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
Friday, June 21, 2013
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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[the judge] noted Linder’s earlier testimony that she had at times attempted suicide, most recently in 2010.
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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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Wisconsin Woman Sentenced For Embezzling Nearly $222K
From HaywardWI.com on 5/29/13:
At a May 29 hearing in Sawyer County Court, Town of Lenroot resident Charlene Murdock, 66, was sentenced to eight years of probation including six months in jail and was ordered to pay $221,951 restitution after being convicted of embezzlement from her former employer.
Earlier this year, Murdock pleaded no contest and was found guilty of five felony counts of theft of more than $10,000 in a business setting from her former employer, Bender Machine Works, and five felony counts of falsifying corporate records with intent to defraud as a corporate officer in 2006 and 2008.
Under the plea agreement between the district attorney’s office and defense, 10 other counts of felony theft over $10,000 in a business setting and 10 counts of fraudulent writings as a corporate officer from 2008-2011 were dismissed and read in for sentencing purposes.
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Murdock had worked as a bookkeeper for Bender Machine Works for more than 40 years until she was terminated in September 2011. The town of Hayward company manufactures equipment for the dairy farm industry.
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North Carolina Attorney Accused Of Embezzling More Than $100K From Trust Accounts
From BlueRidgeNow on 5.23.13:
Hendersonville attorney Alexander Veazey III appeared in Henderson County District Court Thursday afternoon under fire after investigators say he embezzled more than $100,000 from a trust in his care.
Hendersonville attorney Alexander Veazey III appeared in Henderson County District Court Thursday afternoon under fire after investigators say he embezzled more than $100,000 from a trust in his care.
Veazey, 60, waived his right to appointed counsel and hired attorney Chris Stepp to represent his defense. District Judge Athena Brooks set Veazey's next court date for June 14.
A preliminary investigation by the State Bar found that Veazey mishandled client funds that were deposited into his trust account, according to a consent order of preliminary injunction filed in Wake County on Jan. 31.
The investigation led to a warrant being issued for his arrest Wednesday. The warrant says Veazey embezzled, misapplied and converted to his own use “over $100,000” belonging to the trust account of "Lex H. Veazey" Attorney at Law between Jan. 1, 2011 and Jan. 31, 2013.
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According to the consent order, Veazey is not allowed to accept funds from clients or third parties, or withdraw funds or write any checks against any account in which client or fiduciary funds have been deposited.
Veazey is also not allowed to serve as an attorney-in-fact, trustee, escrow agent, executor or personal representative.
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Mother & 2 Daughters In North Carolina Indicted For Allegedly Embezzling More Than $100K From Healthcare Concern
From the New Bern Sun Journal on 5.23.13:
A mother and her two daughters have been indicted for embezzlement from a medical practice in New Bern.
Lisa Moore Norton, 53, and her two daughters, Katherine Norton Cannon, 21, and Courtney Norton, 19, all of New Bern face charges of systematic theft of more than $100,000 from Carolina Craniospinal Neurosurgery PLLC, a practice on Neuse Boulevard.
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Lisa Norton was office manager at Craniospinal Neurosurgery for several years.
Thomas said Lisa Norton was in charge of handling the income and expense payments for the physicians employed there. Katherine Cannon and Courtney Norton were occasional employees of the practice in the past, but had not been employed for many months when the theft was discovered.
Warrants state the alleged offense occurred between July 10, 2009, and Jan. 4 of this year.
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A mother and her two daughters have been indicted for embezzlement from a medical practice in New Bern.
Lisa Moore Norton, 53, and her two daughters, Katherine Norton Cannon, 21, and Courtney Norton, 19, all of New Bern face charges of systematic theft of more than $100,000 from Carolina Craniospinal Neurosurgery PLLC, a practice on Neuse Boulevard.
...
Lisa Norton was office manager at Craniospinal Neurosurgery for several years.
Thomas said Lisa Norton was in charge of handling the income and expense payments for the physicians employed there. Katherine Cannon and Courtney Norton were occasional employees of the practice in the past, but had not been employed for many months when the theft was discovered.
Warrants state the alleged offense occurred between July 10, 2009, and Jan. 4 of this year.
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Municipal Treasurer In Wyoming Sentenced To Prison For Embezzling $276K
From the AP on 5.22.13:
CHEYENNE, Wyo. (AP) — A federal judge on Wednesday sentenced a former Guernsey town treasurer to two years in prison for failing to pay taxes on money she has admitted to embezzling from the town.
U.S. District Judge Alan B. Johnson ordered U.S. Marshals to take Leslie Diane Zynda, 39, into custody immediately after the sentencing hearing in Cheyenne.
Johnson ordered Zynda to repay Guernsey more than $276,000. He also ordered her to pay the IRS more than $75,000 in unpaid taxes on the embezzled money.
Prosecutors said the embezzlement started in 2005 and stopped after current Guernsey Mayor Edward Delgado was elected in 2010 and started scrutinizing the books.
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Speaking after the hearing, Delgado said he started looking into the city deposits after he took office. He said it soon became apparent that Zynda, who served as both town treasurer and clerk, wasn't depositing all the money collected by the town's utility department. He said he alerted the town's attorney, Ed Buchanan.
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Zynda told Johnson that she was driven to take the money by personal circumstances including her husband becoming ill. "I was acting as the main person of the family, trying to hold everything together," she said.
Zynda said she used the money on personal expenses as well as to help other family members.
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Mississippi Woman Sentenced For $325K Bank Embezzlement
From the AP on 5.23.13:
OXFORD, Miss. (AP) — A Marshall County woman has been sentenced to 2 ½ years in prison for embezzling money from a Holly Springs bank.
The U.S. attorney's office says 53-year-old Deborah Shaw of Waterford was sentenced in U. S. District Court in Oxford on Tuesday.
Court records show Shaw pleaded guilty last year to one count of taking nearly $325,000 from the Merchants and Farmers Bank in Holly Springs.
U.S. District Judge Neal B. Biggers Jr. placed Shaw on five years' supervised release. She also was ordered to pay restitution in the amount of $327,842.
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