From the Associated Press on 2/28/14:
The former director of a federally funded aid program on the Blackfeet Indian Reservation has pleaded guilty to embezzling almost $300,000 from the program to support her gambling addiction.
Sandra Marie Sanderville of Browning pleaded guilty Thursday to embezzlement and fraud charges during a hearing before U.S. District Judge Keith Strong in Great Falls. A sentencing date has not been set, the U.S. Attorney's Office said.
Sanderville, 58, was director of the tribe's Temporary Assistance to Needy Families program from 2006 to 2010, during which the program received $12 million in federal funding.
Sanderville admitted she used various schemes to make overpayments to families, who then provided her with a cash kickback. Her scheme involved 16 to 20 program beneficiaries, including some who were ineligible for payments, court records said.
Prosecutors said Sanderville overpaid some recipients by adding children or grandchildren to the payment calculations, some real and others fabricated. She also failed to remove people from accounts when she knew they no longer lived in the household, court records said.
When the tribe began investigating the missing money, Sanderville tried to delete or destroy the files related to the fraudulent scheme. A backup computer file allowed investigators to re-create those transactions.
Sanderville told investigators she was gambling hundreds of dollars a week.
Friday, February 28, 2014
Virginia Market Closes Doors In Aftermath Of Alleged $280K Embezzlement By Store Manager Charged
From Inside NOVA on 2/27/14:
The Handy Dandy Market has been a Woodbridge landmark for more than six decades, but a recent case of suspected embezzlement almost caused the popular local convenience store to close its doors.
“It’s hard enough to make it these days as a small, independent business,” store owner Joe Roadcap said. “This about put us under, it really did.”
Police began investigating a case of possible embezzlement at the store at the corner of Occoquan and Horner roads in November, according to court documents.
An accountant for the store noticed “account discrepancies” of about $280,000 related to Virginia lottery ticket sales, police said in documents on file in Prince William Circuit Court.
A police investigation followed and store manager Nicole Tolf was charged with four counts of embezzlement and three counts of lottery ticket larceny.
According to court documents, Tolf is accused of stealing books of lottery tickets from the store. Police searched her house on Horner Road in November and seized money, lottery tickets, store receipts and a laptop, according to court records.
...
Read the whole story here.
The Handy Dandy Market has been a Woodbridge landmark for more than six decades, but a recent case of suspected embezzlement almost caused the popular local convenience store to close its doors.
“It’s hard enough to make it these days as a small, independent business,” store owner Joe Roadcap said. “This about put us under, it really did.”
Police began investigating a case of possible embezzlement at the store at the corner of Occoquan and Horner roads in November, according to court documents.
An accountant for the store noticed “account discrepancies” of about $280,000 related to Virginia lottery ticket sales, police said in documents on file in Prince William Circuit Court.
A police investigation followed and store manager Nicole Tolf was charged with four counts of embezzlement and three counts of lottery ticket larceny.
According to court documents, Tolf is accused of stealing books of lottery tickets from the store. Police searched her house on Horner Road in November and seized money, lottery tickets, store receipts and a laptop, according to court records.
...
Read the whole story here.
Virginia Man Charged With Embezzling More Than $100K From Trust Set Up To Help Child With Rare Blood Disease
From WTVR 6 on 2/27/14:
A trustee for a fund set up to cover the medical bills of a child with a rare blood disorder has been arrested on embezzlement charges.
Floyd W. Abernathy III, who is also known as Tray Abernathy, is accused of tapping into the Friends of Baylor fund.
Abernathy was arrested on Feb. 20 and charged with five counts of felony embezzlement, according to court documents. Each of the five embezzlement charges took place Jan. 1 between the years of 2008 and 2012, his online case file indicated.
Sources told CBS 6 News senior reporter Wayne Covil that more than $100,000 is missing from the fund, which was supposed to be used to pay ongoing medical expenses for a 10-year-old with a rare blood disorder that leads to bone marrow failure.
...
Read the story here.
A trustee for a fund set up to cover the medical bills of a child with a rare blood disorder has been arrested on embezzlement charges.
Floyd W. Abernathy III, who is also known as Tray Abernathy, is accused of tapping into the Friends of Baylor fund.
Abernathy was arrested on Feb. 20 and charged with five counts of felony embezzlement, according to court documents. Each of the five embezzlement charges took place Jan. 1 between the years of 2008 and 2012, his online case file indicated.
Sources told CBS 6 News senior reporter Wayne Covil that more than $100,000 is missing from the fund, which was supposed to be used to pay ongoing medical expenses for a 10-year-old with a rare blood disorder that leads to bone marrow failure.
...
Read the story here.
Massachusetts Man Indicted For Allegedly Embezzling $1 Million From Fire Extinguisher Company Where He Served As Bookkeeper
From the Springfield Republican on 2/27/14:
The former bookkeeper for a West Springfield business was indicted Thursday by a Hampden County grand jury in connection with the embezzlement of more than a $1 million over a three-year-period by manipulating the books, according to Massachusetts Attorney General’s Office.
The former bookkeeper for a West Springfield business was indicted Thursday by a Hampden County grand jury in connection with the embezzlement of more than a $1 million over a three-year-period by manipulating the books, according to Massachusetts Attorney General’s Office.
Jeffrey Cinelli, 50, of Montgomery, was indicted on five counts of larceny of more than $250, and four counts of making a false entry into corporate books. He is due to be arraigned on the charges in Hampden Superior Court on March 14.
Prosecutors charge that between January 2006 and May 2009, Cinelli, who at the time was the bookkeeper for Massachusetts Fire Technologies Inc., of West Springfield, funneled money from the company’s accounts to pay his own credit card debt, and then altered the books to conceal his actions.
...
Read the story here.
Prosecutors charge that between January 2006 and May 2009, Cinelli, who at the time was the bookkeeper for Massachusetts Fire Technologies Inc., of West Springfield, funneled money from the company’s accounts to pay his own credit card debt, and then altered the books to conceal his actions.
...
Read the story here.
Thursday, February 27, 2014
Illinois Man Indicted On Fraud Charges Alledging He Embezzled $500+K From Client Escrow Accounts; Another Employee Embezzles $400K
From the Chicago Tribune on 2/27/14:
The co-founder of a defunct Chicago escrow company was indicted on federal fraud charges on Wednesday for allegedly engaging in a Ponzi-like scheme and using more than $500,000 of customer funds for personal expenses and to operate other businesses.
Derek Lurie, was charged with five counts of mail fraud. Each count carries a maximum penalty of 20 years in prison and a $250,000 fine.
Lurie’s company, American Escrow, which had offices on West Randolph and North May streets, went out of business in 2009. The company didn’t issue refunds and left some of its customers with delinquent tax and insurance bills.
“This is a very stale investigation and a wrong-headed indictment. This is not a criminal case,” said Thomas Durkin, an attorney representing American Escrow.
The indictment alleges Lurie used some of the money it collected from customers to cover personal expenses, such as car payments and the costs of renovating a condominium in Miami.
American Escrow, which operated at a “significant deficit,” survived by juggling new escrow funds to pay off tax and insurance payments due at different times throughout the year, according to the indictment.
Lurie, 40, is due in court on March 11 for his arraignment.
Earlier this month, Jacqueline Cruz, a former American Escrow employee, was indicted for allegedly fraudulently obtaining more than $400,000 from the company.
Cruz, who oversaw the payment of customers’ property taxes and private mortgage insurance, wrote 122 company checks to herself between May 2005 and March 2009, according to her indictment.
Cruz, 38, is now living in Okinawa, Japan. She pleaded not guilty on Feb. 19 to three counts of mail fraud.
The co-founder of a defunct Chicago escrow company was indicted on federal fraud charges on Wednesday for allegedly engaging in a Ponzi-like scheme and using more than $500,000 of customer funds for personal expenses and to operate other businesses.
Derek Lurie, was charged with five counts of mail fraud. Each count carries a maximum penalty of 20 years in prison and a $250,000 fine.
Lurie’s company, American Escrow, which had offices on West Randolph and North May streets, went out of business in 2009. The company didn’t issue refunds and left some of its customers with delinquent tax and insurance bills.
The indictment alleges Lurie used some of the money it collected from customers to cover personal expenses, such as car payments and the costs of renovating a condominium in Miami.
American Escrow, which operated at a “significant deficit,” survived by juggling new escrow funds to pay off tax and insurance payments due at different times throughout the year, according to the indictment.
Lurie, 40, is due in court on March 11 for his arraignment.
Earlier this month, Jacqueline Cruz, a former American Escrow employee, was indicted for allegedly fraudulently obtaining more than $400,000 from the company.
Cruz, who oversaw the payment of customers’ property taxes and private mortgage insurance, wrote 122 company checks to herself between May 2005 and March 2009, according to her indictment.
Cruz, 38, is now living in Okinawa, Japan. She pleaded not guilty on Feb. 19 to three counts of mail fraud.
Former Bank Employee In Missouri Pleads Guilty To Charges She Embezzled $650K
From the Kansas City Business Journal on 2/27/14:
Lisa Taylor, a former UMB Bank employee who was recently charged with embezzling more than $650,000, pleaded guilty Thursday in federal court.
Taylor worked as a closing account specialist at UMB from May 2006 until October 2010. She was fired after a corporate fraud investigation determined that she had been using her position to generate fraudulent checks.
According to a release, Taylor requested 377 checks payable to her friends and family totaling $650,659. They would cash or deposit the checks in exchange for a portion of the money.
Eleven of those friends and family members also have pleaded guilty for their role in the scheme.
...
Read the story here.
Lisa Taylor, a former UMB Bank employee who was recently charged with embezzling more than $650,000, pleaded guilty Thursday in federal court.
Taylor worked as a closing account specialist at UMB from May 2006 until October 2010. She was fired after a corporate fraud investigation determined that she had been using her position to generate fraudulent checks.
According to a release, Taylor requested 377 checks payable to her friends and family totaling $650,659. They would cash or deposit the checks in exchange for a portion of the money.
Eleven of those friends and family members also have pleaded guilty for their role in the scheme.
...
Read the story here.
Former County Commissioner In Michigan Accused Of Embezzling $100+K From Trust For Elderly Man
From the Commercial Record on 2/27/14:
Former Allegan County Commissioner Terry Burns of Saugatuck, who last fall withdrew his candidacy for a state House seat, was arrested and arraigned Feb. 26 for allegedly embezzling money from a friend’s trust account.
Burns, also a former Saugatuck Township supervisor, was arrested by Michigan State Police and charged with one felony county of embezzlement in relation of trust with a vulnerable adult for more than $20,000.
He was arraigned in Allegan County District Court and released on a $5,000 personal recognizance bond. A preliminary hearing was set before District Judge Joseph Skocelas March 19 at 9 a.m.
Burns, 70, could not be reached for comment.
An Allegan County Probate judge removed him as conservator for the Joseph Migas estate Nov. 22, 2013, four days before Burns announced his withdrawal the 80th District state House race due to concerns of excessive spending and financial exploitation.
In three months Burns spent $80,000 of a $167,000 trust set up for Joseph Migas, 84, according to a Macatawa Bank investigation.
Burns, also a former Saugatuck Township supervisor, was arrested by Michigan State Police and charged with one felony county of embezzlement in relation of trust with a vulnerable adult for more than $20,000.
He was arraigned in Allegan County District Court and released on a $5,000 personal recognizance bond. A preliminary hearing was set before District Judge Joseph Skocelas March 19 at 9 a.m.
Burns, 70, could not be reached for comment.
An Allegan County Probate judge removed him as conservator for the Joseph Migas estate Nov. 22, 2013, four days before Burns announced his withdrawal the 80th District state House race due to concerns of excessive spending and financial exploitation.
In three months Burns spent $80,000 of a $167,000 trust set up for Joseph Migas, 84, according to a Macatawa Bank investigation.
“That sum’s overblown and I can account for it,” Burns told The Commercial Record. Most of what was spent went for Migas’ expenses, he continued, including repairs on a house in which Migas lived with his girlfriend.
Burns also loaned himself close to $27,000, much of which went to campaign consultant and friend Matt Muxlow.
Burns also loaned himself close to $27,000, much of which went to campaign consultant and friend Matt Muxlow.
...
Read the whole story here.
Virginia Woman Pleads Guilty To Charges She Embezzled $1 Million From Local Company
From the Fluvanna Review on 2/27/14:
A Fluvanna woman charged with embezzling more than $1 million from the Fork Union-based National Filter Service, pleaded guilty today (Feb. 27) in Fluvanna County Circuit Court to 20 felony counts, according to Fluvanna County Commonwealth’s Attorney Jeff Haislip.
Brenda van Emmenis, formerly Brenda Rigsby, pleaded guilty to 13 counts of embezzlement and seven counts of conducting unlawful money transactions, the statute that deals with money laundering.
She was remanded to jail to await sentencing.
A Fluvanna woman charged with embezzling more than $1 million from the Fork Union-based National Filter Service, pleaded guilty today (Feb. 27) in Fluvanna County Circuit Court to 20 felony counts, according to Fluvanna County Commonwealth’s Attorney Jeff Haislip.
Brenda van Emmenis, formerly Brenda Rigsby, pleaded guilty to 13 counts of embezzlement and seven counts of conducting unlawful money transactions, the statute that deals with money laundering.
She was remanded to jail to await sentencing.
Pennsylvania Man Arrested In $2.5 Bank Embezzlement Case - Also Faces Fraud Charges For Ripping Off eBay Customers
From the Pittsburgh Tribune-Review on 2/27/14:
A Downtown man facing prosecution on charges that include embezzling $2.5 million while he worked for the Bank of New York Mellon Corp. was arrested this week in Arizona on counterfeiting charges, federal prosecutors said.
Assistant U.S. Attorney Tonya Goodman on Wednesday asked U.S. District Judge Terrence McVerry to revoke the bail of Joseph Graziano, 28.
A grand jury indicted Graziano in September on 14 counts of bank fraud, mail fraud and embezzlement. The bank fraud counts accuse him of taking out loans and using expensive cars he no longer owned as collateral.
The mail fraud counts include his ripping off eBay customers by accepting thousands of dollars for electronics and sending buyers empty boxes.
...
Water Utility In Colorado Hikes Rates In Wake Of Alleged $500K Embezzlement
From KKTV 11 on 2/26/14:
Some local water customers are about to see a big jump in their monthly bills.
Homeowners in Cascade will now have to pay an extra $25 each month. This all stems from an alleged embezzlement case involving a former board member.
The board passed the increase unanimously, but before doing so, wanted to make it clear that they were only raising the rates until the debt of the alleged embezzlement was paid back.
In Tuesday’s standing room only meeting, Cascade homeowners questioned the board of commissioners and expressed a lot of concerns about the future of their water usage. Cascade Metro Service provides water to homeowners in the area.
A former board member is accused of embezzling close to $500,000 from a grant used to pay Colorado Springs Utilities. CSU provides water treatment for the town; Cascade is now in debt for that amount.
...
Read the whole story here.
Some local water customers are about to see a big jump in their monthly bills.
Homeowners in Cascade will now have to pay an extra $25 each month. This all stems from an alleged embezzlement case involving a former board member.
The board passed the increase unanimously, but before doing so, wanted to make it clear that they were only raising the rates until the debt of the alleged embezzlement was paid back.
In Tuesday’s standing room only meeting, Cascade homeowners questioned the board of commissioners and expressed a lot of concerns about the future of their water usage. Cascade Metro Service provides water to homeowners in the area.
A former board member is accused of embezzling close to $500,000 from a grant used to pay Colorado Springs Utilities. CSU provides water treatment for the town; Cascade is now in debt for that amount.
...
Read the whole story here.
Former Bookkeeper Charged With Embezzling $543K From Missouri Company
From the Kansas City Business Journal on 2/25/14:
Susan Elise Prophet, who was a bookkeeper for Dorfman Plumbing Supply Co., is accused of embezzling more than $543,000 between December 2012 and August 2013.
According to the indictment, Prophet wrote 105 unauthorized checks that she used to purchase vehicles, furniture, electronics and other items. She is charged with 16 counts, including wire fraud, bank fraud, money laundering and identity theft.
...
Read the whole story here.
Susan Elise Prophet, who was a bookkeeper for Dorfman Plumbing Supply Co., is accused of embezzling more than $543,000 between December 2012 and August 2013.
According to the indictment, Prophet wrote 105 unauthorized checks that she used to purchase vehicles, furniture, electronics and other items. She is charged with 16 counts, including wire fraud, bank fraud, money laundering and identity theft.
...
Read the whole story here.
Missouri DOC Union Exec Indicted On Charges He Allegedly Embezzled $185K
From KMBZ on 2/25/14:
The former president of a Jackson County Union has been indicted in federal court.
Twenty-nine counts were filed against Jesse Morgan, 38, claiming that he ran a wire fraud scheme and embezzled more than $185,000.
The Union he is accused of stealing from represents Jackson County Department of Corrections employees. The indictment claims Morgan wrote checks to himself, withdrew cash from ATMs, and used union funds to deposit money into online accounts.
The former president of a Jackson County Union has been indicted in federal court.
Twenty-nine counts were filed against Jesse Morgan, 38, claiming that he ran a wire fraud scheme and embezzled more than $185,000.
The Union he is accused of stealing from represents Jackson County Department of Corrections employees. The indictment claims Morgan wrote checks to himself, withdrew cash from ATMs, and used union funds to deposit money into online accounts.
Former Finance Exec For Southern New Hampshire University Sentenced For Embezzling $1.1 Million Over 14 Year Period
From the Boston Globe on 2/25/14:
The former budget director of Southern New Hampshire University was sentenced Tuesday to 7 ½ to 15 years in prison for stealing $1.1 million from the school over the course of 14 years.
The former budget director of Southern New Hampshire University was sentenced Tuesday to 7 ½ to 15 years in prison for stealing $1.1 million from the school over the course of 14 years.
Raymond Prouty, who had worked at the Manchester school for 34 years, pleaded guilty to two felony counts of theft by deception and theft by unauthorized taking. He did not comment at his sentencing hearing in Merrimack County Superior Court, but prosecutors said he gave no specific explanations for the thefts.
...
Read the story here.
Virginia Man Sentenced To 5 Years In $700K Non-Profit Embezzlement Case
From the Roanoke Times on 2/24/14:
The man who stole more than $700,000 from the nonprofit fundraising arm of the Virginia FFA Association was sentenced in Montgomery County Circuit Court on Monday to serve five years in prison.
Of the $716,000 Eugene Todd Mills is also expected to pay in restitution, only $60,000 was returned the day he was sentenced, according to courtroom testimony.
Where the rest of the money has gone, county Assistant Commonwealth’s Attorney Andrew Stephens said, is a question that will continue to hang over the courtroom. He called the case, which included nine counts of embezzlement, “stealing on an epic scale.”
Mills, who had served as the Virginia FFA Foundation treasurer at least since 2002, had deposited donations intended for the organization into a bank account, which he used to write himself about 162 checks since 2007, according to testimony.
Mills, 42, entered an Alford plea to the nine counts of embezzlement in September, which has the same effect as a guilty plea but allows him to maintain his innocence.
...
Read the whole story here.
The man who stole more than $700,000 from the nonprofit fundraising arm of the Virginia FFA Association was sentenced in Montgomery County Circuit Court on Monday to serve five years in prison.
Of the $716,000 Eugene Todd Mills is also expected to pay in restitution, only $60,000 was returned the day he was sentenced, according to courtroom testimony.
Where the rest of the money has gone, county Assistant Commonwealth’s Attorney Andrew Stephens said, is a question that will continue to hang over the courtroom. He called the case, which included nine counts of embezzlement, “stealing on an epic scale.”
Mills, who had served as the Virginia FFA Foundation treasurer at least since 2002, had deposited donations intended for the organization into a bank account, which he used to write himself about 162 checks since 2007, according to testimony.
Mills, 42, entered an Alford plea to the nine counts of embezzlement in September, which has the same effect as a guilty plea but allows him to maintain his innocence.
...
Read the whole story here.
Former Bank Exec In Florida Pleads Guilty To Embezzling $10 Million - Uses Money To Help Customers
From the Florida Times-Union on 2/25/14:
Federal authorities have charged a former Jacksonville bank vice president with embezzling $10.5 million for himself and customers, oddly using the money to help them with loans and other banking favors, court records show.
Christopher David Boston, 40, entered into a plea agreement with prosecutors last week in which he admitted to the thefts from Fifth Third Bank over a 3½-year period, records show. The thefts occurred while Boston was working as a vice president and a private banker at the bank’s Mandarin branch at 9716 San Jose Blvd. just south of Old St. Augustine Road. A private banker handles high dollar accounts, of which Boston had dozens.
...
Read the whole story here.
Federal authorities have charged a former Jacksonville bank vice president with embezzling $10.5 million for himself and customers, oddly using the money to help them with loans and other banking favors, court records show.
Christopher David Boston, 40, entered into a plea agreement with prosecutors last week in which he admitted to the thefts from Fifth Third Bank over a 3½-year period, records show. The thefts occurred while Boston was working as a vice president and a private banker at the bank’s Mandarin branch at 9716 San Jose Blvd. just south of Old St. Augustine Road. A private banker handles high dollar accounts, of which Boston had dozens.
...
Read the whole story here.
2 Longtime Employees Suspected In $400K Bank Embezzlement Case In Western Massachusetts
From the Berkshire Eagle on 2/25/14:
Three months after the discovery of up to $400,000 in reserve funds missing from the Lenox National Bank, bank officials are still in the dark on the progress of an extensive FBI investigation.
Two long-serving employees who were terminated last November remain potential suspects in the federal case of embezzlement and fraud, but have not yet been charged or arrested. The joint investigation is being handled by the FBI's Springfield office and Lenox Police. Police Chief Stephen O'Brien said on Monday that he has been in contact with the bureau, but the status of the case remains unchanged since November. "This is still a very active investigation," he stated. Bank President Paul Merlino, an executive at Lenox National since 1975, told The Eagle that, following what he has called "a shocking betrayal by two trusted employees," tighter internal security procedures have been deployed.
...
Read the story here.
Three months after the discovery of up to $400,000 in reserve funds missing from the Lenox National Bank, bank officials are still in the dark on the progress of an extensive FBI investigation.
Two long-serving employees who were terminated last November remain potential suspects in the federal case of embezzlement and fraud, but have not yet been charged or arrested. The joint investigation is being handled by the FBI's Springfield office and Lenox Police. Police Chief Stephen O'Brien said on Monday that he has been in contact with the bureau, but the status of the case remains unchanged since November. "This is still a very active investigation," he stated. Bank President Paul Merlino, an executive at Lenox National since 1975, told The Eagle that, following what he has called "a shocking betrayal by two trusted employees," tighter internal security procedures have been deployed.
...
Read the story here.
Connecticut Man Awaits Sentencing In $14 Million Embezzlement Case; Including $2.1 Million From Local Church
From the New Haven Register on 2/24/14:
Victims of Gregory P. Loles, the Easton man who pleaded guilty in July 2011 to embezzling more than $10 million, including $2.1 million from St. Barbara’s Greek Orthodox Church in Orange, will have to wait a few more days to see him sentenced.
The trade-off, however, is that Loles could receive the maximum 30-year penalty his charges carry.
The Rev. Peter Orfanakos, the pastor at St. Barbara’s, arrived at U.S. District court along with several of Loles’ other victims on Monday morning thinking the sentencing would finally occur later that day, this after Loles had seen his sentencing postponed five times.
But a day of brisk and at times intense cross-examination, where Loles was grilled about his role in a $14 million scheme in Greece in which he allegedly stole money from a prominent Greek family, means he won’t be sentenced until Wednesday.
...
Read the whole story here.
Victims of Gregory P. Loles, the Easton man who pleaded guilty in July 2011 to embezzling more than $10 million, including $2.1 million from St. Barbara’s Greek Orthodox Church in Orange, will have to wait a few more days to see him sentenced.
The trade-off, however, is that Loles could receive the maximum 30-year penalty his charges carry.
The Rev. Peter Orfanakos, the pastor at St. Barbara’s, arrived at U.S. District court along with several of Loles’ other victims on Monday morning thinking the sentencing would finally occur later that day, this after Loles had seen his sentencing postponed five times.
But a day of brisk and at times intense cross-examination, where Loles was grilled about his role in a $14 million scheme in Greece in which he allegedly stole money from a prominent Greek family, means he won’t be sentenced until Wednesday.
...
Read the whole story here.
2 Former Credit Union Employees In Illinois Plead Guilty To Embezzling $320K - Manager Used Money To Cover Theft From Municipality
From the FBI on 2/24/14:
Two former employees of Milledgeville Community Credit Union have pleaded guilty in separate federal cases to embezzling money from Milledgeville Community Credit Union in Milledgeville, Illinois. Kimberly Kent, 53, who was also a former treasurer of Wysox Township, pleaded guilty in federal court today, and Kelsey Selman, 37, pleaded guilty on January 28, 2014.
According to Kent’s written plea agreement, from October 2005 through February 2012, Kent embezzled approximately $219,600 from Milledgeville Community Credit Union, where she was the manager and responsible for supervising other employees. Kent was also responsible for her own cash drawer and for handling various transactions on accounts, including the deposit and withdrawal of funds to and from customers’ accounts. As stated in the plea agreement, to conceal her embezzlement, Kent created fictitious loans using the names of family members and fictitious certificates of deposit In 2009, Kent was elected treasurer of Wysox Township. Kent admitted that in August 2010, in her capacity as treasurer of Wysox Township, she used funds from Wysox Township’s account at Milledgeville Community Credit Union to cover her embezzlement. Kent used the money she embezzled for personal purposes. The deposits of the credit union were insured by the National Credit Union Administration Board.
In Selman’s written plea agreement, Selman admitted that from 2007 through February 2012, she embezzled approximately $100,975.74 from Milledgeville Community Credit Union. Selman worked as a teller for the credit union handling deposits and withdrawals on accounts, including her own credit union account. According to the plea agreement, Selman repeatedly took money over that period of time, using the credit union’s computer system to apply credits to her personal account that did not have a corresponding deposit. As a result, the credit union’s records falsely reflected that Selman’s cash drawer increased by an amount to offset the deposit into her account. After she credited the money into her account, Selman used the money she embezzled for personal purposes.
...
See the full FBI announcement here.
Two former employees of Milledgeville Community Credit Union have pleaded guilty in separate federal cases to embezzling money from Milledgeville Community Credit Union in Milledgeville, Illinois. Kimberly Kent, 53, who was also a former treasurer of Wysox Township, pleaded guilty in federal court today, and Kelsey Selman, 37, pleaded guilty on January 28, 2014.
According to Kent’s written plea agreement, from October 2005 through February 2012, Kent embezzled approximately $219,600 from Milledgeville Community Credit Union, where she was the manager and responsible for supervising other employees. Kent was also responsible for her own cash drawer and for handling various transactions on accounts, including the deposit and withdrawal of funds to and from customers’ accounts. As stated in the plea agreement, to conceal her embezzlement, Kent created fictitious loans using the names of family members and fictitious certificates of deposit In 2009, Kent was elected treasurer of Wysox Township. Kent admitted that in August 2010, in her capacity as treasurer of Wysox Township, she used funds from Wysox Township’s account at Milledgeville Community Credit Union to cover her embezzlement. Kent used the money she embezzled for personal purposes. The deposits of the credit union were insured by the National Credit Union Administration Board.
In Selman’s written plea agreement, Selman admitted that from 2007 through February 2012, she embezzled approximately $100,975.74 from Milledgeville Community Credit Union. Selman worked as a teller for the credit union handling deposits and withdrawals on accounts, including her own credit union account. According to the plea agreement, Selman repeatedly took money over that period of time, using the credit union’s computer system to apply credits to her personal account that did not have a corresponding deposit. As a result, the credit union’s records falsely reflected that Selman’s cash drawer increased by an amount to offset the deposit into her account. After she credited the money into her account, Selman used the money she embezzled for personal purposes.
...
See the full FBI announcement here.
Monday, February 24, 2014
Former Tribal Controller In New Mexico Pleads Guilty To Embezzling $200K
From the Albuquerque Journal on 2/24/14:
The former comptroller for the Jicarilla Apache Nation’s Utility Authority pleaded guilty this morning in federal court in Albuquerque of embezzling $214,594.13 from the authority. Robert G. Wells, 63, of Albuquerque, pleaded guilty to embezzlement and theft from an Indian tribal organization, said Acting U.S. Attorney Steven C. Yarbrough, Wells was arrested in November 2013, on a three-count indictment charging him with the embezzlement which occurred between July and October 2011, said a news release from the U.S. Attorney. Wells, a non-Indian, pleaded guilty to all three counts...
Read the story here (subscription required)
The former comptroller for the Jicarilla Apache Nation’s Utility Authority pleaded guilty this morning in federal court in Albuquerque of embezzling $214,594.13 from the authority. Robert G. Wells, 63, of Albuquerque, pleaded guilty to embezzlement and theft from an Indian tribal organization, said Acting U.S. Attorney Steven C. Yarbrough, Wells was arrested in November 2013, on a three-count indictment charging him with the embezzlement which occurred between July and October 2011, said a news release from the U.S. Attorney. Wells, a non-Indian, pleaded guilty to all three counts...
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Massachusetts Woman To Be Resentenced For Stealing $210K From Credit Union
From the News Telegram on 2/24/14:
A 62-year-old city woman is scheduled to be resentenced next month for her role in the theft of more than $200,000 from the Grafton Street credit union where she worked.
Susan Carcieri and her husband, George Labadie, were found guilty in 2010 of staging an Aug. 27, 2002, robbery at the Wyman-Gordon Federal Credit Union on Grafton Street, where Ms. Carcieri worked as an assistant manager, and stealing $210,000.
A Worcester Superior Court jury convicted both the husband and wife of embezzlement from a bank by a bank employee. Mr. Labadie was found guilty as a joint venturer.
He was also convicted of attempted counterfeiting and possession of counterfeiting tools based on items that were recovered by police during a search of the couple's home at 521 Grafton St. two days after the reported robbery.
The state Appeals Court reversed both bank embezzlement convictions in 2012, finding that state courts lacked jurisdiction over the crime of embezzlement from a credit union.
Mr. Labadie was sentenced in 2010 to 10 to 12 years in state prison on the bank embezzlement charge, and to a concurrent prison term of 9 to 10 years for possessing counterfeiting tools. He was placed on probation for 10 years, to begin upon his release, on the attempted counterfeiting charge.
Ms. Carcieri was sentenced to 4 to 7 years' imprisonment, but the sentence was later stayed by Judge Peter W. Agnes Jr., pending appeal. Judge Agnes has since been appointed to the Appeals Court.
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A 62-year-old city woman is scheduled to be resentenced next month for her role in the theft of more than $200,000 from the Grafton Street credit union where she worked.
Susan Carcieri and her husband, George Labadie, were found guilty in 2010 of staging an Aug. 27, 2002, robbery at the Wyman-Gordon Federal Credit Union on Grafton Street, where Ms. Carcieri worked as an assistant manager, and stealing $210,000.
A Worcester Superior Court jury convicted both the husband and wife of embezzlement from a bank by a bank employee. Mr. Labadie was found guilty as a joint venturer.
He was also convicted of attempted counterfeiting and possession of counterfeiting tools based on items that were recovered by police during a search of the couple's home at 521 Grafton St. two days after the reported robbery.
The state Appeals Court reversed both bank embezzlement convictions in 2012, finding that state courts lacked jurisdiction over the crime of embezzlement from a credit union.
Mr. Labadie was sentenced in 2010 to 10 to 12 years in state prison on the bank embezzlement charge, and to a concurrent prison term of 9 to 10 years for possessing counterfeiting tools. He was placed on probation for 10 years, to begin upon his release, on the attempted counterfeiting charge.
Ms. Carcieri was sentenced to 4 to 7 years' imprisonment, but the sentence was later stayed by Judge Peter W. Agnes Jr., pending appeal. Judge Agnes has since been appointed to the Appeals Court.
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Massachusetts Couple Suspected Of Embezzling $240K From Local Non-Profit Ambulance Service
From Fox 23 on 2/23/14:
A local couple is facing accusations that they stole from a Massachusetts ambulance service.
A local couple is facing accusations that they stole from a Massachusetts ambulance service.
Albert and Cara Miller are well known in Williamstown and are accused of embezzling hundreds of thousands of dollars or several years from the not-for-profit organization.
The 40 members of the Village Ambulance Service feel betrayed by their trusted and longtime co-workers.
The Berkshire County District Attorney’s Office announced last week that the couple is facing charges of larceny and embezzlement. They are accused of stealing $240,000 dollars while employed by the Village Ambulance Service in Williamstown.
Board President Dr. Winn Stuebner said the Millers were longtime employees who handled the books.
“They were very good at this. Even our year Y audits didn't find anything,” said Stuebner.
The discovery of missing money happened two years ago when co-workers noticed packages arriving from stores that had nothing to do with emergency medical care. A forensic accounting investigation found that the money had been stolen over a five year period beginning in 2006.
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American Legion Investigates Suspected $100+K Embezzlement At Post In Oklahoma; Former Head Ousted For Improprieties
From Tulsa World on 2/24/14:
The American Legion national headquarters is investigating its Oklahoma offices after the embezzlement of least $100,000, The Oklahoman has learned.
The investigation comes after the former Oklahoma American Legion adjutant was charged in January with selling ceremonial World War I and World War II rifles for personal profit.
The American Legion national headquarters is investigating its Oklahoma offices after the embezzlement of least $100,000, The Oklahoman has learned.
The investigation comes after the former Oklahoma American Legion adjutant was charged in January with selling ceremonial World War I and World War II rifles for personal profit.
The outcome of the investigation could be as drastic as the ouster of the state department's entire current leadership.
"We won't know more until after the visit and report is completed and adopted by our board of directors in May," said Joe March, media director for The American Legion national headquarters.
Former County Treasurer In Virginia Awaits Sentencing For Embezzling $124K
From the News & Advance on 2/24/14:
Amherst County is attempting to recoup financial losses accrued from the past embezzlement of county money from the treasurer’s office.
In August, Assistant County Administrator David Proffitt filed a claim to the Virginia Department of the Treasury’s Division of Risk Management for the amount of $124,151.73 to recover losses the county incurred during the tenure of former treasurer Evelyn Martin.
Martin awaits sentencing in April after pleading guilty in January to embezzlement and money laundering of more than $32,000. The conclusion of the court case will mark the point at which the county could receive reimbursement, if officials can prove the financial losses. An investigation concluded that Martin, who was elected to the treasurer’s post in 2009 after serving in the office as deputy treasurer, conducted more than $32,000 in transactions that were unaccounted for during two periods of time that ended in 2011. According to a 2012 turnover audit released after current treasurer Garry Friend assumed office, more than $60,000 in unreconciled, and at times, unidentified funds existed in the office as of Dec. 31, 2011.
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Amherst County is attempting to recoup financial losses accrued from the past embezzlement of county money from the treasurer’s office.
In August, Assistant County Administrator David Proffitt filed a claim to the Virginia Department of the Treasury’s Division of Risk Management for the amount of $124,151.73 to recover losses the county incurred during the tenure of former treasurer Evelyn Martin.
Martin awaits sentencing in April after pleading guilty in January to embezzlement and money laundering of more than $32,000. The conclusion of the court case will mark the point at which the county could receive reimbursement, if officials can prove the financial losses. An investigation concluded that Martin, who was elected to the treasurer’s post in 2009 after serving in the office as deputy treasurer, conducted more than $32,000 in transactions that were unaccounted for during two periods of time that ended in 2011. According to a 2012 turnover audit released after current treasurer Garry Friend assumed office, more than $60,000 in unreconciled, and at times, unidentified funds existed in the office as of Dec. 31, 2011.
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Connecticut Woman Awaits Sentencing For Embezzling From Local Public Access Television Station
From WTIC 1080 on 2/23/14:
A woman who faces 20 years in prison for stealing nearly $380,000 from a public access TV station in Bolton faces arrest after her second hospital stay delayed her sentencing.
Deborah Hilton, who pleaded guilty in December to larceny, was scheduled to be sentenced on Friday. It was continued from Feb. 14 after she checked into a hospital.
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Hat tip: FraudTalk reader Joe.
A woman who faces 20 years in prison for stealing nearly $380,000 from a public access TV station in Bolton faces arrest after her second hospital stay delayed her sentencing.
Deborah Hilton, who pleaded guilty in December to larceny, was scheduled to be sentenced on Friday. It was continued from Feb. 14 after she checked into a hospital.
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Hat tip: FraudTalk reader Joe.
Sunday, February 23, 2014
Ohio Union Official Pleads Guilty To Embezzling $152K
From the National Legal & Policy Center on 2/21/14:
On January 17, Kristie McClarren, former financial secretary of United Auto Workers Local 3061, pleaded guilty in U.S. District Court for the Northern District of Ohio to one count of embezzling funds in the sum of $152,639 from the Crestline (near Mansfield), Ohio-based union. She had been charged in December.
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On January 17, Kristie McClarren, former financial secretary of United Auto Workers Local 3061, pleaded guilty in U.S. District Court for the Northern District of Ohio to one count of embezzling funds in the sum of $152,639 from the Crestline (near Mansfield), Ohio-based union. She had been charged in December.
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Friday, February 21, 2014
California Man Pleads Guilty To Embezzling $1+ Million From Elderly Couple
From the Imperial Valley News on 2/20/14:
United States Attorney Laura E. Duffy announced that Brian Lee of San Diego County pleaded guilty today to participating in a scheme he created to obtain more than $1 million from accounts he had opened on behalf of any elderly couple. Lee entered his guilty plea to one count of wire fraud before Magistrate Judge Jan M. Adler and is scheduled to appear before U.S. District Court Judge Barry Ted Moskowitz on May 16, 2014, for sentencing.
In approximately June 2004, a San Diego couple hired Lee to create trusts and corporations on their behalf and to control bank accounts he opened in the name of the various entities. As Lee admitted in today’s hearing and in court documents, between 2004 and 2012, he made unauthorized transfers of the couple’s funds, through interstate transactions, into other bank accounts over which he had exclusive control. He systematically withdrew funds for his personal use from various accounts, including one opened as a trust for the couple’s grandchildren. In total, Lee siphoned more than $1 million from the couple.
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United States Attorney Laura E. Duffy announced that Brian Lee of San Diego County pleaded guilty today to participating in a scheme he created to obtain more than $1 million from accounts he had opened on behalf of any elderly couple. Lee entered his guilty plea to one count of wire fraud before Magistrate Judge Jan M. Adler and is scheduled to appear before U.S. District Court Judge Barry Ted Moskowitz on May 16, 2014, for sentencing.
In approximately June 2004, a San Diego couple hired Lee to create trusts and corporations on their behalf and to control bank accounts he opened in the name of the various entities. As Lee admitted in today’s hearing and in court documents, between 2004 and 2012, he made unauthorized transfers of the couple’s funds, through interstate transactions, into other bank accounts over which he had exclusive control. He systematically withdrew funds for his personal use from various accounts, including one opened as a trust for the couple’s grandchildren. In total, Lee siphoned more than $1 million from the couple.
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Thursday, February 20, 2014
Former Executive Of Oregon Restaurant Chain Accused Of Embezzling $1 Million, Now Faces New Accusations Of Theft From Another Company
From KOIN on 2/20/14:
The former Chief Operating Officer for Typhoon! — who already stands accused of embezzling approximately $1 million from the now defunct popular local restaurant chain — is now accused of embezzling money from a global food distribution company, KOIN 6 News has learned.
Richard Lee Anderson, 56, was arraigned Wednesday in Multnomah County Circuit Court on a grand jury indictment charging him with two counts of first-degree aggravated theft. The new case was opened after investigators received an anonymous tip.
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Court documents obtained by KOIN show that between the periods of May — July 2012 and August –October 2012, Anderson stole approximately $20,000 from food distributor Sysco Corporation.
Multnomah County Deputy District Attorney Kevin Demer, who is prosecuting the case said that based on preliminary information, Anderson worked for Sysco before being hired at Typhoon!.
The new grand jury indictment was issued Feb. 13, 2014.
Investigators learned after Anderson left Typhoon! — which shut down its five locations in February 2012 — he was re-hired at Sysco as a district manager. Officials said one of the clients he was responsible for was Bambuza Vietnam Bistro, which has two restaurant locations on the South Waterfront in Portland and in Hillsboro.
Anderson is accused of “padding” Bambuza’s invoice by adding extra food items, like chicken and bread. The items, not ordered by Bambuza, but reportedly added on by Anderson, would be listed as will-call. Anderson would then pick up the extra items himself and then sell them on the side, court documents allege.
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The former Chief Operating Officer for Typhoon! — who already stands accused of embezzling approximately $1 million from the now defunct popular local restaurant chain — is now accused of embezzling money from a global food distribution company, KOIN 6 News has learned.
Richard Lee Anderson, 56, was arraigned Wednesday in Multnomah County Circuit Court on a grand jury indictment charging him with two counts of first-degree aggravated theft. The new case was opened after investigators received an anonymous tip.
...
Court documents obtained by KOIN show that between the periods of May — July 2012 and August –October 2012, Anderson stole approximately $20,000 from food distributor Sysco Corporation.
Multnomah County Deputy District Attorney Kevin Demer, who is prosecuting the case said that based on preliminary information, Anderson worked for Sysco before being hired at Typhoon!.
The new grand jury indictment was issued Feb. 13, 2014.
Investigators learned after Anderson left Typhoon! — which shut down its five locations in February 2012 — he was re-hired at Sysco as a district manager. Officials said one of the clients he was responsible for was Bambuza Vietnam Bistro, which has two restaurant locations on the South Waterfront in Portland and in Hillsboro.
Anderson is accused of “padding” Bambuza’s invoice by adding extra food items, like chicken and bread. The items, not ordered by Bambuza, but reportedly added on by Anderson, would be listed as will-call. Anderson would then pick up the extra items himself and then sell them on the side, court documents allege.
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Former CEO Of Illinois Credit Union Sentenced For Embezzling $1.9 Million; Gambling Addiction Blamed
From Credit Union Times on 2/19/14:
Anne Schaal, the former president/CEO of the $1.9 million, 492-member Aurora Firefighters Credit Union, will spend 30 days in jail for embezzling more than $36,000 from the Aurora, Ill.-based institution.
Schaal was also sentenced to 150 days in electronically-monitored home detention and three years on probation for the criminal activity that took place between January 2006 and November 2011, according the Kane County Attorney’s office in St. Charles, Ill.
As part of a plea deal with the Kane County prosecutors, the 67-year-old Schaal pleaded guilty to one felony count of theft on Feb. 14 in Kane County Court.
A gambling addiction led Schaal to steal from the credit union as well as lose more than $580,000 that belonged to her and her husband, according to The Daily Herald, a Chicago suburban newspaper. In court documents, according to the newspaper, Schaal acknowledged that she became addicted to gambling.
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Anne Schaal, the former president/CEO of the $1.9 million, 492-member Aurora Firefighters Credit Union, will spend 30 days in jail for embezzling more than $36,000 from the Aurora, Ill.-based institution.
Schaal was also sentenced to 150 days in electronically-monitored home detention and three years on probation for the criminal activity that took place between January 2006 and November 2011, according the Kane County Attorney’s office in St. Charles, Ill.
As part of a plea deal with the Kane County prosecutors, the 67-year-old Schaal pleaded guilty to one felony count of theft on Feb. 14 in Kane County Court.
A gambling addiction led Schaal to steal from the credit union as well as lose more than $580,000 that belonged to her and her husband, according to The Daily Herald, a Chicago suburban newspaper. In court documents, according to the newspaper, Schaal acknowledged that she became addicted to gambling.
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Wisconsin Man Indicted For Allegedly Embezzling $300K In Vendor Fraud & Kickback Conspiracy Scheme
From the Sheboygan Press on 2/19/14:
A Manitowoc man is facing multiple federal indictments after allegedly embezzling more than $300,000 from his Sheboygan employer.
Paul H. Lachappelle Jr., 40, was indicted by a grand jury Wednesday on four counts of tax evasion and 10 counts of wire fraud after an investigation found he embezzled from Nemschoff Chairs, according to a press release from Criminal Investigation Division of the Internal Revenue Service.
According to the indictment: Lachappelle, a maintenance technician, began stealing parts from Nemschoff in 2009.
After taking the parts, he completed acquisition requests for replacement parts, which were ordered from a supplier in Florida.
Unbeknownst to Nemschoff, Lachappelle had entered into an agreement with the vendor where he received a 50 percent kickback on the value of the order by sending the replacement parts back to the supplier.
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A Manitowoc man is facing multiple federal indictments after allegedly embezzling more than $300,000 from his Sheboygan employer.
Paul H. Lachappelle Jr., 40, was indicted by a grand jury Wednesday on four counts of tax evasion and 10 counts of wire fraud after an investigation found he embezzled from Nemschoff Chairs, according to a press release from Criminal Investigation Division of the Internal Revenue Service.
According to the indictment: Lachappelle, a maintenance technician, began stealing parts from Nemschoff in 2009.
After taking the parts, he completed acquisition requests for replacement parts, which were ordered from a supplier in Florida.
Unbeknownst to Nemschoff, Lachappelle had entered into an agreement with the vendor where he received a 50 percent kickback on the value of the order by sending the replacement parts back to the supplier.
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Former Pastor Sentenced For Embezzling Some $100K From California Church
From the Press Democrat on 2/19/14:
A former Lake County pastor has been sentenced to three years in state prison for embezzling an estimated $100,000 in cash and property from his church.
Bruce Anthony Stark, 63, of Stockton, was handcuffed and taken into custody Tuesday after the sentence was handed down, said Lake County Deputy District Attorney Sharon Lerman-Hubert.
Stark, who served as pastor of the Hilltop Apostolic Church in Clearlake from 2002 to 2008, had pleaded guilty in December to one count of grand theft, she said. The plea could have resulted in a sentence that ranged from probation to three years, Lerman-Hubert said.
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Stark's wife, Shanell Stark, the church's one-time treasurer, previously pleaded guilty to a misdemeanor, Lerman-Hubert said.
Bruce Stark's thefts included cash, a van and land parcels that belonged to the church, Lerman-Hubert said. He reportedly borrowed money against the property.
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A former Lake County pastor has been sentenced to three years in state prison for embezzling an estimated $100,000 in cash and property from his church.
Bruce Anthony Stark, 63, of Stockton, was handcuffed and taken into custody Tuesday after the sentence was handed down, said Lake County Deputy District Attorney Sharon Lerman-Hubert.
Stark, who served as pastor of the Hilltop Apostolic Church in Clearlake from 2002 to 2008, had pleaded guilty in December to one count of grand theft, she said. The plea could have resulted in a sentence that ranged from probation to three years, Lerman-Hubert said.
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Stark's wife, Shanell Stark, the church's one-time treasurer, previously pleaded guilty to a misdemeanor, Lerman-Hubert said.
Bruce Stark's thefts included cash, a van and land parcels that belonged to the church, Lerman-Hubert said. He reportedly borrowed money against the property.
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Former Finance Officer Of Florida Resort Charged With Embezzling Nearly $2.4 Million
From MLive Media Group on 2/20/14:
A 68-year-old former financial executive for a Naples, Fla., resort community, now living in Montague, faces three counts of wire fraud for embezzlement of more than $2.3 million.
Alfred W. Lenz, 68 of 4876 Townsend Ct., was indicted by a federal grand jury in the U.S. Middle District Court of Florida in Fort Myers. He was taken into custody last week in Montague by federal authorities and faced charges in Florida before being released on a $10,000 unsecured bond.
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According to the indictment, Lenz was the controller of the Vineyards Development Corp. in Naples, Fla., from March 2005 to April 2012. Between 2007 and 2010, while the corporation’s controller, federal prosecutors accused Lenz of embezzling $2,380,465 from his employer.
Lenz used the money to purchase real estate and for other personal expenses, according to Bentley.
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Update (1/10/2015): Lenz was sentenced to 57 months in federal prison. See an update of the story here.
A 68-year-old former financial executive for a Naples, Fla., resort community, now living in Montague, faces three counts of wire fraud for embezzlement of more than $2.3 million.
Alfred W. Lenz, 68 of 4876 Townsend Ct., was indicted by a federal grand jury in the U.S. Middle District Court of Florida in Fort Myers. He was taken into custody last week in Montague by federal authorities and faced charges in Florida before being released on a $10,000 unsecured bond.
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According to the indictment, Lenz was the controller of the Vineyards Development Corp. in Naples, Fla., from March 2005 to April 2012. Between 2007 and 2010, while the corporation’s controller, federal prosecutors accused Lenz of embezzling $2,380,465 from his employer.
Lenz used the money to purchase real estate and for other personal expenses, according to Bentley.
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Update (1/10/2015): Lenz was sentenced to 57 months in federal prison. See an update of the story here.
New Jersey Doctor Pleads Guilty To Embezzling $1.1 Million From Medical Practice
From the Middletown Patch on 2/19/14:
A pain management doctor with a Red Bank-based practice admitted Wednesday that he embezzled more than $1.1 million from the business, U.S. Attorney Paul J. Fishman announced.
Robert Muscio, 40, of Colts Neck pleaded guilty to one count of committing mail fraud to embezzle the funds.
Between 2007 and 2008, Muscio misused his position as medical director of a practice with which he is no longer associated to write checks on the practice’s bank account to pay his personal expenses, the U.S. Attorney's Office said in a press release. To conceal this his partners, Muscio falsely described the payments as business expenses of the practice.
The mail fraud count is punishable by a maximum sentence of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 21, 2014.
A pain management doctor with a Red Bank-based practice admitted Wednesday that he embezzled more than $1.1 million from the business, U.S. Attorney Paul J. Fishman announced.
Robert Muscio, 40, of Colts Neck pleaded guilty to one count of committing mail fraud to embezzle the funds.
Between 2007 and 2008, Muscio misused his position as medical director of a practice with which he is no longer associated to write checks on the practice’s bank account to pay his personal expenses, the U.S. Attorney's Office said in a press release. To conceal this his partners, Muscio falsely described the payments as business expenses of the practice.
The mail fraud count is punishable by a maximum sentence of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 21, 2014.
Maine Woman Pleads Guilty To Embezzling $3 Million From Bank
From the Kennebec Journal on 2/18/14:
A Bucksport woman accused of improperly transferring nearly $3 million from financial clients has pleaded guilty to embezzlement and filing false tax returns.
Lynn M. Bowden, 62, pleaded guilty in U.S. District Court and faces up to 30 years in prison and significant fines on the embezzlement charge, U.S. attorney Thomas E. Delahanty announced Wednesday. Bowden also faces up to five years in prison and a fine of up to $250,000 on the false tax return charge.
Bowden was accused of making 108 deposits and transfers of customer funds into her personal accounts from April 4, 2005, to Sept. 26, 2012, while she worked at Merrill Merchants Bank and Chittenden Corp. Those deposits and transfers totaled more than $2.99 million, according to Delahanty.
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A Bucksport woman accused of improperly transferring nearly $3 million from financial clients has pleaded guilty to embezzlement and filing false tax returns.
Lynn M. Bowden, 62, pleaded guilty in U.S. District Court and faces up to 30 years in prison and significant fines on the embezzlement charge, U.S. attorney Thomas E. Delahanty announced Wednesday. Bowden also faces up to five years in prison and a fine of up to $250,000 on the false tax return charge.
Bowden was accused of making 108 deposits and transfers of customer funds into her personal accounts from April 4, 2005, to Sept. 26, 2012, while she worked at Merrill Merchants Bank and Chittenden Corp. Those deposits and transfers totaled more than $2.99 million, according to Delahanty.
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Wednesday, February 19, 2014
Former Teacher In Florida Pleads Guilty To Embezzling $157K In Fraudulent Reimbursement Scheme
From WCTV on 2/19/14:
A former Leon County school teacher who pled guilty to grand theft will spend a year in jail and pay back thousands of dollars in restitution to the school system.
Tammy Bennett was accused of stealing money from Chiles High School where she was a teacher and worked on the yearbook program.
Investigators said she would make up reimbursements for herself that ended up being false claims, such as: travel, equipment purchases and supply purchases.
Her attorney said she was guilty for some of the false reimbursements, but said some of the missing money came from a bookkeeping mistake.
Auditors estimate she cost the school district close to $200,000. At her sentencing Tuesday afternoon, the judge sentenced Bennett to 11 months and 29 days in jail and ordered her to pay back an amount just short of $157,000 between Leon County Schools and a yearbook insurance company.
...
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A former Leon County school teacher who pled guilty to grand theft will spend a year in jail and pay back thousands of dollars in restitution to the school system.
Tammy Bennett was accused of stealing money from Chiles High School where she was a teacher and worked on the yearbook program.
Investigators said she would make up reimbursements for herself that ended up being false claims, such as: travel, equipment purchases and supply purchases.
Her attorney said she was guilty for some of the false reimbursements, but said some of the missing money came from a bookkeeping mistake.
Auditors estimate she cost the school district close to $200,000. At her sentencing Tuesday afternoon, the judge sentenced Bennett to 11 months and 29 days in jail and ordered her to pay back an amount just short of $157,000 between Leon County Schools and a yearbook insurance company.
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Oregon Woman Sentenced For Embezzling $225K From Auto Dealership To Finance Lavish Lifestyle
From The Oregonian on 2/18/14:
When the jury returned with a guilty verdict, Rick Jones and Kristina Kaino-Smith wept.
Jones shed tears of relief. His three-year quest for justice had ended. Kaino-Smith, a once-trusted friend and employee who stole $225,000, would be going to prison.
Kaino-Smith worked for Rick Jones Motor Co. as a bookkeeper and office manager. She also handled his personal finances.
For 18 months, Kaino-Smith forged Jones' name on checks she wrote to herself. Jones' money paid for Hawaiian vacations, spa visits, expensive make-up, gifts, and shopping trips to Nordstrom, Target, Victoria's Secret among other retailers.
"She was a big shopper," said prosecutor Sarah Dumont.
A jury found Kaino-Smith, 42, guilty on several counts of forgery, first-degree theft and first-degree aggravated theft. Clackamas County Circuit Judge Douglas Van Dyk sentenced her Tuesday to 3½ years in prison.
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When the jury returned with a guilty verdict, Rick Jones and Kristina Kaino-Smith wept.
Jones shed tears of relief. His three-year quest for justice had ended. Kaino-Smith, a once-trusted friend and employee who stole $225,000, would be going to prison.
Kaino-Smith worked for Rick Jones Motor Co. as a bookkeeper and office manager. She also handled his personal finances.
For 18 months, Kaino-Smith forged Jones' name on checks she wrote to herself. Jones' money paid for Hawaiian vacations, spa visits, expensive make-up, gifts, and shopping trips to Nordstrom, Target, Victoria's Secret among other retailers.
"She was a big shopper," said prosecutor Sarah Dumont.
A jury found Kaino-Smith, 42, guilty on several counts of forgery, first-degree theft and first-degree aggravated theft. Clackamas County Circuit Judge Douglas Van Dyk sentenced her Tuesday to 3½ years in prison.
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Read the whole story here.
Pennsylvania Man Pleads Guilty To Embezzling $9 Million From Drilling Company; Blames Gambling Addiction
From the Pittsburgh Post-Gazette on 2/18/14:
Larry Dean Winckler, former chief operating officer of Marcellus shale gas firm Falcon Drilling LLC, pleaded guilty today to federal charges of conspiracy, mail fraud and filing false tax returns, after a prosecutor outlined his embezzlement of $9 million, much of it spent on gambling.
Mr. Winckler, 53, of Indiana, Pa., could face five or six years in prison following a sentencing hearing set for May 30.
Assistant U.S. Attorney Greg Melucci said that Mr. Winckler worked with the company’s controller and an auto parts dealer to funnel money out of the firm from 2004 through 2012.
He wrote checks in the tens of thousand of dollars, sometimes many times in a single month, which he disguised through fake purchases for parts and drill bits, Mr. Melucci said.
The prosecutor said that Mr. Winckler had an “enormous gambling problem” and lost much of the money at casinos in Pennsylvania, New Jersey and New York.
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Update (1/27/15): Winckler was sentenced to 96 months in prison and ordered to pay $10,206,425 in restitution.
Larry Dean Winckler, former chief operating officer of Marcellus shale gas firm Falcon Drilling LLC, pleaded guilty today to federal charges of conspiracy, mail fraud and filing false tax returns, after a prosecutor outlined his embezzlement of $9 million, much of it spent on gambling.
Mr. Winckler, 53, of Indiana, Pa., could face five or six years in prison following a sentencing hearing set for May 30.
Assistant U.S. Attorney Greg Melucci said that Mr. Winckler worked with the company’s controller and an auto parts dealer to funnel money out of the firm from 2004 through 2012.
He wrote checks in the tens of thousand of dollars, sometimes many times in a single month, which he disguised through fake purchases for parts and drill bits, Mr. Melucci said.
The prosecutor said that Mr. Winckler had an “enormous gambling problem” and lost much of the money at casinos in Pennsylvania, New Jersey and New York.
...
Read the whole story here.
Update (1/27/15): Winckler was sentenced to 96 months in prison and ordered to pay $10,206,425 in restitution.
Virginia Woman & Former Bookkeeper Sentenced To 3 Years For Embezzling $110K
From the News & Advance on 2/18/14:
A Lynchburg woman convicted of stealing more than $100,000 from a Bedford business will serve three years in prison and is ordered to pay the money back, an uphill task she said in court Tuesday she will do anything to fulfill.
Vickie Elkins McPhearson, former bookkeeper of Witt Mechanical, pleaded guilty in November to three counts of embezzlement and three counts of money laundering. While taking the witness stand on her own behalf Tuesday in a Bedford County Circuit Court hearing, McPhearson said she has asked God and her family to forgive her, and seeks forgiveness from Jeff Witt, her former employer.
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A Lynchburg woman convicted of stealing more than $100,000 from a Bedford business will serve three years in prison and is ordered to pay the money back, an uphill task she said in court Tuesday she will do anything to fulfill.
Vickie Elkins McPhearson, former bookkeeper of Witt Mechanical, pleaded guilty in November to three counts of embezzlement and three counts of money laundering. While taking the witness stand on her own behalf Tuesday in a Bedford County Circuit Court hearing, McPhearson said she has asked God and her family to forgive her, and seeks forgiveness from Jeff Witt, her former employer.
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Ohio Woman Charged With Embezzling $100K In Forgery Scheme
From WFMJ on 2/18/14:
Bond is set at $2,500 dollars for a former bookkeeper accused of embezzling nearly $100-thousand from a Goshen Township business.
50-year-old Kay Tuttle of Salem was arraigned in Mahoning County Common Pleas Court on Tuesday on charges of theft and forgery.
The Mahoning County Grand Jury handed up an indictment in the case earlier this month.
The crimes allegedly occurred when Tuttle kept the financial books for Quality Fabricated Metals on West Middletown Road.
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Bond is set at $2,500 dollars for a former bookkeeper accused of embezzling nearly $100-thousand from a Goshen Township business.
50-year-old Kay Tuttle of Salem was arraigned in Mahoning County Common Pleas Court on Tuesday on charges of theft and forgery.
The Mahoning County Grand Jury handed up an indictment in the case earlier this month.
The crimes allegedly occurred when Tuttle kept the financial books for Quality Fabricated Metals on West Middletown Road.
Read the story here.
Minnesota Man Involved In Incredible $6.3 Million Embezzlment Saga
From the Pioneer Press on 2/18/14:
The saga has betrayal, blackmail and even a longtime mistress. And then there's the millions of dollars allegedly embezzled from one of St. Paul's best-known businessmen. In a court document filed Friday, federal prosecutors laid out the case they plan to present to a jury next week when John Joseph Waters Jr. goes on trial, accused of stealing from his longtime boss and friend, the late Gerard Leon Cafesjian, the retired West Publishing executive whose name is on St. Paul's famous carousel. Assistant U.S. Attorney William Otteson wrote in a pretrial brief that Waters engineered a scheme to embezzle millions from Cafesjian and that the scam lasted for years. "Waters used the stolen money to satisfy the expensive personal spending habits of himself, his family, and a mistress whom he was secretly supporting for years," Otteson wrote. The alleged embezzlement totaled $4 million, the government claims, and he gave more than $700,000 of it "to his mistress, Cheri Kuhn (now Cheri Waters), whom he met at the Deja Vu nightclub in the late 1990s and with whom he was having a long-term affair," Otteson wrote. Waters, 57, of Eden Prairie has pleaded not guilty to the charges. In August, he was named in a 26-count federal indictment accusing him of mail and wire fraud, income tax evasion and filing a false income tax return. His trial is scheduled to begin Feb. 24 in U.S. District Court in Minneapolis.
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Read the whole story here.
The saga has betrayal, blackmail and even a longtime mistress. And then there's the millions of dollars allegedly embezzled from one of St. Paul's best-known businessmen. In a court document filed Friday, federal prosecutors laid out the case they plan to present to a jury next week when John Joseph Waters Jr. goes on trial, accused of stealing from his longtime boss and friend, the late Gerard Leon Cafesjian, the retired West Publishing executive whose name is on St. Paul's famous carousel. Assistant U.S. Attorney William Otteson wrote in a pretrial brief that Waters engineered a scheme to embezzle millions from Cafesjian and that the scam lasted for years. "Waters used the stolen money to satisfy the expensive personal spending habits of himself, his family, and a mistress whom he was secretly supporting for years," Otteson wrote. The alleged embezzlement totaled $4 million, the government claims, and he gave more than $700,000 of it "to his mistress, Cheri Kuhn (now Cheri Waters), whom he met at the Deja Vu nightclub in the late 1990s and with whom he was having a long-term affair," Otteson wrote. Waters, 57, of Eden Prairie has pleaded not guilty to the charges. In August, he was named in a 26-count federal indictment accusing him of mail and wire fraud, income tax evasion and filing a false income tax return. His trial is scheduled to begin Feb. 24 in U.S. District Court in Minneapolis.
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Read the whole story here.
Former Head Of Jewish Congregation In California Admits To Embezzling $390K
From San Diego Jewish World on 2/15/14:
The just departed executive director of Adas Israel Congregation has admitted to intentionally stealing at least $390,000, deceptive record keeping and illegal transferring of funds from a California synagogue during the time he was executive director there.
Eric S. Levine, who was asked to resign on Tuesday (Feb. 11) from the D.C. synagogue after being executive director for about a month, “apologized and did not deny any of the accusations,” Sonia Israel, president of the Beth El Congregation in La Jolla, Calif., announced in a letter sent to congregants Feb. 12.
Levine, of Bethesda, allegedly stole the money over a five-year period, beginning in 2008, Israel noted. He likely will face time in jail if the California congregation decides to press charges and Levine is found guilty.
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Read the whole story here.
The just departed executive director of Adas Israel Congregation has admitted to intentionally stealing at least $390,000, deceptive record keeping and illegal transferring of funds from a California synagogue during the time he was executive director there.
Eric S. Levine, who was asked to resign on Tuesday (Feb. 11) from the D.C. synagogue after being executive director for about a month, “apologized and did not deny any of the accusations,” Sonia Israel, president of the Beth El Congregation in La Jolla, Calif., announced in a letter sent to congregants Feb. 12.
Levine, of Bethesda, allegedly stole the money over a five-year period, beginning in 2008, Israel noted. He likely will face time in jail if the California congregation decides to press charges and Levine is found guilty.
...
Read the whole story here.
West Virginia Woman Charged With Embezzling Possibly More Than $1 Million From Local College; Also Charged With Extortion
From The Review on 2/15/14:
A local woman was taken into custody Friday by the Wheeling office of the FBI in relation to an embezzlement case at Bethany College in West Virginia.
Charged with extortion, Rachelle Weese, 26, was escorted to a waiting FBI vehicle outside her Cricket Lane home by St. Clair Township police Chief Don Hyatt after FBI and township officers converged on the house in the early afternoon.
According to William J. Ihlenfeld II, U.S. attorney for the Northern District of West Virginia, the federal extortion charge is a felony and alleges Weese used violence or fear to extort money from Shelly Lough, West Liberty, former manager of the cashier's office at the college.
The criminal complaint against Weese alleges she threatened to reveal to Lough's husband that Lough was in a relationship outside her marriage if she did not pay money.
Although original reports last October indicated the amount allegedly taken by Lough to be about $500,000, Ihlenfeld said Friday it now appears the amount may have been more than $1 million.
...
Read the whole story here.
A local woman was taken into custody Friday by the Wheeling office of the FBI in relation to an embezzlement case at Bethany College in West Virginia.
Charged with extortion, Rachelle Weese, 26, was escorted to a waiting FBI vehicle outside her Cricket Lane home by St. Clair Township police Chief Don Hyatt after FBI and township officers converged on the house in the early afternoon.
According to William J. Ihlenfeld II, U.S. attorney for the Northern District of West Virginia, the federal extortion charge is a felony and alleges Weese used violence or fear to extort money from Shelly Lough, West Liberty, former manager of the cashier's office at the college.
The criminal complaint against Weese alleges she threatened to reveal to Lough's husband that Lough was in a relationship outside her marriage if she did not pay money.
Although original reports last October indicated the amount allegedly taken by Lough to be about $500,000, Ihlenfeld said Friday it now appears the amount may have been more than $1 million.
...
Read the whole story here.
Washington State Tribal Employee Pleads Guilty To Embezzling $115K From Child Welfare Department
From the Seattle Post-Intelligencer on 2/14/14:
A Suquamish tribal employee pleaded guilty in federal court in Tacoma on Friday to embezzlement from an tribal organization after siphoning more than $115,000 in checks and food vouchers from the tribe's child welfare department.
Renee Pearl Peleti was the employee responsible for distributing checks to Indian Child Welfare Department (ICW) clients and had the ability to request checks from the tribe's financial office and manipulate the amounts, according to the court complaint.
The ICW assists tribal families and children with food, clothing and school supplies.
Detectives believe Peleti wrote herself about 261 checks totaling $88,747 and paid $2,893 in fraudulent checks to her personal Puget Sound Energy account, court records indicate.
...
Read the whole story here.
A Suquamish tribal employee pleaded guilty in federal court in Tacoma on Friday to embezzlement from an tribal organization after siphoning more than $115,000 in checks and food vouchers from the tribe's child welfare department.
Renee Pearl Peleti was the employee responsible for distributing checks to Indian Child Welfare Department (ICW) clients and had the ability to request checks from the tribe's financial office and manipulate the amounts, according to the court complaint.
The ICW assists tribal families and children with food, clothing and school supplies.
Detectives believe Peleti wrote herself about 261 checks totaling $88,747 and paid $2,893 in fraudulent checks to her personal Puget Sound Energy account, court records indicate.
...
Read the whole story here.
Tennessee Woman Pleads Guilty To Embezzling More Than $200K From Union
From the Lebanon-Democrat on 2/14/14:
An executive secretary for a union told investigators she stole more than $200,000 from the organization to lift her spirits, according to federal court records.
An executive secretary for a union told investigators she stole more than $200,000 from the organization to lift her spirits, according to federal court records.
Reda Overton has struck a deal to plead guilty in U.S. District Court in the Eastern District of Tennessee to charges of embezzlement and theft of labor union assets.
According to the plea agreement, Overton stole just more than $206,000 from the Locomotive Engineers International Brotherhood of Teamsters General Committee of Adjustments, a labor union whose members include employees of Norfolk Southern Railway.
Overton worked as an executive secretary for the union, although the plea agreement does not indicate where in East Tennessee her office was located. Her thievery, according to records, spanned more than three years – from December 2008 to March 2012.
The plea agreement states Overton stole from the union by overpaying herself, transferring thousands of dollars at a time to her personal bank account.
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Update (11/11/2014): Overton has been sentenced to 18 months in prison.
South Carolina Woman Sentenced For Embezzling $130K From Auto Dealership
From the Jasper County Sun:
A former employee of a group of local car dealerships was sentenced to two years in prison on Thursday, for embezzling more than $130,000 over a three-year period, according to the 14th Judicial Circuit. Jessica Goodman, 33, of Garnett, pleaded guilty to one count of breach of trust over $10,000. Judge Carmen Mullen sentenced her to the prison time to be followed by five years of probation and the repayment of $133,064.
Goodman, who worked in the accounting department of the New River Auto Mall, stole the money between October 2009 and October 2012. The money was traced to her bank account at Wells Fargo in Bluffton.
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A former employee of a group of local car dealerships was sentenced to two years in prison on Thursday, for embezzling more than $130,000 over a three-year period, according to the 14th Judicial Circuit. Jessica Goodman, 33, of Garnett, pleaded guilty to one count of breach of trust over $10,000. Judge Carmen Mullen sentenced her to the prison time to be followed by five years of probation and the repayment of $133,064.
Goodman, who worked in the accounting department of the New River Auto Mall, stole the money between October 2009 and October 2012. The money was traced to her bank account at Wells Fargo in Bluffton.
...
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Former Head Of California Non-Profit Charged With Embezzling $140K
From the LA Times on 2/13/14:
The former executive director of a foundation set up to help needy students at Los Angeles Trade Technical College was arrested Thursday on suspicion of embezzlement.
The former executive director of a foundation set up to help needy students at Los Angeles Trade Technical College was arrested Thursday on suspicion of embezzlement.
Jiah Rhea Chung, 43, was arrested by investigators with the Los Angeles County district attorney's office on suspicion of public corruption, including embezzling nearly $140,000 while she served as the foundation's director, according to district attorney's officials.
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Former CFO Charged With Embezzling $600K From Missouri Heathcare Concern
From WAND 17 on 2/13/14:
A southwestern Illinois woman who served as an executive of a business that provides visiting nurses and hospice services for Missouri and Illinois patients is accused of embezzling about $600,000 for personal use.
A federal grand jury in St. Louis has charged 49-year-old Susan Winebarger of Highland, Ill., with two counts of wire fraud.
Authorities say Winebarger was a chief financial officer and later chief executive of VNA-TIP of Bridgeton, Mo.
Investigators allege that from January 2008 and last December, she issued checks to herself from company accounts and hid the embezzlement by altering bank statements and internal financial reports.
...
Read the story here.
A southwestern Illinois woman who served as an executive of a business that provides visiting nurses and hospice services for Missouri and Illinois patients is accused of embezzling about $600,000 for personal use.
A federal grand jury in St. Louis has charged 49-year-old Susan Winebarger of Highland, Ill., with two counts of wire fraud.
Authorities say Winebarger was a chief financial officer and later chief executive of VNA-TIP of Bridgeton, Mo.
Investigators allege that from January 2008 and last December, she issued checks to herself from company accounts and hid the embezzlement by altering bank statements and internal financial reports.
...
Read the story here.
Massachusetts Man, Previously Charged With Animal Cruelty, Now Charged With Embezzling $130K From Elderly Woman
From UPI on 2/12/14:
A Polish immigrant in Massachusetts charged with abusing the dog known as "Puppy Doe" has been charged with stealing from the elderly woman he cared for.
Bail was set at $500,000 on the new charges Tuesday for Radoslaw Czerkawski, 32, the Boston Herald reported. Czerkawski, allegedly in the United States illegally, was already held without bail on 12 counts of animal cruelty. ... Czerkawski lived with Janina Stock, 95, in Quincy, Mass., from January to her death in August, investigators say. Her family hired him because he spoke Polish and paid him $1,500 a month. Prosecutors say that in March Czerkawski took Stock to the bank, claimed to be her grandson and arranged for $130,000 in assets to be placed in a joint account.
...
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A Polish immigrant in Massachusetts charged with abusing the dog known as "Puppy Doe" has been charged with stealing from the elderly woman he cared for.
Bail was set at $500,000 on the new charges Tuesday for Radoslaw Czerkawski, 32, the Boston Herald reported. Czerkawski, allegedly in the United States illegally, was already held without bail on 12 counts of animal cruelty. ... Czerkawski lived with Janina Stock, 95, in Quincy, Mass., from January to her death in August, investigators say. Her family hired him because he spoke Polish and paid him $1,500 a month. Prosecutors say that in March Czerkawski took Stock to the bank, claimed to be her grandson and arranged for $130,000 in assets to be placed in a joint account.
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Pennsylvania Couple Charged With Embezzling $150K From Local Electric Company; Kept Stealing To Repay Initial Theft After Being Caught
From the Daily Local News on 2/11/14:
Two people were arrested last week at the conclusion of an investigation into the alleged embezzlement and theft of about $150,000 from an area electric company.
According to the West Goshen Police Department, in October detectives began investigating a case of suspected fraud at Alfred J. Fry III, Inc., or Fry Electric, that involved substantial embezzlement of company funds and thefts of company-owned tools.
Police said the company’s former office manager and accountant, 45-year-old Stephanie Matusky, submitted fictitious receipts on behalf of her fiance, 38-year-old Edward Charsha, who worked at the company as a mechanic. Both Matusky and Charsha live in the 4900 block of Horseshoe Pike in Caln.
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After the thefts were discovered, the couple was allowed to keep their jobs under the condition that they repay the misappropriated funds back to the company, according to police.
When Matusky and Charsha began to repay at a suspicious rate, the company began to examine computer and email records that revealed Charsha was selling large amounts of electrical construction equipment on online auction sites. Police said that when the company’s president confronted Charsha about the missing equipment he admitted to stealing and selling the items to repay the initial debt.
At that point Charsha and Matusky were both fired, police said.
...
Read the whole story here.
Two people were arrested last week at the conclusion of an investigation into the alleged embezzlement and theft of about $150,000 from an area electric company.
According to the West Goshen Police Department, in October detectives began investigating a case of suspected fraud at Alfred J. Fry III, Inc., or Fry Electric, that involved substantial embezzlement of company funds and thefts of company-owned tools.
Police said the company’s former office manager and accountant, 45-year-old Stephanie Matusky, submitted fictitious receipts on behalf of her fiance, 38-year-old Edward Charsha, who worked at the company as a mechanic. Both Matusky and Charsha live in the 4900 block of Horseshoe Pike in Caln.
...
After the thefts were discovered, the couple was allowed to keep their jobs under the condition that they repay the misappropriated funds back to the company, according to police.
When Matusky and Charsha began to repay at a suspicious rate, the company began to examine computer and email records that revealed Charsha was selling large amounts of electrical construction equipment on online auction sites. Police said that when the company’s president confronted Charsha about the missing equipment he admitted to stealing and selling the items to repay the initial debt.
At that point Charsha and Matusky were both fired, police said.
...
Read the whole story here.
Former Ohio Cop Pleads Guilty To Embezzling More Than $250K In Government Property
From WBNS-10TV on 2/12/14:
A former Columbus Police Officer has pleaded guilty to selling equipment the department received through a government program.
Steven Edward Dean, 49, pleaded to misappropriating and selling heavy equipment and other property that the police received through a Defense Department surplus program.
An investigation revealed that Dean embezzled heavy equipment, construction vehicles, and restaurant equipment. He then sold the items online or for scrap metal.
Dean pleaded guilty to one count of embezzlement from a program receiving federal funds and one count of theft of public property. Each crime carries a maximum sentence of ten years imprisonment.
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A former Columbus Police Officer has pleaded guilty to selling equipment the department received through a government program.
Steven Edward Dean, 49, pleaded to misappropriating and selling heavy equipment and other property that the police received through a Defense Department surplus program.
An investigation revealed that Dean embezzled heavy equipment, construction vehicles, and restaurant equipment. He then sold the items online or for scrap metal.
Dean pleaded guilty to one count of embezzlement from a program receiving federal funds and one count of theft of public property. Each crime carries a maximum sentence of ten years imprisonment.
...
Read the whole story here.
Indiana Woman Sentenced For Embezzling $178K From Her Employer
From the Associated Press on 2/12/14:
A former administrative assistant for a Boonville, Ind., company was sentenced to federal prison Tuesday for embezzling $149,000 from her employer.
Cindy L. McDaniel, 42, of Boonville, pleaded guilty to bank fraud and filing false tax return charges.
She appeared in U.S. District Court at Evansville where Chief Judge Richard L. Young sentenced her to 21 months in prison and ordered her to repay more than $178,000 to Concrete Pavers, Inc. and the Internal Revenue Service, according to court officials.
McDaniel worked as bookkeeper and office manager for the company. She used pass codes that she acquired from a password generating device issued by Regions Bank to access and transfer funds belonging to her employer into her personal bank account, according to court records.
The transfers happened between June 1, 2009, and July 4, 2011, and the company had deposited the money in Regions Bank in order to pay employee withholding taxes, court records said.
...
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A former administrative assistant for a Boonville, Ind., company was sentenced to federal prison Tuesday for embezzling $149,000 from her employer.
Cindy L. McDaniel, 42, of Boonville, pleaded guilty to bank fraud and filing false tax return charges.
She appeared in U.S. District Court at Evansville where Chief Judge Richard L. Young sentenced her to 21 months in prison and ordered her to repay more than $178,000 to Concrete Pavers, Inc. and the Internal Revenue Service, according to court officials.
McDaniel worked as bookkeeper and office manager for the company. She used pass codes that she acquired from a password generating device issued by Regions Bank to access and transfer funds belonging to her employer into her personal bank account, according to court records.
The transfers happened between June 1, 2009, and July 4, 2011, and the company had deposited the money in Regions Bank in order to pay employee withholding taxes, court records said.
...
Read the whole story here.
California Woman Pleads Guilty To Embezzling Some $450K In Public Funds From Foster Care Agency She Ran
From the Temecula Patch on 2/11/14:
Temecula resident Vivian Lieska Benn, 40, pleaded guilty Tuesday to two counts of embezzlement by a public officer in a plea agreement at the Riverside Hall of Justice.
The former owner and CEO of a Riverside foster family agency pleaded guilty Tuesday to embezzlement and was immediately sentenced to three years and four months in prison.
Temecula resident Vivian Lieska Benn, 40, pleaded guilty to two counts of embezzlement by a public officer in a plea agreement at the Riverside Hall of Justice.
Benn, who ran Family Hope Foster Family Agency, also admitted to a sentence-enhancing allegation of committing multiple felonies in the taking of more than $100,000 and less than $500,000, according to the Riverside County District Attorney's Office.
One count Benn pleaded guilty to is for embezzlement from 2004 to 2009 and the second count is for crimes from 2010 to 2012. Two other counts were dismissed as part of the plea deal. Both sides also agreed to a restitution amount of $450,000, according to the District Attorney's Office.
...
Read the whole story here.
Temecula resident Vivian Lieska Benn, 40, pleaded guilty Tuesday to two counts of embezzlement by a public officer in a plea agreement at the Riverside Hall of Justice.
The former owner and CEO of a Riverside foster family agency pleaded guilty Tuesday to embezzlement and was immediately sentenced to three years and four months in prison.
Temecula resident Vivian Lieska Benn, 40, pleaded guilty to two counts of embezzlement by a public officer in a plea agreement at the Riverside Hall of Justice.
Benn, who ran Family Hope Foster Family Agency, also admitted to a sentence-enhancing allegation of committing multiple felonies in the taking of more than $100,000 and less than $500,000, according to the Riverside County District Attorney's Office.
One count Benn pleaded guilty to is for embezzlement from 2004 to 2009 and the second count is for crimes from 2010 to 2012. Two other counts were dismissed as part of the plea deal. Both sides also agreed to a restitution amount of $450,000, according to the District Attorney's Office.
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Read the whole story here.
Wednesday, February 12, 2014
Former Cemetary Manager In New York Charged With Embezzling $2 Million; Prior Manager Embezzled $850K
From the Wall Street Journal on 2/10/14:
Update (2/6/2015): Griffin plead guilty to the embezzlement charges. Read an update of the story here.
New York's attorney general has accused the former acting president of the nonprofit United Hebrew Cemetery on Staten Island of embezzling $2 million.
Authorities allege 54-year-old Timothy Griffin of Ridgefield, Conn., made six unauthorized wire transfers to his own attorney escrow account from October 2012 through last month.
Griffin pleaded not guilty to grand larceny charges Monday in state court. Bail was set at $250,000 cash.
Attorney General Eric Schneiderman says Griffin, former outside counsel to the cemetery, was appointed acting president after its former administrator and president were accused of embezzling more than $850,000 in a prior investigation by his office.
...Read the story here.
Update (2/6/2015): Griffin plead guilty to the embezzlement charges. Read an update of the story here.
Monday, February 10, 2014
New Mexico Man Sentenced To 5+ Years For Embezzling $500+K
From the Associated Press on 2/7/14:
A 32-year-old man from southeastern New Mexico has been sentenced to just over five years in prison and ordered to pay restitution of nearly $502,000 on convictions for fraud and identity theft.
Roger Baeza of Jal (was charged in October 2012 with 81 counts accusing him of defrauding two businesses that employed him as an accountant.
He pleaded guilty in June, admitting he embezzled money, misused a company credit card and wrong himself a $5,000 check, all during 2012.
...Read the story here.
Pennsylvania Man Sentenced To 25 Months In Prison For Embezzling $780K
From TribLIVE.com on 1/7/14:
Hat tip: FraudTalk reader Joe.
A Richland man will spend two years and one month in prison for embezzling more than $718,000 from his company's pension plan over several years, a federal judge ruled Friday.
Merrill J. Druggs, 67, pleaded guilty in October to making false statements and concealing information on pension plan documents. He was a tax manager for Oerlikon USA Holding Inc. of Export, a subsidiary of Swiss conglomerate Oerlikon Group, and a trustee for a pension plan covering about 1,400 people, prosecutors say.
...Read the story here.
Hat tip: FraudTalk reader Joe.
Pennsylvania Man To Be Sentenced For Embezzling $100K From Charter School & Non-Profit; Continued To Steal While Under Investigation
From the Philadelphia Inquirer on 2/10/14:
Read the whole story here.
One question will take center stage Monday when Masai Skief is sentenced for embezzling from the charter school he ran: Did he forfeit a chance at a lower sentence by continuing to steal money from the school - even after pleading guilty to two counts of wire fraud?
Skief, 32, son of the late founder of the Harambee Institute of Science Technology Charter School, pleaded guilty in federal court in August to embezzling $88,000 from the charter and from the Harambee Institute, a related nonprofit. He is the eighth Philadelphia charter school official to plead guilty to federal fraud charges.
Skief has been in federal custody since Jan. 16, when he turned himself in after admitting he violated terms of his bail by continuing to steal from Harambee.
In a court filing, prosecutors said that because of the "audacious and repeated nature" of Skief's fraud, they were seeking a sentence of at least 37 months in prison instead of the 21 to 27 months they originally recommended.
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Saturday, February 8, 2014
Michigan Woman Pleads Guilty To Embezzling $141K
From the Charlevoix Courier on 2/8/14:
A Charlevoix woman pleaded guilty Friday to embezzling more than $140,000 from her former employer.
In a plea deal with the Charlevoix County Prosecutor’s Office, Heather Marie Webb, 33, pleaded guilty in the 33rd Circuit Court to stealing between $50,000 to $100,000 from her job. The felony — with a maximum penalty of up to 15 years in prison — was a reduction from the original charge of embezzling more than $100,000. The original charge carries a maximum 20-year prison sentence.
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Update (2/28/14): Webb was sentenced to 1 year in prison and order to pay $141,587 to her former employer, NuCore North.
A Charlevoix woman pleaded guilty Friday to embezzling more than $140,000 from her former employer.
In a plea deal with the Charlevoix County Prosecutor’s Office, Heather Marie Webb, 33, pleaded guilty in the 33rd Circuit Court to stealing between $50,000 to $100,000 from her job. The felony — with a maximum penalty of up to 15 years in prison — was a reduction from the original charge of embezzling more than $100,000. The original charge carries a maximum 20-year prison sentence.
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Read the whole story here.
Update (2/28/14): Webb was sentenced to 1 year in prison and order to pay $141,587 to her former employer, NuCore North.
Friday, February 7, 2014
Former Head Of New Jersey Non-Profit Indicted In $380K Embezzlement Conspiracy Scheme - Twin Brothers Also Charged
From NJ.com on 2/6/14:
The former executive director of an East Orange-based non-profit developer of low-income housing was arrested today on charges she had embezzled more than $380,000 from the corporation, the Essex County Prosecutor’s Office said in a statement this evening.
Lancie Marchan, 64, who headed the East Orange Revitalization and Development Corporation, used the money for trips, hotel stays, visits to casinos and gifts, among other things, the statement said.
An indictment unsealed today alleges that Marchan, who was being paid an annual salary of $93,163.50, embezzled the money between 2005 and 2010.
At the time, EORDC was partnering with a private corporation to build a low-income development, called the Princeton Estates Phase II Project, with partial funding from HUD.
The indictment also alleges that Marchan’s twin 66-year-old brothers, Arthur Werts, of Chesterfield, Va., and Artemus Werts, of Plainfield – both of whom have experience in the financial and non-profit industries – helped their sister embezzle and launder the funds.
...Read the whole story here.
Thursday, February 6, 2014
USVI Fugitive Arrested In California - Suspected Of Embezzling $122K From Real Estate Clients
From the San Diego Union-Tribune on 2/5/14:
A 62-year-old woman suspected of fleeing the Virgin Islands four years ago to avoid prosecution for embezzlement was found last week in Fallbrook, the FBI said Wednesday.
A 62-year-old woman suspected of fleeing the Virgin Islands four years ago to avoid prosecution for embezzlement was found last week in Fallbrook, the FBI said Wednesday.
Rosemary Sauter-Frett, also known as Rosemary Sauter, was arrested Jan. 30 at a residence in the North County community,
The former St. Thomas resident was found after the FBI’s San Diego office received a tip from the FBI office in San Juan, Puerto Rico regarding her possible location, Special Agent Darrell Foxworth said.
Sauter-Frett was arraigned Monday in federal court in San Diego on a charge of fleeing to avoid prosecution. Jailed without bail, she is due back in federal court in San Diego on Feb. 13.
Sauter-Frett is suspected of stealing $122,900 from customers, who thought their money was being held securely in the RE/MAX Dreams Properties escrow account.
...
Read the story here.
Former Treasurer Of Illinois Union Local Sentenced In $149K Embezzlement
From the National Legal & Policy Center on 2/6/14:
On January 8, Natasha Bever, former secretary-treasurer of Communications Workers of America Local 4202, was sentenced in U.S. District Court for the Central District of Illinois to one year and one day in prison and three years of supervised release for embezzling funds from the Rantoul, Ill. (near Champaign-Urbana) union. She also was ordered to pay the remaining $55,759 in restitution plus a $100 special assessment. Bever had been indicted in January 2013 on one count of embezzlement in the amount of $117,378, and pleaded guilty in June to stealing $149,404.
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Read the story here.
On January 8, Natasha Bever, former secretary-treasurer of Communications Workers of America Local 4202, was sentenced in U.S. District Court for the Central District of Illinois to one year and one day in prison and three years of supervised release for embezzling funds from the Rantoul, Ill. (near Champaign-Urbana) union. She also was ordered to pay the remaining $55,759 in restitution plus a $100 special assessment. Bever had been indicted in January 2013 on one count of embezzlement in the amount of $117,378, and pleaded guilty in June to stealing $149,404.
...
Read the story here.
Former Record Company Exec In NYC Charged With Embezzling Over $1 Million To Support Lavish Lifestyle
From Singersroom.com on 2/6/14:
After both an internal and criminal investigation, former Warner Music executive Danielle Smith appeared in a Manhattan court yesterday concerning charges of first-degree larceny for allegedly embezzling money from the company. Smith put in a plea of not guilty.
What exactly did she plead not guilty to? Well, she has been accused of charging over one million dollars to Warner's credit card for personal expenses and lavish items.
Smith was granted an expense card while working for Atlantic Records, a Division of Warner Music Group, in which her responsibilities included booking travel and hotel arrangements for potential talent. Although she wasn't considered talent, she reportedly racked up fees for hotel rooms, airfare, and products according to prosecutors. All this spending Smith was allegedly doing took place between 2007-2011, the same year Smith resigned.
....
Read the story here.
After both an internal and criminal investigation, former Warner Music executive Danielle Smith appeared in a Manhattan court yesterday concerning charges of first-degree larceny for allegedly embezzling money from the company. Smith put in a plea of not guilty.
What exactly did she plead not guilty to? Well, she has been accused of charging over one million dollars to Warner's credit card for personal expenses and lavish items.
Smith was granted an expense card while working for Atlantic Records, a Division of Warner Music Group, in which her responsibilities included booking travel and hotel arrangements for potential talent. Although she wasn't considered talent, she reportedly racked up fees for hotel rooms, airfare, and products according to prosecutors. All this spending Smith was allegedly doing took place between 2007-2011, the same year Smith resigned.
....
Read the story here.
Wyoming Woman Sentenced To Prison In $257K Embezzlement Case
From the Casper Star-Tribune on 1/6/14:
A woman convicted of embezzling from a local company was ordered to pay restitution of more than $250,000 and sentenced to up to ten years in prison Wednesday in Natrona County District Court.
Melissa Fenster, who was originally charged with 14 counts — including 11 felonies — related to stealing from her former employer, Rocky Mountain Oilfield Warehouse, was convicted on four felony counts as part of a plea agreement and sentenced to no less than two and one-half years in prison.
...
Read the whole story here.
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| Melissa Fenster |
Melissa Fenster, who was originally charged with 14 counts — including 11 felonies — related to stealing from her former employer, Rocky Mountain Oilfield Warehouse, was convicted on four felony counts as part of a plea agreement and sentenced to no less than two and one-half years in prison.
...
Read the whole story here.
Search Warrants Thrown Out In Northern California $287K Embezzlement Case
From the Press-Democrat on 2/5/14:
A Sonoma County judge Wednesday threw out two search warrants leading to the arrest of a former Santa Rosa Junior College police officer accused of embezzling $287,000 from campus parking machines.
Judge Ken Gnoss said the warrants requesting GPS monitoring and credit report information for Jeff Holzworth, 52, were obtained illegally.
But Gnoss said there were sufficient grounds for a third warrant to search Holzworth's Santa Rosa home, his pickup truck and his police car, where prosecutors said they found enough evidence to make their case against him.
...Read the whole story here.
Former Nebraska Union Official Accused Of Embezzling $103K
From the Associated Press on 2/6/14:
A February trial has been scheduled for a former Nebraska union leader who declined at the last minute to take a plea deal in his embezzlement case.
Ray Lineweber, 67, was in federal court in Lincoln on Tuesday to enter a plea, but his attorney told U.S. Magistrate Judge Cheryl Zwart that Lineweber would not take the prosecution’s offer.
An April trial has been scheduled for a former Nebraska union official accused of embezzling nearly $103,000.
The Lincoln Journal Star says (http://bit.ly/1kgOMTq ) Ray Lineweber, of Lincoln, faces 29 counts on charges of embezzlement, mail fraud and falsifying union records.
Prosecutors say the Lineweber stole the money from the United Transportation Union between January 2008 and May 2012, when he was legislative director for the union's Nebraska State Legislative Board 30. The federal indictment says Lineweber misled the union in expense reports requesting reimbursement for food, entertainment, travel and other expenses.
...Update (12/4/14): Lineweber refuses plea deal:
A February trial has been scheduled for a former Nebraska union leader who declined at the last minute to take a plea deal in his embezzlement case.
Ray Lineweber, 67, was in federal court in Lincoln on Tuesday to enter a plea, but his attorney told U.S. Magistrate Judge Cheryl Zwart that Lineweber would not take the prosecution’s offer.
Prosecutors have said Lineweber stole nearly $103,000 from the United Transportation Union when he was legislative director for the union’s Nebraska State Legislative Board 30.
Update 1/12/15): Lineweber reaches plea agreement:
An April sentencing has been scheduled for a retired Nebraska union leader who pleaded guilty to embezzling more than $100,000 in union funds.
Ray Lineweber entered his plea Friday after striking a deal with prosecutors who promised to seek the dismissal of 28 other counts, according to the Lincoln Journal Star (http://bit.ly/1DP9GQG ). Lineweber had rejected a plea deal offer last month.
Assistant U.S. Attorney William Mickle said evidence shows Lineweber embezzled nearly $103,000 from the United Transportation Union between January 2008 and May 2012, when he was legislative director for the union's Nebraska State Legislative Board 30. Lineweber said in court Friday that he used the money on union members.
"I felt what I was doing was right," Lineweber told U.S. Magistrate Judge Cheryl Zwart. But he acknowledged that he used some of the money for himself.
Mickle said Lineweber asked the union to reimburse him for money he spent on food and entertainment, mileage and fees for dinners he said he'd hosted and trips. But Mickle said Lineweber made up those expenses and took the reimbursement money for his own use. The prosecutor said there's no evidence Lineweber used any of the money for union purposes.
Lineweber could get up to five years in prison and be fined up to $250,000 when he's sentenced on April 17. Mickle said the government also will seek restitution.
Update 1/12/15): Lineweber reaches plea agreement:
An April sentencing has been scheduled for a retired Nebraska union leader who pleaded guilty to embezzling more than $100,000 in union funds.
Ray Lineweber entered his plea Friday after striking a deal with prosecutors who promised to seek the dismissal of 28 other counts, according to the Lincoln Journal Star (http://bit.ly/1DP9GQG ). Lineweber had rejected a plea deal offer last month.
Assistant U.S. Attorney William Mickle said evidence shows Lineweber embezzled nearly $103,000 from the United Transportation Union between January 2008 and May 2012, when he was legislative director for the union's Nebraska State Legislative Board 30. Lineweber said in court Friday that he used the money on union members.
"I felt what I was doing was right," Lineweber told U.S. Magistrate Judge Cheryl Zwart. But he acknowledged that he used some of the money for himself.
Mickle said Lineweber asked the union to reimburse him for money he spent on food and entertainment, mileage and fees for dinners he said he'd hosted and trips. But Mickle said Lineweber made up those expenses and took the reimbursement money for his own use. The prosecutor said there's no evidence Lineweber used any of the money for union purposes.
Lineweber could get up to five years in prison and be fined up to $250,000 when he's sentenced on April 17. Mickle said the government also will seek restitution.
Kentucky Woman Accused Of Embezzling $313K In Phony Tax Return Scheme To Fuel Lavish Lifestyle; Remains At Large
From the Lexington Herald-Leader on 2/5/14:
Police are seeking a Lexington woman accused of embezzling thousands of dollars from an apartment complex and faking tax returns and bank loans to support a lavish lifestyle on a $40,000 income.
Yarelis Rios is wanted on outstanding arrest warrants, Lexington police spokeswoman Sherelle Roberts said Wednesday. She said she couldn't comment further or detail the charges involved. But a federal affidavit filed in U.S. District Court in Lexington states that "there is an active state arrest warrant for Rios regarding her embezzlement ... and she remains a fugitive."
Rios vanished in December, shortly after police and federal agents began an investigation, the affidavit says.
Now, federal prosecutors contend that Rios' home on Rockminster Road "represents proceeds of forged checks, identity theft, wire fraud and money laundering," according to a complaint filed by Assistant U.S. Attorney Wade Napier. Prosecutors are seeking to have the property forfeited to the government.
An affidavit filed by U.S. Secret Service Agent Nevada Gump in support of the complaint describes how Rios allegedly bought a $425,000 home, expensive vehicles, big-screen TVs, home appliances and large quantities of brand-name clothing, jewelry, watches and accessories on a reported annual income of $40,000.
The affidavit says Rios embezzled thousands of dollars from Thoroughbred Cross apartments on Village Drive, which she managed starting about March 2012. It also alleges that Rios completed fake income tax returns using people's names — apparently without their knowledge — and arranged for $313,000 in tax refunds to go into bank accounts controlled by her and her boyfriend, Artemio Ultrera Pimentel.
In addition, Rios used faked W-2 forms, altered pay stubs and faked bank statements to help secure an $80,000 home loan from Whitaker Bank, the affidavit says. ...
Read the whole story here.
Police are seeking a Lexington woman accused of embezzling thousands of dollars from an apartment complex and faking tax returns and bank loans to support a lavish lifestyle on a $40,000 income.
Yarelis Rios is wanted on outstanding arrest warrants, Lexington police spokeswoman Sherelle Roberts said Wednesday. She said she couldn't comment further or detail the charges involved. But a federal affidavit filed in U.S. District Court in Lexington states that "there is an active state arrest warrant for Rios regarding her embezzlement ... and she remains a fugitive."
Rios vanished in December, shortly after police and federal agents began an investigation, the affidavit says.
Now, federal prosecutors contend that Rios' home on Rockminster Road "represents proceeds of forged checks, identity theft, wire fraud and money laundering," according to a complaint filed by Assistant U.S. Attorney Wade Napier. Prosecutors are seeking to have the property forfeited to the government.
An affidavit filed by U.S. Secret Service Agent Nevada Gump in support of the complaint describes how Rios allegedly bought a $425,000 home, expensive vehicles, big-screen TVs, home appliances and large quantities of brand-name clothing, jewelry, watches and accessories on a reported annual income of $40,000.
The affidavit says Rios embezzled thousands of dollars from Thoroughbred Cross apartments on Village Drive, which she managed starting about March 2012. It also alleges that Rios completed fake income tax returns using people's names — apparently without their knowledge — and arranged for $313,000 in tax refunds to go into bank accounts controlled by her and her boyfriend, Artemio Ultrera Pimentel.
In addition, Rios used faked W-2 forms, altered pay stubs and faked bank statements to help secure an $80,000 home loan from Whitaker Bank, the affidavit says. ...
Read the whole story here.
Former IT Manager Pleads Guilty To Embezzling $150+K From Virginia Non-Profit
From The Washington Post on 2/5/14:
The former manager of a non-profit’s technology department has pleaded guilty to embezzling more than $150,000.
Fifty-five-year-old Paul F. Kaufman of Stafford, Va., pleaded guilty to theft concerning a program receiving federal funds on Wednesday in federal court in Washington. He faces up to 30 months in prison at sentencing May 8.
...Read the whole story here.
Wednesday, February 5, 2014
North Carolina Man Charged With Embezzling $132K From Father-In-Law's Business
From the Montgomery Herald on 2/4/14:
A local businessman, David Deaton, made a point to be in the right place last Thursday so he could watch his soon his soon-to-be ex-son-in-law, Michael Parrish, arrested and led off in handcuffs. Parrish was being charged with 34 counts of embezzling from the business his father-in-law, Deaton, owned.
Deaton hired Parrish in February 2012 shortly before he married Deaton’s stepdaughter Kerry. Since that time Parrish has used the store’s business accounts, credit cards, cash and inventory to the tune of $132,000; however, Troy Police Chief Kenny Allen said they are only able to charge Parrish on $85,640 of the $132,000. The remaining funds are too intermingled in the business to prove a definite theft; however, those funds will probably be allowed in a civil suit that is expected to be filed against Parrish.
Federal Authorities Investigating $250K Embezzlement With Local Pennsylvania Guardianship Agency
From the Observer-Reporter on 2/5/14:
Read the whole story here.
The Social Security Administration is investigating the alleged embezzlement of funds from a Cambria County guardianship agency, which handles the finances of incapacitated people under its care.
According to a source close to the matter, more than a quarter of a million dollars has been bilked from the accounts of several dozen wards.
The nonprofit agency, Distinctive Human Services, serves as legal guardian to elderly and disabled people assigned to its care by the courts because they are unable to handle their affairs.
...
Read the whole story here.
Tuesday, February 4, 2014
Former Maine Bank Loan Officer Pleads Guilty To Fraud Charges In $14 Million Embezzlement Case
From the Associated Press on 2/4/14:
A former Maine bank loan officer has pleaded guilty to federal fraud and tax evasion charges, using his position to authorize over $14 million in fraudulent loans and lines of credit for 16 years.
A former Maine bank loan officer has pleaded guilty to federal fraud and tax evasion charges, using his position to authorize over $14 million in fraudulent loans and lines of credit for 16 years.
Court documents say 56-year-old Walter Scott Fox, formerly of Cumberland, authorized the loans at Casco Northern Bank and its successor, KeyBank using people's identities without their knowledge or consent.
Prosecutors say Fox used over $5.8 million of the proceeds to keep the loans current and prevent the detection of his scheme. He used almost $8.2 million for personal expenses. The income wasn't reported to the Internal Revenue Service.
...
Read the story here.
North Carolina Authorities Investigating $200K Church Embezzlement
From Sanfordncnews.com on 2/3/14:
Detectives of the Lee Sheriff’s Department are investigating the embezzlement of more than $200,000 from Grace Chapel Church on Jefferson Davis Highway. The incident which has been going on since 2007 was reported to authorities last week. The report comes on the heels of a reorganization at the church.
Former Church Secretary In Mississippi Indicted For Allegedly Embezzling $537K
From WTVA on 2/4/14:
The former secretary of the First Baptist Church in Pontotoc has pleaded not guilty to charges she took over $500,000 from the church.Read the story here.
The Pontotoc County grand jury handed down the four count indictment against Laura L. Franklin, 64, of Pontotoc.
Franklin is accused of taking money and other property for her own use from the church.
She is also accused of issuing a check for more $500 for her own use and using the church's credit cards to buy Ole Miss football tickets.
Court documents say the total amount in dispute is $537,277.74.
...
Connecticut Woman Accused Of Embezzling $100K
From the Waterbury Republican-American on 2/4/14:
Read the whole story here (subscription required).
Police arrested a Wallingford woman and charged her with embezzling about $100,000 from a Watertown manufacturing company, according to court documents.
Lorraine Cappello, 59, of 42 Dutton Road, worked as a financial controller for PM Engineered Solutions, a powdered metals and plastics molding manufacturer on Commercial Street, according to court records.
...
Read the whole story here (subscription required).
Saturday, February 1, 2014
Former Pastor Suspected In $200K North Carolina Church Embezzlement; Had Prior Criminal Record With $4 Million Embezzlement In the 80s
From the Fayetteville Observer on 2/1/14:
Grace Chapel Church reported an embezzlement of $200,000 over a seven-year period to the Lee County Sheriff's Office on Thursday.
The report was filed just over two months after the resignation of Grace's senior pastor, the Rev. Rudy Holland, who once ran a church in Virginia that was the subject of an embezzlement investigation of nearly $4 million in the 1980s.
Grace Chapel, on U.S. 1 just south of Sanford, and Grace employee William Ernest Carver Jr., 68, are listed as the two victims in the Lee County Sheriff's Office's investigation report. The report does not list suspects, but according to chief detective Capt. Jeff Johnson, persons of interest are being investigated.
"We're looking at seven years of bank and credit card records," Johnson said Friday. "And it involves more than one person."
...Read the whole story here.
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