned to Big W., Moore hid them and put the checks payable to the legitimate vendor in Big W’s records.
Moore used embezzled funds to purchase homes, furniture, appliances and other items. On her 2006 federal tax return she reported income of $31,990. In fact, she had received income of more than $451,000 through her embezzlement scheme. On her 2007 federal tax return, she reported an income of $30,881. She did not report more than $507,000 she received from her embezzlement in 2007. Moore embezzled a total of nearly $2 million while working for Big W.
...
Tennessee Man Charged With Embezzling Nearly $100K From Equipment Company
From the Kingsport Times-News on 6/10/13:
Kingsport man contracted to sell Snap-On equipment has been arrested after allegedly failing to compensate the company for nearly $100,000 in merchandise.
Kevin Scott Hamilton, 41, of 5110 Springview St., was charged Wednesday with felony embezzlement and theft over $60,000. According to police and court records Hamilton is the owner of Hamilton Equipment Solutions, LLC, located at 116 Regional Park Drive.
...
The Snap-On representative claimed Hamilton sold the items to multiple third parties, but failed to compensate Snap-On for the merchandise. Kingsport Police Det. Monica Swayze says the company has had multiple correspondences with Hamilton regarding the outstanding balance — tallied at $93,199.81 — but had been unable to collect the money.
...
Kingsport man contracted to sell Snap-On equipment has been arrested after allegedly failing to compensate the company for nearly $100,000 in merchandise.
Kevin Scott Hamilton, 41, of 5110 Springview St., was charged Wednesday with felony embezzlement and theft over $60,000. According to police and court records Hamilton is the owner of Hamilton Equipment Solutions, LLC, located at 116 Regional Park Drive.
...
The Snap-On representative claimed Hamilton sold the items to multiple third parties, but failed to compensate Snap-On for the merchandise. Kingsport Police Det. Monica Swayze says the company has had multiple correspondences with Hamilton regarding the outstanding balance — tallied at $93,199.81 — but had been unable to collect the money.
...
Former Travel Agency Owner In Wisconsin Sentenced For Embezzling $270K In Customer Funds
From the Fond du Lac Reporter on 7/29/13:
Victims that had their dream vacations wrested away from them by the former owner of Carol’s Tours packed the courtroom Monday morning, eager for their long awaited day in court.
Deborah Paul, 58, was found guilty of felony theft in October 2012. However, several delays due to Paul’s “health problems” forced several postponements over the past nine months, taxing the patience of victims.
...
Paul, the owner of a defunct Beaver Dam travel agency was found guilty of bilking 243 travelers out of money paid for their dream vacations and travel insurance premiums. Judge Andrew Bissonnette sentenced Paul to 27 months in prison followed by three years of extended supervision upon her release. He also ordered seven years of probation and that Paul pay her victims more than $191,000 in restitution. Bissonnette granted Paul 138 days of pre-sentence jail credit.
State Department of Justice Prosecutor Richard Dufour said Paul, who closed Carol's Tours in 2007, took in more than $270,000 in trip payments and $15,000 in useless travel insurance premiums. State investigators found she paid numerous personal and family bills, including mortgage and utility payments, with the money, according to the court complaint.
Paul's former officer manager, Lisa Hopper, was sentenced to 18 months in prison after she was found guilty of stealing more than $97,000 from the business.
...
Victims that had their dream vacations wrested away from them by the former owner of Carol’s Tours packed the courtroom Monday morning, eager for their long awaited day in court.
Deborah Paul, 58, was found guilty of felony theft in October 2012. However, several delays due to Paul’s “health problems” forced several postponements over the past nine months, taxing the patience of victims.
...
Paul, the owner of a defunct Beaver Dam travel agency was found guilty of bilking 243 travelers out of money paid for their dream vacations and travel insurance premiums. Judge Andrew Bissonnette sentenced Paul to 27 months in prison followed by three years of extended supervision upon her release. He also ordered seven years of probation and that Paul pay her victims more than $191,000 in restitution. Bissonnette granted Paul 138 days of pre-sentence jail credit.
State Department of Justice Prosecutor Richard Dufour said Paul, who closed Carol's Tours in 2007, took in more than $270,000 in trip payments and $15,000 in useless travel insurance premiums. State investigators found she paid numerous personal and family bills, including mortgage and utility payments, with the money, according to the court complaint.
Paul's former officer manager, Lisa Hopper, was sentenced to 18 months in prison after she was found guilty of stealing more than $97,000 from the business.
...
Former University Employee Charged With Embezzling $367,901 Over 6 Year Period
From the Wall Street Journal on 6/8/13:
A grand jury has indicted a former Rensselaer Polytechnic Institute employee on charges she stole more than $350,000 from the university.
Rensselaer County District Attorney Richard McNally says Christine Dickson faces a felony count of second-degree grand larceny. Authorities say she used an RPI-issued credit card to steal $367,901 between 2003 and 2009.
The 55-year-old Dickson was arrested three years ago but had been in plea negotiations since. The grand jury indicted her Friday.
...
Dickson is accused of using the card to get $82,000 in cash advances, $15,000 in car rentals, $4,900 for cruise and airline travel and $1,500 in charges to Amazon.com. She also funded some trips to casinos.
A grand jury has indicted a former Rensselaer Polytechnic Institute employee on charges she stole more than $350,000 from the university.
Rensselaer County District Attorney Richard McNally says Christine Dickson faces a felony count of second-degree grand larceny. Authorities say she used an RPI-issued credit card to steal $367,901 between 2003 and 2009.
The 55-year-old Dickson was arrested three years ago but had been in plea negotiations since. The grand jury indicted her Friday.
...
Dickson is accused of using the card to get $82,000 in cash advances, $15,000 in car rentals, $4,900 for cruise and airline travel and $1,500 in charges to Amazon.com. She also funded some trips to casinos.
Texas Woman Pleads Guilty To Embezzling $772K
From the Terrell Tribune on 6/9/13:
A Kaufman woman is facing prison time after pleading guilty on Wednesday in connection with embezzling more than $750,000 from her employer.
Marci Johnson, 46, appeared in federal court and pleaded guilty before U.S. District Judge Jorge A. Solis to one count of mail fraud, stemming from her embezzlement of more than $772,000.
A Kaufman woman is facing prison time after pleading guilty on Wednesday in connection with embezzling more than $750,000 from her employer.
Marci Johnson, 46, appeared in federal court and pleaded guilty before U.S. District Judge Jorge A. Solis to one count of mail fraud, stemming from her embezzlement of more than $772,000.
Wisconsin Woman Accused Of Embezzling $500K
From WSAW:
An Athens woman is suspected of stealing more than $500,000 from a Wausau business where she worked for nearly 20 years.
Police say Michelle Walters, 39, embezzled the money from Northwestern Wisconsin Associates, Inc., a retirement plan company.
Walters has not yet been charged, but could face felony theft charges.
According to police reports, Walters confessed to stealing the money from NWA over the last six years to both her employer and police.
NWA president and owner, Matthew Stifler, found out about the scheme when the company's accountant noticed in the company ledger there had been a donation made to Arts Bash.
The accountant thanked Stifler for making the donation, since he had been involved in Arts Bash, but Stifler said he hadn't made a donation in years.
They got the original check from the company's bank, and found it was written to Michelle Walters, signed by Michelle Walters and endorsed by Michelle Walters.
That led Stifler to go through records to find dozens of unauthorized checks written by the suspect. For each unauthorized check Walters would list a different name as payee in the ledger, which was later entered into a computer.
Many checks were actually written to credit card companies, utilities, travel agents, and other businesses for Walters' personal gain.
Wausau Police Detective Jeff Strobach says Walters, who made $88,000 in 2011, admitted to the crime.
...
She also confessed to stealing the money and said she has a huge credit card problem. When asked what kinds of things she spent the money on, Walters said lots of little things like clothes, things for her kids and her husband.
Walters also said she'd put her home up for sale to pay back the company.
...
An Athens woman is suspected of stealing more than $500,000 from a Wausau business where she worked for nearly 20 years.
Police say Michelle Walters, 39, embezzled the money from Northwestern Wisconsin Associates, Inc., a retirement plan company.
Walters has not yet been charged, but could face felony theft charges.
According to police reports, Walters confessed to stealing the money from NWA over the last six years to both her employer and police.
NWA president and owner, Matthew Stifler, found out about the scheme when the company's accountant noticed in the company ledger there had been a donation made to Arts Bash.
The accountant thanked Stifler for making the donation, since he had been involved in Arts Bash, but Stifler said he hadn't made a donation in years.
They got the original check from the company's bank, and found it was written to Michelle Walters, signed by Michelle Walters and endorsed by Michelle Walters.
That led Stifler to go through records to find dozens of unauthorized checks written by the suspect. For each unauthorized check Walters would list a different name as payee in the ledger, which was later entered into a computer.
Many checks were actually written to credit card companies, utilities, travel agents, and other businesses for Walters' personal gain.
Wausau Police Detective Jeff Strobach says Walters, who made $88,000 in 2011, admitted to the crime.
...
She also confessed to stealing the money and said she has a huge credit card problem. When asked what kinds of things she spent the money on, Walters said lots of little things like clothes, things for her kids and her husband.
Walters also said she'd put her home up for sale to pay back the company.
...
Alaska Man Sentenced For Role In $500K Embezzlement Scheme From Seafood Company
From the Seattle Times on 6/7/13:
A Kodiak man will serve 28 months in a federal prison for taking part in a scheme to embezzle nearly $500,000 from the Trident Seafoods plant in Kodiak.
The Kodiak Daily Mirror reports (http://is.gd/AMhPD7) 31-year-old Jeremy Smith was sentenced in U.S. District Court this week for two counts of wire fraud.
The missing funds were discovered shortly after 32-year-old Isairis Wolfe was fired as the plant's bookkeeper in 2010.
Federal authorities allege she wrote 52 checks over a 2 1/2 year period to four people and one of their underage sons.
Also indicted were Anne Wilson, who is also known as Anne Sorio, of Kent, Wash.; Valerie Olivares, of Corpus Christi, Texas, and Jamie Fathke of Kodiak.
All have been given prison terms except Wolfe, who will be sentenced Tuesday.
A Kodiak man will serve 28 months in a federal prison for taking part in a scheme to embezzle nearly $500,000 from the Trident Seafoods plant in Kodiak.
The Kodiak Daily Mirror reports (http://is.gd/AMhPD7) 31-year-old Jeremy Smith was sentenced in U.S. District Court this week for two counts of wire fraud.
The missing funds were discovered shortly after 32-year-old Isairis Wolfe was fired as the plant's bookkeeper in 2010.
Federal authorities allege she wrote 52 checks over a 2 1/2 year period to four people and one of their underage sons.
Also indicted were Anne Wilson, who is also known as Anne Sorio, of Kent, Wash.; Valerie Olivares, of Corpus Christi, Texas, and Jamie Fathke of Kodiak.
All have been given prison terms except Wolfe, who will be sentenced Tuesday.
Thursday, July 25, 2013
Recent Trends In Employee Theft
The following article I wrote was published in KYC360 - The Online AML Community:
As the economy continues to bump along five years after the 2008 economic crash in the U.S., major embezzlement cases have never been more prevalent. Our statistics, based upon Marquet International data compiled over the past five years of U.S. embezzlement cases of more than $100,000, reveal that 2012 was a banner year for employee theft with 2013 running apace of last year. Since our data also shows that the average case spans nearly five years, we believe that the current pace of major embezzlements will not decline any time soon. The frauds that began for economic purposes immediately after the downturn are now just surfacing.
As the economy continues to bump along five years after the 2008 economic crash in the U.S., major embezzlement cases have never been more prevalent. Our statistics, based upon Marquet International data compiled over the past five years of U.S. embezzlement cases of more than $100,000, reveal that 2012 was a banner year for employee theft with 2013 running apace of last year. Since our data also shows that the average case spans nearly five years, we believe that the current pace of major embezzlements will not decline any time soon. The frauds that began for economic purposes immediately after the downturn are now just surfacing.
Anecdotal evidence suggests that many embezzlers steal from their employer with the initial view of their action as "just a loan" and that they "intend to pay it back". However, we have learned that most employee thefts typically start out small and grow in magnitude over time as the fraudster becomes emboldened for having not been caught, and realizing the ease with which the scheme(s) worked. What started out as a "one time" $5,000 payroll fraud scheme ends up being half a million dollar fraud six years later. Likewise what began as a $1,500 credit card abuse becomes a $150,000 embezzlement several years down the road.
Another noteworthy finding from the data is that the apparent motivation for many embezzlers who steal significant amounts from their employer is not to alleviate personal economic problems, but rather to maintain a lifestyle far beyond what they would otherwise enjoy. Many of the schemes may have begun for economic purposes, but the motivation factor quickly morphs into greed or entitlement and somehow the perpetrators are able to justify their actions.
Major embezzlement schemes are not complex, as 2012 Marquet Report on Embezzlement demonstrates. Indeed, our five year analysis showed that the most common scheme employed was the forgery or issuance of fraudulent checks (35.5%), followed by theft of conversion of cash receipts (21.2%) and then unauthorized electronic transfers (12.2%). Not surprisingly, at the height of their misappropriations (usually at the time they are discovered), major embezzlers typically employ more than one scheme in order to fleece their employer.
Contrary to conventional wisdom, our data consistently shows that most perpetrators in large-scale employee theft cases are women. This could be explained by the predominance of females working within finance departments, which is where most of these cases occur. Our five year data, which includes more than 2,000 major embezzlement cases in the US, reveals that over 62% of the perpetrators were women however, interestingly, the men in the data stole at more than double the rate of women.
One surprising result of our analysis is the fact that less than 5% of the perpetrators of these major frauds had prior criminal fraud backgrounds. Therefore background screening, while helpful for many reasons, will only weed out a small segment of potential embezzlers.
Another motivating factor for perpetrators is the clear link we have found between employee theft and gambling. In the cases where an embezzler's motivating factor was known, nearly one third of the cases involved a gambling issue. Not surprisingly, the vast majority of the cases occurred in states where gambling is broadly legalized and casinos are prevalent.
Finally, we have consistently found that the victim organizations are most commonly financial services entities, followed by government entities and then non-profits or religious organizations. We can understand why most major embezzlement cases involve financial firms since, “that is where the money is,” as Willy Sutton, the career bank robber from the 1930's supposedly told a reporter in response to being asked why he robbed banks. Non-profits and religious organizations are also understandable due to their typical weak financial controls and lack of financial oversight. Perhaps governmental bodies simply breed waste, fraud and abuse, accounting for why these are such common victims of employee theft.
We know that there will always be fraud and theft in organizations large and small. However, with proper controls and oversight, these cases can be minimized or stopped short or otherwise mitigated.
Thursday, July 18, 2013
Center for Strategic Business Integrity Formed
For
Immediate Release
(301) 865-1197 or (Info@CenterSBI.com)
The Center for
Strategic Business Integrity Announces Formation
Ijamsville,
MD – July 15, 2013
– The Center for Strategic Business Integrity (“CSBI”) announces its formation
today in response to numerous corporate oversight & compliance failures in
recent years. The CSBI’s mission is to
equip current & prospective board members and their key advisors with
principles & skills to drive robust oversight of any corporate enterprise
by deterring, detecting, responding and resolving material corporate negligence
in strategic decision making as well as business irregularities &
corruption before the damage is done.
Specifically the CSBI is:
The CSBI has
created the professional designation, “Certified
Board Advisor” or CBA, for appropriately qualified members. CBAs are current or potential board leaders
as well as key board advisors who have demonstrated by education, experience
and proven accomplishments that they are equipped with the skills and ethics necessary
to direct a modern corporate enterprise.
Verna added,
“The potential effects of non-routine, high impact business irregularities,
abuse of executive power and poor, sometimes negligent strategic decision
making are potentially catastrophic. As
a Nation, we can no longer tolerate or afford weak boardroom leadership. The Center’s mission is to begin the long but
important process of strengthening our next generation of corporate board
leaders.”
Contact:
Kelly Mackenzie, Director of Communications(301) 865-1197 or (Info@CenterSBI.com)
·
A center for preparing &
certifying board members & key advisors for their critical role;
·
A center for training and education;
·
A center for advocacy – promoting
effective corporate oversight;
·
A center for research – developing insight
into the successes & failures of corporate oversight; and,
·
A center for strategy development –
formulating principles & supporting tools for more effective corporate
oversight.
The CSBI’s
leadership consists of John L. Verna, CEO & Executive Managing Director;
Walter J. Sarkees, Managing Director & Chairman of the Board of Advisors;
and Christopher T. Marquet, Managing Director & Director of Research. In announcing the formation of the CSBI,
Verna said, “We are extremely excited about the creation of the Center for Strategic
Business Integrity. The need for more
professionalized, better skilled corporate directors and related trusted advisors
is long past overdue. The stakes of the
global economic game are simply too high and we must have the best leadership
in the corporate boardroom.”
About the Center for Strategic Business
Integrity
Center for StrategicBusiness Integrity (CSBI) is a research, education,
advocacy and certification (the Certified Board Advisor) organization dedicated
to developing effective corporate oversight strategies and skills for current
and future corporate board directors as well as their key advisors.
Friday, June 21, 2013
Meet Us At The ACFE Conference In Las Vegas Next Week
We will be in attendance at the annual Association of Certified Fraud Examiner's global fraud conference representing the newly formed Center for Strategic Business Integrity and Marquet International. We will be handing out copies of our recently issued 2012 Marquet Report on Embezzlement, among other things. All you CFEs and CFE's to be who are attending please drop by our booth.
Hope to see you there,
Chris
Hope to see you there,
Chris
Thursday, June 6, 2013
2 New Jersey Women Plead Guilty To Conspiring To Embezzle $779K From Law Firm
From The Associated Press on 6/6/13:
Two women who worked at a central New Jersey law firm have been sentenced to prison after admitting they embezzled nearly $800,000 from their employer.
Marla Deptula of Sayreville received a 20-month sentence and Rose Crabbe of Plainfield received 15 months in federal court in Trenton on Thursday.
Both women had pleaded guilty to conspiracy to commit mail fraud. Deptula also pleaded guilty to subscribing to a false tax return.
They admitted writing checks to themselves from the Edison-based law firm's accounts and using the money to pay credit card bills, taxes and child care expenses. The U.S. Attorney's Office alleges hey tried to hide the scheme by altering the law firm's accounting records.
Deptula will be required to pay $705,000 and Crabbe will have to pay $74,000 in restitution.
Two women who worked at a central New Jersey law firm have been sentenced to prison after admitting they embezzled nearly $800,000 from their employer.
Marla Deptula of Sayreville received a 20-month sentence and Rose Crabbe of Plainfield received 15 months in federal court in Trenton on Thursday.
Both women had pleaded guilty to conspiracy to commit mail fraud. Deptula also pleaded guilty to subscribing to a false tax return.
They admitted writing checks to themselves from the Edison-based law firm's accounts and using the money to pay credit card bills, taxes and child care expenses. The U.S. Attorney's Office alleges hey tried to hide the scheme by altering the law firm's accounting records.
Deptula will be required to pay $705,000 and Crabbe will have to pay $74,000 in restitution.
Texas Woman Pleads Guilty To Embezzling $773K; Supports Lavish Lifestyle
From the Associated Press on 6/6/13:
...
Prosecutors in Dallas say 46-year-old Marci Johnson of Kaufman pleaded guilty Wednesday to mail fraud.
Johnson faces up to two years in prison as part of the plea deal and also could be required to repay nearly $773,000 to Spaeth Communications of Dallas. Sentencing is pending.
Prosecutors say Johnson was the chief administrative officer for the business communications company and had access to company checks and credit cards.
Investigators say she used corporate funds for personal dining, shopping and entertainment. Prosecutors say Johnson also made false entries in the company's accounting software to help cover her fraudulent purchases.
...
Prosecutors in Dallas say 46-year-old Marci Johnson of Kaufman pleaded guilty Wednesday to mail fraud.
Johnson faces up to two years in prison as part of the plea deal and also could be required to repay nearly $773,000 to Spaeth Communications of Dallas. Sentencing is pending.
Prosecutors say Johnson was the chief administrative officer for the business communications company and had access to company checks and credit cards.
Investigators say she used corporate funds for personal dining, shopping and entertainment. Prosecutors say Johnson also made false entries in the company's accounting software to help cover her fraudulent purchases.
Wisconsin Man Accused Of Embezzling $117K; Uses Money To Start Escort Business
From Fox 11 News on 6/6/13:
A Sheboygan man is being accused of stealing money from a business, to among other things, start up an escort service.
Kirk Riddle, 46, has been charged with embezzling $117,000 from Kohler Company.
...
A Sheboygan man is being accused of stealing money from a business, to among other things, start up an escort service.
Kirk Riddle, 46, has been charged with embezzling $117,000 from Kohler Company.
...
Michigan Woman Accused Of Embezzling As Much As $100K From Nursing Home
From The Daily Press on 6/6/13:
MANISTIQUE - A former nursing home director, accused of embezzling funds from an assisted living facility in Manistique, was bound over from Schoolcraft County District Court to circuit court on Wednesday.
Jana Marie Chaperon, 39, of Rapid River, allegedly converted funds for her own use while director at the Woodland Meadows Assisted Living Facility.
She was arrested last month and charged with one count of embezzlement $50,000 to $100,000, a 15-year felony, and one count of using a computer to commit a crime, a 10-year felony.
...
According to an investigation by the Michigan State Police Detachment in Manistique, Chaperon allegedly embezzled monies from the nursing home for a long period of time until she resigned in the summer of 2012.
...
MANISTIQUE - A former nursing home director, accused of embezzling funds from an assisted living facility in Manistique, was bound over from Schoolcraft County District Court to circuit court on Wednesday.
Jana Marie Chaperon, 39, of Rapid River, allegedly converted funds for her own use while director at the Woodland Meadows Assisted Living Facility.
She was arrested last month and charged with one count of embezzlement $50,000 to $100,000, a 15-year felony, and one count of using a computer to commit a crime, a 10-year felony.
...
According to an investigation by the Michigan State Police Detachment in Manistique, Chaperon allegedly embezzled monies from the nursing home for a long period of time until she resigned in the summer of 2012.
...
Former Bookkeeper At Upstate New York Charter School Sentenced For Embezzling More Than $200K
From the Troy Record on 6/5/13:
A bookkeeper at an Albany charter school will spend at least five years behind bars for embezzlement after his sentencing Tuesday.
Ronald Racela, 49, received a sentence of 5 to 10 years behind bars for stealing more than $200,000 from the Brighter Choice Charter School where he worked as chief financial officer.
Racela’s sentencing Tuesday came after he pleaded guilty in March to one count of grand larceny.
...
Between September 2011 and December 2012, Wise’s investigation revealed that Racela made a series of improper payroll entries to himself for a total of $208,837.45.
The inquiry also revealed that Racela had been on felony probation for a separate financial crime at the time he committed the fraud. Officials at Brighter Choice were unaware of his criminal background when he was hired as CFO.
Racela must also pay $174,400.08 in restitution.
...
A bookkeeper at an Albany charter school will spend at least five years behind bars for embezzlement after his sentencing Tuesday.
Ronald Racela, 49, received a sentence of 5 to 10 years behind bars for stealing more than $200,000 from the Brighter Choice Charter School where he worked as chief financial officer.
Racela’s sentencing Tuesday came after he pleaded guilty in March to one count of grand larceny.
...
Between September 2011 and December 2012, Wise’s investigation revealed that Racela made a series of improper payroll entries to himself for a total of $208,837.45.
The inquiry also revealed that Racela had been on felony probation for a separate financial crime at the time he committed the fraud. Officials at Brighter Choice were unaware of his criminal background when he was hired as CFO.
Racela must also pay $174,400.08 in restitution.
...
Wednesday, June 5, 2013
Former CFO Of New York Non-Profit Pleads Guilty In $161K Embezzlement; Has A Criminal History
From The Record on 6/5/13:
...
Dennis Bassat, the former chief financial officer of 820 River St. Inc., stood in Rensselaer County Court beside his attorney and admitted to stealing $161, 384 from the non-profit over a five-year period beginning back in 2006.
As CFO, Bassat funneled money into a bank account in his name by cashing paychecks written to a fictitious employee, along with reimbursement checks for fraudulent expenses.
...
A one-time client of the agency with an extensive criminal history, Bassat remains free on bail until June 10, when he must surrender at the county jail.
...
...
Dennis Bassat, the former chief financial officer of 820 River St. Inc., stood in Rensselaer County Court beside his attorney and admitted to stealing $161, 384 from the non-profit over a five-year period beginning back in 2006.
As CFO, Bassat funneled money into a bank account in his name by cashing paychecks written to a fictitious employee, along with reimbursement checks for fraudulent expenses.
...
A one-time client of the agency with an extensive criminal history, Bassat remains free on bail until June 10, when he must surrender at the county jail.
...
The Madoff Of Munis - Forbes
From Forbes on 6/5/13:
By Francine McKenna, Forbes contributor
As her renown in the elite world of quarter horse breeding grew, Rita Crundwell kept her unglamorous day job as the $80,000-a-year comptroller of Dixon, Ill., a working-class city of nearly 16,000, most famous as the boyhood home of Ronald Reagan. Year after year, she delivered the bad budget numbers to councilmen and department heads–numbers that meant streets couldn’t be repaved, ambulance equipment couldn’t be purchased, and replacement radios for cops and firefighters would have to wait. Eventually the city workforce was cut.
...
Read the whole article here.
By Francine McKenna, Forbes contributor
As her renown in the elite world of quarter horse breeding grew, Rita Crundwell kept her unglamorous day job as the $80,000-a-year comptroller of Dixon, Ill., a working-class city of nearly 16,000, most famous as the boyhood home of Ronald Reagan. Year after year, she delivered the bad budget numbers to councilmen and department heads–numbers that meant streets couldn’t be repaved, ambulance equipment couldn’t be purchased, and replacement radios for cops and firefighters would have to wait. Eventually the city workforce was cut.
...
Read the whole article here.
Tuesday, June 4, 2013
California Couple In Court On Allegations They Embezzled $1.5 Million In Public Funds From Welfare Agency
From Sierra Wave Media on 6/3/13:
Dawndee and Kenneth Rossy of Bishop still face 44 felonies including embezzlement of $1.5 million in public funds from the Inyo Welfare Department.....
... Officers arrested the Rossys in April. County officials said Dawndee Rossy was terminated in February from her job as a supervisor in the Health and Human Services Department after reports were made to law enforcement that she was suspected of embezzling public funds.
The DA filed charges that include embezzlement of public funds, conspiracy to commit grand theft, conspiracy to commit identity theft and possession of methamphetamine. The criminal complaint filed against the Rossys reveals an alleged scheme to get welfare benefits in the form of cash through use of Electronic Benefit Transfer or EBT cards.
The complaint also reveals the allegation that the couple used the identities of 35 individuals to obtain the welfare benefits for themselves. Although County officials have said safeguards were in place to avoid embezzlement, clearly they did not protect the welfare funds. Officials said they were making changes to improve safeguards.
Dawndee and Kenneth Rossy of Bishop still face 44 felonies including embezzlement of $1.5 million in public funds from the Inyo Welfare Department.....
... Officers arrested the Rossys in April. County officials said Dawndee Rossy was terminated in February from her job as a supervisor in the Health and Human Services Department after reports were made to law enforcement that she was suspected of embezzling public funds.
The DA filed charges that include embezzlement of public funds, conspiracy to commit grand theft, conspiracy to commit identity theft and possession of methamphetamine. The criminal complaint filed against the Rossys reveals an alleged scheme to get welfare benefits in the form of cash through use of Electronic Benefit Transfer or EBT cards.
The complaint also reveals the allegation that the couple used the identities of 35 individuals to obtain the welfare benefits for themselves. Although County officials have said safeguards were in place to avoid embezzlement, clearly they did not protect the welfare funds. Officials said they were making changes to improve safeguards.
Wisconsin Man Suspected In $120K Embezzlement Scheme: Has Prior Criminal Arrest History
From the Menomonee Falls Patch on 6/3/13:
...
Menomonee Falls police are investigating an extensive embezzlement case involving a former employee of Novum Structures LLC in Falls.
Police obtained a search warrant to obtain copies of information and activity from a bank account held by Gerard Del Giudice. Del Giudice is suspected of embezzling at least $120,615 from Novum Structures, which is an architectural and construction company...
According to an affidavit filed with the Waukesha County Circuit Court:
Del Giudice allegedly set up shell companies while employed at Novum, and was charging Novum subcontractors for insurance and consultant fees. Between January 2012 and March 2013, Del Giudice bilked over $120,000 from the company through several transactions with through false companies.
This isn't the first tango for Del Giudice. He has also been arrested in Florida, Illinois, and Michigan for fraud, theft by deception, and embezzlement.
Del Giudice, who created a false identity by the name Jerry Guidice, fabricated the companies USA Assurety Corporation and Subsure Construction Services. He then billed Novum for services that were never provided. A Novum employee provided police a checking statement from Giudice's office, which shows the address of the US Assurety Corporation account matching Giudice's home address.
Police believe Giudice has been transferring funds from his shell companies into his personal account, and filed for a warrant to obtain proof of that. Former charges have not been filed at this point.
Update (1/6/2015) from WTAQ:
A former business executive in suburban Milwaukee is due in court next Monday, for allegedly stealing over $168,000 from his employer.
55-year-old Jerry Guidice, who now lives in Windermere Florida, is charged with six felony counts in Waukesha County -- 3 charges of embezzlement, 2 counts of false writings, and one charge of identity theft.
According to prosecutors, Guidice was hired at the start of 2012 to administer contracts for Novum Structures of Menomonee Falls. Investigators said he later created a fake construction company to which he made numerous payments from Novum Structures -- and later put the money in his own accounts.
Authorities said Guidice used the money to buy an airplane and a horse, among other things.
Officials said he was fired about 15 months after he was hired, and the firm then notified Menomonee Falls Police. Charges were not filed until Monday.
...
Menomonee Falls police are investigating an extensive embezzlement case involving a former employee of Novum Structures LLC in Falls.
Police obtained a search warrant to obtain copies of information and activity from a bank account held by Gerard Del Giudice. Del Giudice is suspected of embezzling at least $120,615 from Novum Structures, which is an architectural and construction company...
According to an affidavit filed with the Waukesha County Circuit Court:
Del Giudice allegedly set up shell companies while employed at Novum, and was charging Novum subcontractors for insurance and consultant fees. Between January 2012 and March 2013, Del Giudice bilked over $120,000 from the company through several transactions with through false companies.
This isn't the first tango for Del Giudice. He has also been arrested in Florida, Illinois, and Michigan for fraud, theft by deception, and embezzlement.
Del Giudice, who created a false identity by the name Jerry Guidice, fabricated the companies USA Assurety Corporation and Subsure Construction Services. He then billed Novum for services that were never provided. A Novum employee provided police a checking statement from Giudice's office, which shows the address of the US Assurety Corporation account matching Giudice's home address.
Police believe Giudice has been transferring funds from his shell companies into his personal account, and filed for a warrant to obtain proof of that. Former charges have not been filed at this point.
Update (1/6/2015) from WTAQ:
A former business executive in suburban Milwaukee is due in court next Monday, for allegedly stealing over $168,000 from his employer.
55-year-old Jerry Guidice, who now lives in Windermere Florida, is charged with six felony counts in Waukesha County -- 3 charges of embezzlement, 2 counts of false writings, and one charge of identity theft.
According to prosecutors, Guidice was hired at the start of 2012 to administer contracts for Novum Structures of Menomonee Falls. Investigators said he later created a fake construction company to which he made numerous payments from Novum Structures -- and later put the money in his own accounts.
Authorities said Guidice used the money to buy an airplane and a horse, among other things.
Officials said he was fired about 15 months after he was hired, and the firm then notified Menomonee Falls Police. Charges were not filed until Monday.
Former Head Of Non-Profit In Michigan Along With Bookkeeper Plead Guilty To Conspiring To Embezzle More Than $2.6 Million
From Crains Detroit Business on 6/3/13:
The former CEO and bookkeeper of Compensation Advisory Organization of Michigan in Livonia have pled guilty to embezzling over $2.6 million from the nonprofit.
Former CEO Jerry Stage, 67, pled guilty in Wayne County Circuit Court to one count each of embezzlement over $100,000 and conspiracy to embezzle over $100,000, both felonies punishable by up to 20 years in prison.
Stage pled guilty to embezzling approximately $2.6 million from the company during an 11-year period, conspiring with George Bauer, a former bookkeeper for the organization, to cover up his tracks, Michigan Attorney General Bill Schuette said in a news release.
Bauer, 55, pled guilty to one count of conspiracy to embezzle $50,000 to $100,000, a 15-year felony.
Both defendants together must repay $2.6 million per a joint restitution order.
...Stage wrote numerous checks to himself for $995 over a 14-year period, totaling approximately $1 million, and paid Bauer to keep it quiet, according to the case.
He also inflated his own pay raises and bonuses, bringing himself an additional $200,000, used a company credit card to pay for personal expenses and submitted false or inflated expense reports for events, including: week-long family vacations at Walt Disney World, tuition, wedding expenses, pet care and family dinners, the attorney general said.
...
The former CEO and bookkeeper of Compensation Advisory Organization of Michigan in Livonia have pled guilty to embezzling over $2.6 million from the nonprofit.
Former CEO Jerry Stage, 67, pled guilty in Wayne County Circuit Court to one count each of embezzlement over $100,000 and conspiracy to embezzle over $100,000, both felonies punishable by up to 20 years in prison.
Stage pled guilty to embezzling approximately $2.6 million from the company during an 11-year period, conspiring with George Bauer, a former bookkeeper for the organization, to cover up his tracks, Michigan Attorney General Bill Schuette said in a news release.
Bauer, 55, pled guilty to one count of conspiracy to embezzle $50,000 to $100,000, a 15-year felony.
Both defendants together must repay $2.6 million per a joint restitution order.
...Stage wrote numerous checks to himself for $995 over a 14-year period, totaling approximately $1 million, and paid Bauer to keep it quiet, according to the case.
He also inflated his own pay raises and bonuses, bringing himself an additional $200,000, used a company credit card to pay for personal expenses and submitted false or inflated expense reports for events, including: week-long family vacations at Walt Disney World, tuition, wedding expenses, pet care and family dinners, the attorney general said.
...
Massachusetts Woman Accused Of Embezzling $300K From Local Newspaper Company
From 95.9 WATD on 6/2/13:
A former Patriot Ledger worker has pleaded not guilty to bilking close to $300,000 from her employer.
Karen Sullivan of Braintree was fired from her job as office manager at the Quincy-based newspaper in March amid allegations she stole cash and checks from its parent company, Gatehouse Media.
Authorities say Sullivan’s scheme began when she was hired in 2006.
...
A former Patriot Ledger worker has pleaded not guilty to bilking close to $300,000 from her employer.
Karen Sullivan of Braintree was fired from her job as office manager at the Quincy-based newspaper in March amid allegations she stole cash and checks from its parent company, Gatehouse Media.
Authorities say Sullivan’s scheme began when she was hired in 2006.
...
California Woman Indicted On Charges She Allegedly Embezzled $800K From Monterey Aquarium
From NBC Bay Area on 6/2/13:
...
The indictment alleged that McMahon defrauded the institute of the $800,000 over seven years by altering payroll and 401(k) investment records to conceal the transfer of funds to her personal accounts, federal officials said.
McMahon had been working for the institute as a payroll specialist responsible for the payroll, 401(k) distributions and loans for institute employees.
...
A federal grand jury in San Jose has indicted a former payroll employee of an aquatics research facility at Moss Landing, Calif. in the embezzlement of about $800,000 from 2005 to 2012, according to the U.S. Attorney's office.
Lisa McMahon, of Mountain View, is set to appear in federal court in San Jose on Thursday to face charges of wire fraud and theft from the Monterey Bay Aquarium Research Institute following her indictment Wednesday, the office reported.
...
The indictment alleged that McMahon defrauded the institute of the $800,000 over seven years by altering payroll and 401(k) investment records to conceal the transfer of funds to her personal accounts, federal officials said.
McMahon had been working for the institute as a payroll specialist responsible for the payroll, 401(k) distributions and loans for institute employees.
...
Former Alabama Narcotics Chief Charged With Embezzling $125K
From the Times Daily on 5/31/13:
The former commander of the West Alabama Narcotics Task Force has been charged with stealing about $125,000 in drug proceeds that were seized by the agency.
U.S. Attorney's officials say 55-year-old Jeffrey Lynn Snyder, of Carrollton, has agreed to plead guilty to stealing from the task force between June 2010 and June 2012, when he left the organization.
...
The former commander of the West Alabama Narcotics Task Force has been charged with stealing about $125,000 in drug proceeds that were seized by the agency.
U.S. Attorney's officials say 55-year-old Jeffrey Lynn Snyder, of Carrollton, has agreed to plead guilty to stealing from the task force between June 2010 and June 2012, when he left the organization.
...
Montana Woman Charged With Embezzling $120K
From the Billings Gazette on 5/31/13:
A Fort Benton woman was charged with 16 felony counts of theft, common scheme, for allegedly embezzling nearly $120,000 from her employer, Northwest Physician Billing, from October 2011 to April 2013.
If convicted, Rachel Joyce Taylor faces 160 years in prison. The charges were filed in Chouteau County District Court on Thursday.
The investigation began May 1, when Fort Benton Police Chief John Turner met Jody Roth of Northwest Physicians Billing to discuss a possible embezzlement by an employee. Roth presented Turner with records showing multiple transactions where funds were electronically transferred from accounts into a bank account known to be Taylor’s, court documents said.
...
In an interview with Turner on May 2, Taylor described how she would sign into the bank account using Roth’s user ID and password. She said she would give herself money, money she needed to pay bills, documents said.
An investigative subpoena was obtained by Turner for bank accounts, and information showed unauthorized illegal transactions, documents said.
...
A Fort Benton woman was charged with 16 felony counts of theft, common scheme, for allegedly embezzling nearly $120,000 from her employer, Northwest Physician Billing, from October 2011 to April 2013.
If convicted, Rachel Joyce Taylor faces 160 years in prison. The charges were filed in Chouteau County District Court on Thursday.
The investigation began May 1, when Fort Benton Police Chief John Turner met Jody Roth of Northwest Physicians Billing to discuss a possible embezzlement by an employee. Roth presented Turner with records showing multiple transactions where funds were electronically transferred from accounts into a bank account known to be Taylor’s, court documents said.
...
In an interview with Turner on May 2, Taylor described how she would sign into the bank account using Roth’s user ID and password. She said she would give herself money, money she needed to pay bills, documents said.
An investigative subpoena was obtained by Turner for bank accounts, and information showed unauthorized illegal transactions, documents said.
...
Monday, June 3, 2013
California Man Pleads Guilty To Embezzling $950K From Community Association Management Firm
From The Modesto Bee on 5/30/13:
As part of his plea agreement, Chris Barna, 35, agreed to pay full restitution to M&C Association Management Services Inc. and to forfeit his house.
Federal prosecutors said Barna used some of the fraud profits to pay down his home's mortgage. Barna worked as the controller for M&C, a company that provides management and developer services to numerous community associations in Northern California. The fraud occurred from April 2007 through May 2011. Prosecutors said Barna misappropriated about 300 checks payable to the company from third parties, 40 checks payable to third parties from the company and two checks payable to a company of M&C's parent firm. Barna forged the endorsements on the checks or wrote "deposit only," prosecutors said, and he deposited the checks into accounts at Wells Fargo Bank. Barna then manipulated M&C financial records to conceal the fraud. He is scheduled to be sentenced Aug. 22 and faces a maximum sentence of 30 years in federal prison and a $2 million fine.
Manteca man pleads guilty in bank fraud case
A Manteca man Thursday pleaded guilty to bank fraud for his role in embezzling more than $950,000 from a Stockton company where he worked, according to the U.S. attorney's office in Sacramento.
As part of his plea agreement, Chris Barna, 35, agreed to pay full restitution to M&C Association Management Services Inc. and to forfeit his house.
Federal prosecutors said Barna used some of the fraud profits to pay down his home's mortgage. Barna worked as the controller for M&C, a company that provides management and developer services to numerous community associations in Northern California. The fraud occurred from April 2007 through May 2011. Prosecutors said Barna misappropriated about 300 checks payable to the company from third parties, 40 checks payable to third parties from the company and two checks payable to a company of M&C's parent firm. Barna forged the endorsements on the checks or wrote "deposit only," prosecutors said, and he deposited the checks into accounts at Wells Fargo Bank. Barna then manipulated M&C financial records to conceal the fraud. He is scheduled to be sentenced Aug. 22 and faces a maximum sentence of 30 years in federal prison and a $2 million fine.
California Woman Accused Of Embezzling Nearly $1.4 Million From Elderly Bank Customer Accounts
From ABC News on 5/31/13:
...authorities alleged that Linda Sue Foss bilked at least seven mostly elderly clients out of nearly $1.4 million.
According to an affidavit filed May 13 in Alameda County Superior Court, Foss, 62, of Dublin, Calif., stole from customers while she was working as a branch manager at a U.S. Bank on Mountain Boulevard, in Oakland, and then later during her tenure as manager of a nearby First Republic Bank branch. Foss had been an employee of California National Bank since 1983, which U.S. Bank acquired in 2009. She was let go from U.S. Bank in March of this year and began working at the First Republic Bank.
...
According to the complaint, written by Ron Miller, of the Alameda County DA Inspector's Unit, the thefts began in May, 2010 but were discovered earlier this year after a wealth manager noticed that that his client's bank statements had been altered. The wealth manager notified U.S. Bank about his suspicions, but Foss denied giving the manager the altered documents. According to records, on Feb. 22, 2013, $225,229.15 had been deposited into a CD account in the name of an elderly woman. This money was later removed from her account "in an apparent attempt to restore the missing funds the first elder's account," the complaint states.
When asked about the transfer of funds, Foss allegedly replied that one of the clients was repaying the other for money borrowed during "the Oakland Hills fire" in 1991. But the client said she had not borrowed any money; nor had she withdrawn any money from her CD. Bank records show that on February 8, 2010, there was $972,205.22 in her CD. On February 22, 2013, there was just $353,134.23.
...
Foss, who was being held on $1.6 million bail at the Santa Rita Jail in Dublin, has pleaded not guilty.
...
...authorities alleged that Linda Sue Foss bilked at least seven mostly elderly clients out of nearly $1.4 million.
According to an affidavit filed May 13 in Alameda County Superior Court, Foss, 62, of Dublin, Calif., stole from customers while she was working as a branch manager at a U.S. Bank on Mountain Boulevard, in Oakland, and then later during her tenure as manager of a nearby First Republic Bank branch. Foss had been an employee of California National Bank since 1983, which U.S. Bank acquired in 2009. She was let go from U.S. Bank in March of this year and began working at the First Republic Bank.
...
According to the complaint, written by Ron Miller, of the Alameda County DA Inspector's Unit, the thefts began in May, 2010 but were discovered earlier this year after a wealth manager noticed that that his client's bank statements had been altered. The wealth manager notified U.S. Bank about his suspicions, but Foss denied giving the manager the altered documents. According to records, on Feb. 22, 2013, $225,229.15 had been deposited into a CD account in the name of an elderly woman. This money was later removed from her account "in an apparent attempt to restore the missing funds the first elder's account," the complaint states.
When asked about the transfer of funds, Foss allegedly replied that one of the clients was repaying the other for money borrowed during "the Oakland Hills fire" in 1991. But the client said she had not borrowed any money; nor had she withdrawn any money from her CD. Bank records show that on February 8, 2010, there was $972,205.22 in her CD. On February 22, 2013, there was just $353,134.23.
...
Foss, who was being held on $1.6 million bail at the Santa Rita Jail in Dublin, has pleaded not guilty.
...
Former Insurance Claims Adjuster In Missouri Sentenced For Embezzling More Than $400K
From the St. Louis Post-Dispatch on 5/23/13:
A former claims adjuster for Allianz insurance company in O'Fallon was sentenced Thursday to 27 months in federal prison for defrauding the company of more than $400,000 that he diverted to himself.
Brian Behl pleaded guilty in February to mail fraud. After he serves his time, he will be under three years of supervised release.
Federal prosecutors said Behl worked for Allianz for about 10 years until Sept 2012, and the scheme occurred during the final 18 months.
...
Prosecutors said Behl set up a fictitious company called B&M Salvage Repair and registered a post office box in Illinois in its name, then sent more than $400,000 in supposed reimbursement checks to it, which he then used for personal items such as a car and a motorcycle.
A former claims adjuster for Allianz insurance company in O'Fallon was sentenced Thursday to 27 months in federal prison for defrauding the company of more than $400,000 that he diverted to himself.
Brian Behl pleaded guilty in February to mail fraud. After he serves his time, he will be under three years of supervised release.
Federal prosecutors said Behl worked for Allianz for about 10 years until Sept 2012, and the scheme occurred during the final 18 months.
...
Prosecutors said Behl set up a fictitious company called B&M Salvage Repair and registered a post office box in Illinois in its name, then sent more than $400,000 in supposed reimbursement checks to it, which he then used for personal items such as a car and a motorcycle.
Former Bank Manager In Tennessee Pleads Guilty To Loan Fraud Scheme
From The Chattanoogan on 5/23/13:
The head of BB&T's Chattanooga commercial banking operations has been charged by federal authorities with making fraudulent loans.
Tracy Brown is set to plead guilty to bank fraud on June 4.
Authorities said Brown "appropriated the identities of three customers and took out fraudulent loans in their names. In October 2012, a customer of BB&T, D.M., went to the Ooltewah branch of BB&T regarding a loan statement that he received in the mail. D.M. advised back in May 2012, he had been contacted by Brown in regard to a loan which Brown said had been opened for a different "D.M." but had his address in error.
...
The head of BB&T's Chattanooga commercial banking operations has been charged by federal authorities with making fraudulent loans.
Tracy Brown is set to plead guilty to bank fraud on June 4.
Authorities said Brown "appropriated the identities of three customers and took out fraudulent loans in their names. In October 2012, a customer of BB&T, D.M., went to the Ooltewah branch of BB&T regarding a loan statement that he received in the mail. D.M. advised back in May 2012, he had been contacted by Brown in regard to a loan which Brown said had been opened for a different "D.M." but had his address in error.
...
"Two loans were made by Brown in the name of R.M., one dated February 25, 2010, in the amount of $100,000 and one dated September 3, 2010, in the amount of $230,000. One loan was made by Brown in the name of S. L. dated December 14, 2011, in the amount of $50,000.
"Brown deposited some of the money from the fraudulent loans into a personal account belonging to him and his wife, and used the rest of the money to pay off some of the previous fraudulent loans he made in the customer's names."
Officials said the total exposure to BB&T was $475,000. BB&T prevented $124,000 from leaving the bank. BB&T was able to recover $30,638.90. BB&T incurred a loss of $320,361.10 as a result of the scheme charged, it was stated.
...
Former Bookkeeper In Louisiana Pleads Guilty To Embezzling $217K From Insurance Concern
From The Advocate on 5/23/13:
A former bookkeeper for a Baton Rouge firm was sentenced Wednesday to 30 months in federal prison after admitting she stole $217,347 from her employer and an insurance company.
Cynthia D. Windham, 49, pleaded guilty to one count of bank fraud after telling Chief U.S. District Judge Brian A. Jackson she altered 190 checks that belonged to Strategic Case Management LLC, her employer from December 2000 until August 2009. She then deposited those checks into her personal account.
...
Jackson ordered Windham to report to federal prison by 2 p.m. June 24. The judge also ordered Windham to pay restitution of $192,347 to Strategic Case Management and $25,000 to another firm, America First Insurance Co.
...
A former bookkeeper for a Baton Rouge firm was sentenced Wednesday to 30 months in federal prison after admitting she stole $217,347 from her employer and an insurance company.
Cynthia D. Windham, 49, pleaded guilty to one count of bank fraud after telling Chief U.S. District Judge Brian A. Jackson she altered 190 checks that belonged to Strategic Case Management LLC, her employer from December 2000 until August 2009. She then deposited those checks into her personal account.
...
Jackson ordered Windham to report to federal prison by 2 p.m. June 24. The judge also ordered Windham to pay restitution of $192,347 to Strategic Case Management and $25,000 to another firm, America First Insurance Co.
...
Former Utility Manager In Illinois Pleads Guilty To Embezzling $524K
From the Associated Press on 5/22/13:
BENTON, Illinois — The former manager of Marion's water department pleaded guilty to federal charges she stole more than $500,000 from the southern Illinois city.
U.S. Attorney Stephen R. Wigginton says Linda Heyde pleaded guilty Wednesday in U.S. District Court to three counts of theft and embezzlement of a local government that receives federal funds. She initially pleaded not guilty to the charges.
Heyde managed the water department from 1996 until last year, when she was fired after suspicious transactions were discovered in her department.
...
BENTON, Illinois — The former manager of Marion's water department pleaded guilty to federal charges she stole more than $500,000 from the southern Illinois city.
U.S. Attorney Stephen R. Wigginton says Linda Heyde pleaded guilty Wednesday in U.S. District Court to three counts of theft and embezzlement of a local government that receives federal funds. She initially pleaded not guilty to the charges.
Heyde managed the water department from 1996 until last year, when she was fired after suspicious transactions were discovered in her department.
...
Connecticut Woman Pleads Guilty To Embezzling More Than $500K From Synagogue
From NECN on 5/31/13:
HARTFORD, Conn. (AP) — Federal authorities say a Connecticut woman has pleaded guilty to a charge related to the embezzlement of more than $500,000 from a synagogue where she was the president.
The U.S. Attorney's office said Friday that 45-year-old Jodi Churchill of Orange pleaded guilty to mail fraud during an appearance in federal court in Hartford.
Authorities say Churchill embezzled the money from Beth El Synagogue in Southbury starting in 2010. Authorities say Churchill used embezzled funds to pay school-related expenses for her children, expenses for leasing a horse, vehicle expenses, airline tickets and hotels for personal travel. They say she also provided stolen money to a relative.
Churchill is scheduled to be sentenced Sept. 5 and faces up to 20 years in prison.
...
HARTFORD, Conn. (AP) — Federal authorities say a Connecticut woman has pleaded guilty to a charge related to the embezzlement of more than $500,000 from a synagogue where she was the president.
The U.S. Attorney's office said Friday that 45-year-old Jodi Churchill of Orange pleaded guilty to mail fraud during an appearance in federal court in Hartford.
Authorities say Churchill embezzled the money from Beth El Synagogue in Southbury starting in 2010. Authorities say Churchill used embezzled funds to pay school-related expenses for her children, expenses for leasing a horse, vehicle expenses, airline tickets and hotels for personal travel. They say she also provided stolen money to a relative.
Churchill is scheduled to be sentenced Sept. 5 and faces up to 20 years in prison.
...
Nevada Woman Pleads Guilty To Embezzling $3.3 Million In Payroll Scheme
From Fox5 Las Vegas on 5/30/13:
LAS VEGAS (FOX5) -
A Las Vegas woman entered guilty pleas Thursday in connection to a $3.3 million payroll embezzlement scheme that stretched over three years.
According to the Internal Revenue Service, Deborah DiFrancesco, 55, pleaded guilty to three counts of wire fraud and a count of tax evasion as part of a plea agreement.
The IRS said, in an indictment, DiFrancesco mislead clients through a payroll business telling them the appropriate funds and forms they forwarded to her were sent to tax authorities. In reality, the indictment said, DiFrancesco sent a different form representing a fund amount lower than what was due.
She kept the difference, which amounted to about $3.3 million between 2009 and 2011, according to the indictment. The IRS said she used those funds for gambling and personal expenses.
In addition, DiFrancesco pleaded guilty to preparing a personal income tax in 2009 that was, as the IRS said, substantially lower than what she earned that year. In forms, according to an indictment, she claimed her taxable income at $28,218.
The tax agency said DiFrancesco, under a plea agreement, will pay restitution of more than $3.8 million. She was also ordered to pay the IRS more than $1.1 million.
LAS VEGAS (FOX5) -
A Las Vegas woman entered guilty pleas Thursday in connection to a $3.3 million payroll embezzlement scheme that stretched over three years.
According to the Internal Revenue Service, Deborah DiFrancesco, 55, pleaded guilty to three counts of wire fraud and a count of tax evasion as part of a plea agreement.
The IRS said, in an indictment, DiFrancesco mislead clients through a payroll business telling them the appropriate funds and forms they forwarded to her were sent to tax authorities. In reality, the indictment said, DiFrancesco sent a different form representing a fund amount lower than what was due.
She kept the difference, which amounted to about $3.3 million between 2009 and 2011, according to the indictment. The IRS said she used those funds for gambling and personal expenses.
In addition, DiFrancesco pleaded guilty to preparing a personal income tax in 2009 that was, as the IRS said, substantially lower than what she earned that year. In forms, according to an indictment, she claimed her taxable income at $28,218.
The tax agency said DiFrancesco, under a plea agreement, will pay restitution of more than $3.8 million. She was also ordered to pay the IRS more than $1.1 million.
Montana Woman Pleads Guilty To Embezzling $318K From Employer
From the Associated Press on 5/30/13:
...
MISSOULA, Mont. (AP) — A 36-year-old Belgrade woman has pleaded guilty to embezzling $318,000 from her employer over a period of four years.
The U.S. Attorney's Office says Athaliah Venus Allison pleaded guilty Thursday to two counts of wire fraud and one count of aggravated identity in U.S. District Court in Missoula.
Prosecutors say Allison worked as a bookkeeper for Big Sky Asphalt in Bozeman from the summer of 2008 until September 2012, when she confessed to using the company credit card.
An audit found nearly $250,000 in unauthorized purchases. Prosecutors say she also forged unauthorized checks and overpaid herself for the hours she worked, for a total loss of at least another $68,000.
...
Indiana Man Pleads Guilty To Embezzling More Than $150K From Economic Development Agency
From the Courier Times on 5/28/13:
The Muncie man accused of stealing more than $150,000 from the former Eastern Indiana Development District has accepted a plea deal.
Troy Collier, 34, agreed to plead guilty to three counts of theft, class D felonies. In exchange, the state would dismiss one count of corrupt business influence, class C felony, one count of theft, class C felony, and two counts of theft, class D felonies.
...
Collier is accused of stealing about $150,000 from the EIDD and using it on personal expenses, including gas, groceries, Internet porn and electronics, according to a case report.
...
The Muncie man accused of stealing more than $150,000 from the former Eastern Indiana Development District has accepted a plea deal.
Troy Collier, 34, agreed to plead guilty to three counts of theft, class D felonies. In exchange, the state would dismiss one count of corrupt business influence, class C felony, one count of theft, class C felony, and two counts of theft, class D felonies.
...
Collier is accused of stealing about $150,000 from the EIDD and using it on personal expenses, including gas, groceries, Internet porn and electronics, according to a case report.
...
Georgia Woman & Family Charged With Embezzling More Than $2 Million From Dental Practice
From the Sandy Spring Patch on 5/30/13:
Rosemary D'souza, her husband Joseph, and daughter Karen, from Lawrenceville, GA were charged last week in what investigators discovered was an embezzlement of over $2 million dollars from Rosemary's employer, Dental TLC in Sandy Springs.
The investigation shows the thefts occurred between early 2009 and 2013 while Rosemary was an office manager for the dental practice. She reportedly paid herself over $800,000, her husband Joseph over $600,000, and daughter Karen, over $83,000 although her family had no connection to the practice.
According to the investigation, D'souza owned two homes in Florida. At some point, her employer learned this information and began to check the books which soon revealed evidence of the embezzlement.
Rosemary is charged with Theft by Taking, Felony Breach of the Fiduciary Obligation, and Financial Transaction Card Fraud. Both Joseph and Karen are charged with Theft by Taking.
...
Rosemary D'souza, her husband Joseph, and daughter Karen, from Lawrenceville, GA were charged last week in what investigators discovered was an embezzlement of over $2 million dollars from Rosemary's employer, Dental TLC in Sandy Springs.
The investigation shows the thefts occurred between early 2009 and 2013 while Rosemary was an office manager for the dental practice. She reportedly paid herself over $800,000, her husband Joseph over $600,000, and daughter Karen, over $83,000 although her family had no connection to the practice.
According to the investigation, D'souza owned two homes in Florida. At some point, her employer learned this information and began to check the books which soon revealed evidence of the embezzlement.
Rosemary is charged with Theft by Taking, Felony Breach of the Fiduciary Obligation, and Financial Transaction Card Fraud. Both Joseph and Karen are charged with Theft by Taking.
...
Indiana Woman Sentenced For Embezzling More Than $130K From Church
From the Star Press on 5/28/13:
INDIANAPOLIS — Angela Renee Linder on Tuesday recounted her long battle with bipolar disorder, and said she was a survivor of both sexual abuse as a child and domestic abuse as an adult.
But the 42-year-old rural Yorktown woman was unable to convince a U.S. District Court judge that she did not deserve to go to prison for embezzling more than $130,000 during the nine years she worked as an accounting administrator at Muncie’s Union Chapel United Methodist Church.
Judge Tanya Walton Pratt imposed a 17-month sentence and ordered Linder to pay $138,000 in restitution — $38,000 to the church and $100,000 to an insurance company that had compensated Union Chapel for that much of its loss.
...
[the judge] noted Linder’s earlier testimony that she had at times attempted suicide, most recently in 2010.
...
INDIANAPOLIS — Angela Renee Linder on Tuesday recounted her long battle with bipolar disorder, and said she was a survivor of both sexual abuse as a child and domestic abuse as an adult.
But the 42-year-old rural Yorktown woman was unable to convince a U.S. District Court judge that she did not deserve to go to prison for embezzling more than $130,000 during the nine years she worked as an accounting administrator at Muncie’s Union Chapel United Methodist Church.
Judge Tanya Walton Pratt imposed a 17-month sentence and ordered Linder to pay $138,000 in restitution — $38,000 to the church and $100,000 to an insurance company that had compensated Union Chapel for that much of its loss.
...
[the judge] noted Linder’s earlier testimony that she had at times attempted suicide, most recently in 2010.
...
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