County Deputy Sheriff In Virginia Sentenced For Embezzling $229K

Public corruption is endemic, even in law enforcement circles.  From the Washington Post on 6/17/2016:

Claiming not to remember the past decade was not a good way try to escape hard time — at least not for Frank Pearson, a former Loudoun County sheriff’s deputy sentenced Friday to three years in prison for embezzlement.

Pearson, who from 2010 to 2013 stole $229,000 in forfeited assets he was charged with overseeing, maintained throughout his trial that he had amnesia covering 10 years.

U.S. District Judge T.S. Ellis III, who presided over Pearson’s bench trial and found him guilty, said Friday that he does not believe the claim.

“You may have convinced yourself that you don’t remember these events,” Ellis said, but “your claim of amnesia doesn’t resonate with me.”

Defense attorneys said before the trial that in October 2013, after Pearson’s wife found him unresponsive on the bathroom floor of the family’s home, he woke up thinking the year was 2001 and he was unable to recognize friends he had met after that year.

Ellis noted Friday that a physician was unable to confirm Pearson’s memory loss and had deemed the ex-deputy fit to stand trial.

“I grew up in a society where corruption was rife,” said Ellis, who was born in Colombia. “Corruption by government can kill a society.”

Prosecutors noted that not all of the lost funds have been accounted for. The night before he was due to meet with supervisors who had grown suspicious, Pearson was seen leaving the office with two boxes that another deputy said contained rolls of coins.
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Former City Finance Manager In California Reportedly Embezzled Nearly $5 Million From Municipality

From the Orange County Register on 6/8/2016:

City officials have revealed that Placentia’s former finance services manager allegedly embezzled nearly $5 million from the financially fragile city – about $600,000 more than first believed.

Initially, authorities believed Michael Minh Nguyen had embezzled $4.3 million, but the ongoing investigation has uncovered an additional $600,000 in missing funds. Authorities say they have seized $2.7 million of that money.

“The city is working diligently to seek court authorization to have the funds transferred back,” Placentia City Administrator Damien Arrula wrote in an email Wednesday night.

Also, a $1 million insurance policy may help the city recoup additional money.

“The forensic audit is estimated to be completed in July, at which point in time the city will have sufficient information to prepare its insurance claim,” Arrula said. “After the submittal, there is a review process, which will be conducted by the insurance carrier. ”

Prosecutors allege that Nguyen made 17 illegal wire transfers from city funds from January 2014 to April 2016 to several accounts belonging to him and others. Prosecutors initially believed the embezzlement scheme began in April 2015.

Councilman Scott Nelson said he is optimistic that the city will recover most of the missing funds.
“It looks like we are going to be very fortunate to get most of the taxpayers’ money back.” Nelson said. “That’s really thanks to our staff and the D.A. doing a great, great job.”
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Former Fire District Administrator In Arizona Indicted For Allegedly Embezzling Nearly $1.8 Million

From the Associated Press on 5/11/2016:

Authorities say a woman who oversaw finances for the former Show Low Fire District embezzled nearly $1.8 million over several years.

A Navajo County grand jury recently indicted Natalie Cluff on multiple felony charges. She’s scheduled for an arraignment Monday.

Her father, former Show Low Fire District Chief Ben Owens Sr., also is accused of financial crimes.
The charges came after the state auditor general’s office looked into the district’s finances. The report released Tuesday found that Cluff unlawfully issued hundreds of checks between February 2005 and June 2012 and submitted fake audits.
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Read the whole story here: http://www.abqjournal.com/772405/former-az-fire-district-administrator-faces-felony-charges.html

2 Former Army Personnel Sentenced For Embezzling $2.7 Million While Stationed in Saudi Arabia

From the DOJ on 3/20/2015:

NEWNAN, Ga. - Jasen Minter and Louis E. Nock have each been sentenced to four years, nine months in prison for stealing more than $2.7 million from a United States Government bank account while they were on active duty in the United States Army stationed in Riyadh, Saudi Arabia.
“This was an egregious abuse of trust by two former U.S. Army soldiers who had access to millions of dollars of government money,” said Acting U.S. Attorney John Horn.  “Their conduct betrayed their trust and honor as servicemembers and took substantial funds away from the United States Military Training Mission in Saudi Arabia.”

J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the sentencing of both former U.S. Army Captain Jasen Minter and Sgt. First Class Louis Nock will finally hold them accountable for their criminal actions in stealing over two million dollars in government monies, it remains to be seen if they will be able to repay the government in spite of the fact that, as part of their sentencing, they are ordered by the court to do so.  While both Minter and Nock were stationed in Saudi Arabia, their purpose as Finance Officers was to support the war fighter through the U.S.
Military Training Mission.  They, instead, literally sent boxes of U.S. cash back to the States for their own personal gain. This has been an extensive and protracted investigation initiated by the U.S. Army Criminal Investigative Division and the Department of Defense- Office of Inspector General. The FBI will continue to work with its military components in ensuring that U.S. funds designated for military use are used as intended and not diverted to personal bank accounts as was seen in this case.”

“Instead of serving their country honorably while stationed overseas in a sensitive assignment, these two U.S. Army finance officers betrayed it by abusing their positions of trust and embezzling more than $2.7 million in American taxpayer funds,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service.  “This sentencing should serve as a constant reminder that DCIS and our law enforcement partners will relentlessly pursue corruption, fraud, and abuse within Department of Defense programs anywhere in the world, and bring violators to justice.”

“This sentencing is another great example of the work our special agents do on a daily basis,” said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “The defendants attempted to profit by compromising the readiness of our servicemembers during a time of war, but this joint investigation unraveled their scheme and now they are being held responsible for betraying the trust placed in them.”

According to Acting U.S. Attorney Horn, the charges and other information presented in court: Minter and Nock served as the Finance Officer and Deputy Finance Officer, respectively, for the United States Military Training Mission in Riyadh, Saudi Arabia from 2006 to 2007. As part of their duties in the Finance Office, Minter and Nock had access to a U.S. government bank account that was held at the Saudi American Bank.

In June 2006, the defendants withdrew approximately $1.2 million in cash from the bank account and kept those funds for their own benefit. In August 2006, they made another withdrawal of more than $1.5 million in cash, and again kept the funds for their own use instead of returning them to the Finance Office. Before leaving Saudi Arabia, both defendants falsely affirmed in Finance Office records that there were no missing funds from the bank account. An audit conducted by the Department of Defense later revealed the theft of funds. 

Jasen Minter, 44, of Fayetteville, Georgia, has been sentenced to four years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,216,617.97.  Minter was convicted on these charges on November 21, 2014, after he pleaded guilty.

Louis E. Nock, 48, of Orlando, Florida, has been sentenced to four years, nine months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,216,617.97 to the United States Army. Nock was convicted of these charges on January 5, 2015, after he pleaded guilty.

Former Municial Treasurer In Illinois Charged With Embezzling More Than $1 Million Over 20 Year Period

From the Cook County State's Attorney's Office on 8/15/2013:

The former treasurer of a suburban township school district that manages finances for multiple school districts and agencies in the western suburbs has been charged with stealing more than $1 million dollars from the organization over a 20 year period, Cook County State’s Attorney Anita Alvarez announced today.

Robert Healy, 54, of LaGrange Highlands, served as the Treasurer of the Lyons Township Trustees of Schools for 24 years from 1988 through 2012.  He has been charged with Theft of Governmental Property, a Class X felony and Official Misconduct, a Class 3 felony for allegedly bilking the organization of  more than $1.5 million. If convicted, Healy faces up to 30 years in prison.  Healy resigned his position in September 2012.

The Lyons Township School’s Treasurer’s Office, located in LaGrange Park, manages more than $280 million in public funds on behalf of 13 school districts and agencies in the western suburbs of Cook County, including Western Springs, LaGrange Park, Lyons, Summit/Argo, LaGrange Highlands, Willow Springs, LaGrange, Burr Ridge, and Justice.  The districts serve over 21,000 school children.

According to prosecutors, the defendant was responsible for maintaining and managing all monies, books and papers belonging to the 13 schools districts and agencies under his control.  This process required Healy to invest school funds and to manage payroll for the 13 school districts and agencies. In his capacity as treasurer, the defendant was entrusted with access to school district funds, and authorized to sign checks and make withdrawals from school district bank accounts for legitimate school business.

Beginning in late 1989 and continuing through April 2012, prosecutors allege that Healy added unauthorized compensation to his bi-monthly paychecks, or issued himself additional salary and benefits totaling $630,346.78.  In addition, from February 2002 through April 2011, the defendant is alleged to have made 105 unauthorized wire transfers out of the Lyons Township Schools’ bank account to his personal bank account totaling $900,853.32.  Healy also made an unauthorized wire transfer in July 2011 to purchase a luxury automobile in the amount of $7,547.51 toward the down payment on the vehicle’s lease.

According to court documents, the total of all unauthorized payments made by defendant, either by check or wire to the defendant or on his behalf was $1,538,747.61.

Healy was arrested on Wednesday and appeared for a bond hearing today at the George Leighton Criminal Courts Building in Chicago, where Cook County Judge James Brown set his bail at $100,000 and continued the case to September 4, 2013.

Former Public Housing Employee In Delaware Under Investigation In $201K Embezzlement Case

From the Associated Press on 3/17/2015:

The Wilmington Housing Authority says federal authorities are investigating allegations that a worker took more than $200,000 from the organization.

Housing Authority Board Chairman Herman Holloway Jr. said Monday that the U.S. Department of Housing and Urban Development is investigating the allegations.

Holloway says $200,987 in rent was taken from Crestview Apartments starting in 2012. The 149-unit building is one of 18 developments the agency operates.

The worker has not been charged but records show the person has left the position.

Indiana Municipal Employee Accused Of Embezzling $430K In Public & Charitable Funds

From WTHR 13 (NBC) on 3/12/2015:

A former Bloomington city employee faces federal charges for stealing about $430,000 in public money and charitable contributions.

Court documents say Judith Seigle used the money for "personal expenses, such as dining, clothing, a vehicle, and multiple credit card debts."

Seigle worked as the office manager for Bloomington's Parks and Recreation Department and did the books for the non-profit Bloomington Community Parks and Recreation Foundation, Inc.

Investigators say both positions gave her access to money and financial records. She is accused of taking approximately $30,000 from the city and about $400,000 from the foundation.

The charges filed Wednesday describe the lengths investigators say Seigle went to in order to conceal the embezzlement for nearly four years, starting in 2010.

Prosecutors say she made personal purchases with foundation credit cards issued to her or to former or deceased Bloomington employees. They also say she diverted checks intended for the Parks Department to the foundation's bank account, and then used the money for herself.

Investigators determined Seigle used "Microsoft Excel to create false bank statement entries, which she then printed, cut, and taped on top of actual bank statements for the Foundation's account. She then scanned or copied these altered statements and provided them to the foundation's executive director and board of directors."

Seigle left her job with the city last October after being questioned about the missing money. She faces one charge of wire fraud. The federal court entered a not guilty plea for her and scheduled a trial for May.

Local County Commissioner In Michigan Pleads Guilty To Embezzling More Than $100K From County Agencies

From The Herald-Palladium on 3/7/2015:

Berrien County Commissioner Robert Wooley on Friday pleaded guilty to felony embezzlement charges, admitting he stole more than $100,000 from the senior citizen center he directed and a smaller amount from a fire department.

Wooley is free on bond pending sentencing April 20 in Berrien County Trial Court.
 After appearing in court for a case conference, he pleaded guilty to charges of embezzlement by agent or trustee over $100,000, which carries a penalty of up to 20 years in prison.

He further pleaded guilty to attempted embezzlement of $20,000 to $50,000, a five-year felony.

The plea was accepted by Judge Sterling Schrock, who asked Wooley a series of questions to establish a factual basis.
 

The 62-year-old Coloma resident admitted that he embezzled more than $100,000 from the North Berrien Senior Center while serving as director from 2007 to August 2014.
 

He further told the court he converted more than $20,000 but less than $50,000 to his own use by writing checks to himself while serving the North Berrien Fire Rescue Department as a board member and part-time bookkeeper from 2011 to 2014.
 

With the guilty plea, Wooley loses his seat on the county Board of Commissioners, a position he has held for 16 years. The county board has scheduled a special meeting for 3 p.m. Monday to acknowledge the vacancy and establish the procedure to appoint someone to fill it.
 

Wooley represented the county board's 1st District, which covers the northern portion of the county.

After being charged with the senior center embezzlement, Wooley continued to fulfill his responsibilities as a county commissioner, attending meetings as recently as Thursday.
 

Following Friday's court session, Wooley's lawyer, Andrew Burch, said his client used the embezzled money for gambling, and at one point he attempted to win enough to repay what was taken.
 

Chief Assistant Prosecutor Jennifer Smith said that under terms of a plea agreement, the original charge of embezzlement from the fire board was reduced to attempt. Also, the prosecutor's office agreed not to file any additional charges stemming from either case.
 

Wooley, in addition to pleading guilty to the two charges, agreed to pay restitution.
 

He was charged in December with embezzling money from the senior center, where he served as director since 1996.
 

Prosecutor Michael Sepic said at the time the charge was filed that about $150,000 was taken over seven years from the senior center at 6648 Ryno Road in Coloma.
 

A state police investigation began in January 2014 after a financial institution reported questionable transfers of money into Wooley's account.
 

Wooley transferred money periodically from senior center accounts to an investment account, police said. He then regularly moved funds from the investment account into his personal account.
 

Shortly after the charge was filed, the fire board discovered through an audit several financial irregularities, including checks that appeared to have forged signatures.
 

Wooley resigned his position on the fire board and police began an investigation.
 

The charge involving embezzlement of money from the fire board was recently authorized by the prosecutor's office. Wooley had not been arraigned on the charge when he appeared in court Friday, but waived his right to a preliminary hearing before pleading guilty.

Colorado Woman Charged With Embezzling At Least $100K But As Much As $1 Million From Local County

From Aspen Public Radio on 3/5/2015:

A former Garfield County employee is going before a judge this morning. Robin McMillan is charged with stealing from the Clerk and Recorder’s office. The District Attorney’s office says she stole hundreds of thousands of dollars from her work. McMillan faces a class three felony of theft of one hundred thousand dollars up to a million dollars. She’s also charged with a class five felony for embezzlement.

McMillan has not entered a plea as of Wednesday afternoon. She was arrested last August after another accountant at the Clerk and Recorder’s office noticed something was wrong.

Forensics are playing a role in the case, and McMillan’s attorney says that report isn’t done yet... and it made not be available for another week or so. The District Attorney’s office says there will likely be an extension to allow McMillan to enter a plea later on.

Former Municipal Town Clerk In Michigan Charged With Embezzling $100K

From The Voice on 2/3/2015:

The severity of charges against former Clay Township Clerk Lisa White was upped Feb. 23 when she was charged with embezzlement greater than $100,000 at the 72nd District Court in Marine City.

White was previously charged with embezzlement by a public official over $50.

Appearing with her attorney, Arthur Garton, she waived her right to a preliminary hearing Feb. 23 before Judge Cynthia Platzer.

She declined to speak about the case and her legal counsel did not return phone calls or a request for comment at the preliminary hearing.

“I generally don’t comment to reporters,” Garton said.

A $50,000 surety cash bond already posted was carried over by Platzer. White has apparently moved from Clay Township, giving the judge a new home address in neighboring Fair Haven.

After the initial charges, White stopped coming to work while still collecting a paycheck of more than $1,200 a week, according to township officials. After the charges came down, she was not allowed access to any information involving township business. She resigned from her positon five months later on Feb. 17.

“Her attorney sent a letter of resignation to the prosecutor,” said Clay Supervisor Artie Bryson. “She will not be fulfilling the rest of her term.”

The township now has 45 days from the resignation to appoint a successor. If they don’t find one by then voters will elect a replacement in May.

St. Clair County Senior Assistant Prosecutor Melissa Keyes did not speculate on why White chose to waive the hearing.  

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Michigan Woman To Face Trial For Embezzling $131K From Local Township; Had Served As Town Clerk

From The Times Herald on 2/23/2015:

Former Clay Township clerk Lisa White will face trial on charges of stealing more than $100,000 from the township.

White, 45, waived her preliminary examination Monday in St. Clair County Judge Cynthia Platzer’s courtroom on charges of embezzlement by a public official and embezzlement of more than $100,000.

White remained quiet while she stood beside her lawyer, Arthur Garton, during much of the court hearing. She told Platzer that she had moved from Harsens Island to an address in Fair Haven.
White declined to comment on the case prior to the hearing.

Police have said White embezzled about $131,000 from the township between 2009 and 2014.
She allegedly added the money to her husband’s salary at the township fire department, and her own salaries as clerk and as captain at the Clay Township Fire Department.

Embezzlement by a public official is a 10-year felony. Embezzlement of $100,000 or more is a 20-year felony.

White resigned her position as clerk last week. She had not been to the township offices since the November election.

She was elected clerk in 2008 and was paid about $55,000 a year as clerk.

Clay Township Supervisor Artie Bryson said anyone interested in completing White’s term as clerk should send a resume and cover letter to supervisor@claytownship.org. White’s term expires Nov. 20, 2016.

The board will consider those applications received.

The township board has 45 days to appoint a new clerk. Otherwise, the matter will be decided in a special election, Bryson said.

In October, Clay Township said it expected it would face about $700,000 in fines from the Internal Revenue Service because of errors made in the clerk’s office.

The Michigan State Police began an investigation into the matter, which led to the embezzlement charge against White in early February.

A second charge of embezzlement of $100,000 or more was added Wednesday.

White served on the township fire department up until the township board of trustees removed her from her position as captain in November.

White’s $50,000 bond was continued at the end of the hearing Monday. A date for White’s circuit court arraignment has not been set.

Mother Of New York Politician Pleads Guilty To Embezzling $197K From Non-Profit

From the New York Daily News on 2/9/2015:

Helene Heastie pleaded guilty to one count of second-degree grand larceny after her arrest for embezzling $197,000 from a nonprofit in the mid-1990s. The new speaker of the Assembly had remained silent about the incident until a statement issued Friday by his spokesman.

For newly anointed Assembly Speaker Carl Heastie, it was a painful moment about which he has remained silent: the arrest and conviction of his mother in the mid-1990s on charges of looting a taxpayer-funded nonprofit that was supposed to help the elderly and sick.

In his first public comments on this incident, Heastie (D-Bronx) addressed what he dubbed “a sad chapter” in his life in a statement issued Friday by his spokesman Michael Whyland in response to questions from the Daily News.

“The lessons imparted to the speaker over the course of a lifetime, including this painful and sad time for his family, included owning up to mistakes and taking responsibility,” Whyland stated.

In 1997 — three years before Heastie was first elected to the Assembly — his mother, Helene, was arrested by the Bronx district attorney and charged with embezzling $197,000 from a nonprofit called the Southeast Bronx Neighborhood Center.

The organization was funded entirely by tax dollars and was supposed to provide home health care to Medicare and Medicaid recipients. Helene Heastie was a high-level employee there for many years.

The DA charged she and a co-worker systematically raided the charity’s bank accounts to pay off credit card debt and make personal purchases. They used a rubber stamp of the charity’s board chairman, a local judge, to authorize checks, including for $5,877 worth of furniture for Helene Heastie's home in the Bronx.

When a co-worker at Southeast Bronx tipped off the chairman to the ruse, Helene Heastie and the co-worker were terminated in November 1995 and arrested in April 1997. On Friday, Whyland called the arrest “a sad chapter in the speaker’s life,” made worse by debilitating illnesses afflicting both his mother and father at the time.

Helene Heastie ultimately pleaded guilty to one count of second-degree grand larceny, a felony, and was sentenced to five years’ probation. She died soon after.

Whyland said Heastie believes the experience underscored the need to ensure nonprofits spend public dollars properly: “That is why Carl Heastie believed then, as he believes now, that every dollar provided to these organizations should be spent on serving those in need.”

Heastie is aware that this is a particularly sensitive issue for him, given the hundreds of thousands of public dollars he’s steered to nonprofits during his 14 years in Albany.

On Sunday, The News reported Heastie sponsored more than $600,000 for a Bronx nonprofit that had no official board, stopped filing tax returns while receiving some of that money, and went bankrupt. Heastie responded, “It was a group that did good work. We give the documentation, but it’s really up to the regulatory agencies to follow through on their paperwork. I didn’t have any involvement in the day-to-day operations. But I will say this, I would expect any organization that gets public funding should follow with the documentation.”

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South Carolina Municipality Sues Bank Over $235K Embezzlement By Former Police Chief

From WGOG on 1/29/2015:

Westminster filed suit this week against the bank with which it maintained its general operating account until  four and a half years ago. The lawsuit, filed by city attorney Derek Enderlin, names First Citzens Bank and former police chief Scott Bannister as defendants. It’s an outgrowth of the embezzlement scheme to which Bannister pleaded guilty last year and was sentenced to a term of two years in prison. The lawsuit blames First Citizens for what it alleges was the bank allowing the scheme “to continue unchecked for years.” It maintains that, in spite of “red flags,” First Citizens cashed or negotiated for Bannister 195 fraudulent checks totaling $235 thousand. The city requests a jury trial and an award of sufficient to compensate it for its loss. One of the conditions of former chief Bannister’s sentence is the requirement that he make restitution in an amount of $113 and a half thousand dollars.

Former California Municipal Government Association Finance Director Suspected In $1.3 Million Embezzlement

From SFGate on 1/31/2015:

The Association of Bay Area Governments official suspected of embezzling $1.3 million has resigned from the agency, an ABAG spokesman has confirmed, although it’s unclear where he was when the resignation was tendered or whether he intends to cooperate with an investigation.

Clarke Howatt, now ABAG’s former director of financial services, is wanted for questioning in the disappearance of $1.3 million from a South of Market fund meant for parks and other public improvements. He has not been indicted and no warrant for his arrest has been issued.

“It appears that Clarke Howatt ... executed a sophisticated scheme to defraud the agency by creating illegitimate documents, creating false identities, and deceiving (ABAG’s Finance Authority for Nonprofits) board and bank trustees to wire these funds,” ABAG Deputy Executive Director Brad Paul said in a statement.

Howatt, who was scheduled to be in New York at a conference this week, has hired a defense attorney, Mary McNamara. She could not be reached for comment. His daughter, reached by telephone Friday, would not comment on Howatt or where he might be.

Paul said Howatt wrote in his resignation letter that “I will make every attempt to get the funds restored” and “I’ll try my best to get the money replaced as soon as I can.”

The money was discovered missing last month during a routine audit of the South of Market Stabilization Fund, a pool of bond money and developer contributions used for neighborhood improvements.

Staff members in the Mayor’s Office of Housing and Community Development contacted ABAG, which acted as a fund trustee along with Union Bank, and discovered that just under $1.3 million had been wired to a Citibank account in La Jolla (San Diego County) controlled by an entity called Urban West for Rincon Developers.

Officials are seeking to determine if Howatt created a fake entity purporting to be the developer of the One Rincon Hill high-rise housing complex and then sought a $1.3 million reimbursement for streetscape improvements that were never made. No one associated with the actual development at One Rincon Hill had anything to do with the request and never saw any of the money, according to Steven Vettel, who represents the actual developer, Urban West Associates.

City Attorney Dennis Herrera’s office has demanded the return of the money and referred the matter to an unnamed law enforcement agency. Because wire fraud may be involved, it would most likely be a federal investigation.

Paul said ABAG has called an emergency meeting for Monday to identify how the missing funds will be replaced.

Howatt’s offices at ABAG, a regional government agency that provides planning and public monetary services to Bay Area cities, were sealed off Friday, and staff members struggled to reconcile the image of a cautious former investment banker with that of an embezzlement suspect.

During his 20 years at ABAG, Howatt built a reputation as a conservative steward of public funds, a risk-averse executive who regularly turned down deals that failed to meet his standards, said colleagues who declined to be identified because of the sensitivity of the situation.

They described him as a Wall Street Journal-reading economics geek whose interest in topics like affordable housing financing programs went beyond his official role at ABAG. The ABAG Finance Authority for Nonprofit Corporations, which Howatt oversaw, helps nonprofits and other borrowers gain access to tax-exempt debt financing.

“He has been a reliable financier of thousands of deals,” an ABAG employee said. “He has been very cautious with public money — anything he felt was not fully indemnified he sent to somebody else.”
Howatt joined ABAG in 1995 from the San Francisco office of Rauscher Pierce Refsnes, a financial services company. Before coming to San Francisco, he was vice president of the health and education finance group at Kidder, Peabody & Co. in New York.

Before his resignation, Howatt earned $149,294 a year in salary and had a total compensation package of $233,375, including benefits. Howatt recently donated more than $5,000 to the Alonzo King Lines Ballet and also has contributed to the San Francisco Bay Trail project.

He lived in a town house in Dublin until September, when he sold the property, according to the current owner.


Update (2/13/2015): Howatt has now been indicted on federal wire fraud charges.  Read an update of the story here.

Former Tribal Finance Manager In Montana Sentenced For Embezzling $156K From Tribal Clinic; Had Prior Fraud Conviction

From the Seattle Post Intelligencer on 1/29/2015:

The former finance manager of a Chippewa Cree tribal clinic in Box Elder has been convicted of embezzling more than $156,000 in federal money provided to the tribe to operate the clinic.

A federal jury convicted Theodora Ann Morsette, 60, on three theft charges Wednesday. U.S. District Judge Brian Morris scheduled sentencing for April 20.

Prosecutors presented evidence that Morsette obtained $156,493 in unauthorized overtime, double pay and other supplemental pay above her $82,000 annual salary from 2010 to 2013. She had worked at the clinic since 1994, when she was convicted and sentenced to three years on probation for embezzling nearly $6,500 while she worked for the federal Bureau of Indian Affairs.

 

Morsette testified that she believed she was entitled to the extra payments from the clinic because she worked hard and because her supervisor approved the payments.

 

Her supervisor, clinic CEO Fawn Tadios, was convicted of using $15,000 in federal money meant for the tribe to visit her husband at a federal prison in South Dakota in 2011. Former Chippewa Cree Chairman Jake Parker Jr. was serving an 11-month sentence after being convicted of putting $59,000 in personal charges on a tribal credit card.

 

Tadios was sentenced to a year in prison, but she is free pending an appeal

Read the story here.

Virginia Man Sentenced To Prison For Embezzling $250K From State Alcoholic Beverage Control Agency

From NBC12 on 1/29/2015:

A former state employee could spend the next ten years in prison for stealing your tax money.
Sentencing for Steven Hammond is scheduled for Thursday afternoon.

Hammond pleaded guilty to federal embezzlement charges after prosecutors say he stole nearly $250,000 while employed with the Virginia Department of Alcoholic Beverage Control.

Hammond, 29, was the education coordinator for ABC, handling the Youth Alcohol Drug Abuse Prevention program, a project that works with Virginia teens to keep their schools and communities drug and alcohol free. Hammond admits to preparing false paperwork for the program which led ABC to issue checks to his friends.

Former Sheriff's Deputy In Illinois Indicted For Allegedly Embezzling $100K+

From Pantograph.com on 1/21/2015:

A former McLean County sheriff's deputy was indicted Wednesday on felony theft charges alleging he stole more than $100,000 from the deputies' police union.

Jay Hobson, 36, of Bloomington faces two counts of theft over $100,000 in which he is accused of taking money from the union between Nov. 2, 2011, and July 28, 2014. He resigned Aug. 15, 2014, shortly after the money was reported missing.

Hobson was booked into the jail late Wednesday afternoon after he turned himself in. He was jailed in lieu of posting $10,025.

Sheriff Jon Sandage, who was elected in November, said Wednesday the charges against Hobson, who worked for the department for 12 years, are unfortunate but not a reflection on the department's 54 sworn officers.

"The majority of our officers realize that someone who does things that gives police a black eye has no business in police work. Every good police officer knows they are held to a higher standard," said Sandage.

In early August, officers with the McLean County Deputies Fraternal Order of Police No. 176 discovered an alleged embezzlement that wiped out its bank account, Deputy Jeremy Bradley said last month.

"We were depleted," said Bradley, union president since January 2014.

The money was intended for a variety of charity efforts, including holiday food baskets for families at The Baby Fold. Bradley said about $4,000 was donated by people in December after a story in The Pantagraph.

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Read the whole story here.

Connecticut Man Charged With Embezzling $808K From Municipality

From WTNH Ch.8 on 1/20/2015:

A former finance director for the town of Plymouth was charged Tuesday with embezzling more than $800,000.

David Bertnagel, 41, was arrested Tuesday morning and presented in U.S. District Court in Hartford on a charge of theft from a local government receiving federal funds. That carries a possible 10-year prison sentence.

According to the criminal complaint from the U.S. attorney’s office, Bertnagel issued 207 checks to himself from October 2011 to October 2014 totaling $808,030.

Bertnagel, who worked for the finance department for more than six years, is accused of using more than $100,000 of the stolen money to buy coins, stamps, highly sought-after Hummel porcelain figurines and other collectibles. Prosecutors said he also used embezzled funds for home improvement projects, mortgage payments and credit card bills.

Bertnagel, who lost his job in November, was released after posting a $250,000 bond. A phone call to his Thomaston home seeking comment Tuesday went unanswered.

According to the complaint, Bertnagel told the FBI that he had been authorized by former Mayor Vincent Festa and former mayoral assistant Theodore Scheidel to make early draws on his pension.

In November, his lawyers provided a photo copy of the paperwork to the town, which turned it over to the FBI.

There is no record of such a contract in City Hall, according to the complaint.

Festa told authorities he didn’t recall any such agreement and doesn’t believe it occurred. Scheidel is deceased.

According to the complaint, the FBI discovered an electronic copy of Festa’s signature on Bertnagel’s computer which appears to be “very similar” to the one on the purported contract.

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Former County Treasurer In Montana Charged With Embezzling $200K

From KTVQ on 1/15/15:

Former Jefferson County Treasurer Patricia O'Neill has been charged with stealing $200,000 from the county.

The charge was filed in Jefferson County District Court this week.

Court documents state that over the period of six years O'Neill is accused of embezzling the funds from the county by "forcing balances" on the county books, receiving funds, recording them as income, and depositing the funds in her personal accounts.

She resigned from her post in April when she told the county clerk and recorder that she'd taken the money.

According to court documents, O'Neill told investigators that she planned to win the lottery and pay the county back.

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Municipal Manager in Pennsylvania Accused Of Embezzling $230K - Trial Delayed

From Trib Total Media on 1/5/2015:

The criminal case against a former Munhall borough manager accused of embezzling more than $230,000 from the borough appears headed toward a resolution.

 

Matt Galla, 44, of West Mifflin was to stand trial Monday on four felony counts of theft by deception, but the case was continued until April 8. A court official said the continuance was granted to give Galla time to gather a lump sum for restitution.

 

Galla's attorney, Brent McCune, said Monday, “We are trying to negotiate a settlement with the commonwealth.”

 

McCune declined to discuss details but said, “The borough feels they're owed some money and we're looking at that. Maybe we can reach an agreement with the government.”

 

Galla was arrested in April on allegations he overpaid himself while working as borough manager between 2010 and 2013. He was released on his own recognizance April 9.

 

Galla, who had a budgeted salary of $60,000, is accused of overpaying himself $12,000 in 2010, $85,000 in 2011, $80,000 in 2012 and $53,000 during the first six months of 2013.

 

This is the second time the trial has been continued. On Sept. 25, McCune requested more time to review documents.

 

According to charging documents, Galla “had the responsibility for payroll, was in the position to intentionally omit payroll reports, and to destroy and/or falsify certain payroll records to disguise certain payroll fraud schemes such as overpayments of payroll to himself, and under-withhold Social Security and federal income tax on his fraudulently inflated pay.”

 

Shortly after Galla's resignation in June 2013, Munhall officials learned that audits had not been completed in 2011 and 2012, among other bookkeeping inconsistencies.

 

The missing audits cost the borough at least $360,000 in Regional Asset District funds from Allegheny County, and the lack of proper documentation made it difficult to obtain a tax anticipation loan last year.

 

Galla has maintained his innocence, stating the borough scapegoated him for refusing to complete audits for 2011 and 2012 because those documents were “rife with corruption.”

 

Galla was hired as a part-time clerk in 2009, and he became manager in December 2010.

This past fall, Galla angered borough officials when he appeared on the CBS game show “The Price is Right” while awaiting trial. In the program, which aired Oct. 3 and was recorded in Los Angeles on Aug. 20, Galla is seen sitting in the front row.

 

Around the time the show aired, Munhall Councilman Joe Ballas said Galla had been ordered not to leave Allegheny County as a condition of his release from county jail and called his appearance on the show “a slap in the face to all the residents of this borough.”

 

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