North Carolina Man Charged With Embezzling $228K From Cellular Company

Bobby Jerome Glass, 41, of Wilmington, North Carolina has been charged with embezzling some $228,000 from Cellular Express where he had been employed as a district manager. Details are scant at this time.

Read the story here and here.

Developing... If anyone has details on this case. Please let us know.

Update: Petters Gets 50 Years For $3.65 billion Ponzi Scheme

Thomas "Tom" J. Petters, 52, of Wayzata, Minnesota, was sentenced to 50 years in prison for running a $3.65 billion Ponzi-type investment fraud scheme, one of the largest ever. Petters was convicted last December on all 20 criminal counts that he faced, including wire fraud, mail fraud and money laundering. The fraud and conspiracy case involved Minnetonka-based Petters Group Worldwide, LLC, his primary holding company, and Petters Company Inc., the investment arm of the group. Petters and his co-conspirators bilked investors who thought their investment money was being using to buy consumer electronics for resale to retailers such as BJ's Wholesale Club and Costco. Several other executives of the company, including Deanna Coleman, Robert White, Michael Catain and Larry Reynolds, who have all previously pleaded guilty in the case.

Read the story here, here and here.

Read FraudTalk's earlier posts on this story here, here, here, here and here.

Former Iowa Bookkeeper Charged With Embezzling Nearly $100K

Michelle Leigh Irving, 39, of Knoxville, Iowa, has been charged with embezzling nearly $100,000 from the Knoxville Raceway where she had been employed as an accounting manager. According to prosecutors, Irving deposited raceway checks into her own accounts. The scheme was uncovered last month when Iowa State Savings Bank notified the Marion County Fair Board, which runs the track. Authorities say their investigation revealed that Irving stole a total of $98,000 over more than a two year period, beginning in January 2007. She was arrested on March 23, 2010 and charged with theft in the first degree, a Class C felony.

Read the story here and here.

Update (8/26/10): Irving pleaded guilty to first degree theft and was sentenced to 5 years probation and restitution.

Former Texas Bookkeeper Sentenced For Misappropriating $427K

Bethie Annette Horn, 48, of Mineola, Texas was sentenced yesterday to 21 months in federal prison for misappropriating more than $427,000 from Donovan White Cabinets where she had been employed as a bookkeeper. Horn, who was originally indicted last October and pleaded guilty to bank fraud charges last December, forged checks issued on the company's Capital One Bank account and then deposited them into her personal bank account. The scheme lasted two years between April 2006 to April 2008. Horn must also pay full restitution in the amount of $427,023.68. Horn blamed her actions in part on health problems.

Read the story here, here and here.

Read the DOJ announcement here.

Hat tip: Reader Joe.

North Carolina Woman Charged WIth Embezzling $187K From Auto Dealership

Joyce Ann McCray, 50, of Monroe, North Carolina, has been charged with embezzling more than $187,000 from Dale Jarrett Ford, a local auto dealership where she had been employed. According to prosecutors, McCray had been embezzling funds from the dealership since 2006. The scheme was discovered late last year when her employer reportedly suspected her of stealing company gift cards. The total amount McCray is suspected of stealing is $187,558.18, according to reports. Her next court hearing is on May 5th.

Read the story here, here and here.

Former Mississippi Court Clerk Sentenced For Embezzling $100+K

Terry Ann Swatsenberg, 46, of Southaven, Mississippi, was sentenced yesterday to 30 months in prison for embezzling more than $100,000 from the municipality for whom she had been employed as a Court Clerk. According to prosecutors, Swatsenberg, who was responsible for processing court fines and bond deposits which were often paid in cash, began taking funds for her own benefit on July 1, 2007. Her scheme reportedly lasted a year over which time she misappropriated a total of $109,000, according to authorities. Swatsenberg had been employed by the municipality since 1996. According to the audit report, “substantial and significant internal control weaknesses” existed in the court department - something the city has moved to change. As part of her sentence, Swatsenberg was ordered to pay $47,000 in restitution, which only covers the cost of the investigation and prosecution. However, the city's insurance carrier claims the total loss was more like $250,000.

Read the story here, here and here.

Florida Woman Charged As Part Of Investigation Into Condo Embezzlement Scheme That Could Reach As Much As $4 Million

Stacey Herrin Snopek Tuck, 35, of North Port, Florida, has been charged on felony counts of Scheme to Defraud and Grand Theft in connection with the alleged misappropriation of more than $100,000 from Chelsea House, a condominium association she had been hired to manage. According to authorities, Herrin-Tuck was employed as a Community Association Manager for Star Hospitality Management, Inc., the management company hired to run the condominium complex known as Charlotte Square, which includes a total of 10 condo associations. Authorities are investigating embezzlement schemes that could total $4 million from all of the associations. The investigation is ongoing into the other possibly related cases. Herrin-Tuck is believed to have started misappropriating association funds in June 2006 and continued until September 2008.

Read the story here here and here.

Pennsylvania Money Manager Accused In $26 Million Ponzi Scheme

Donald Anthony Walker Young, 38, of Coatesville, Pennsylvania, was indicted Thursday on charges he defrauded investors out of some $26 million in a Ponzi-type investment fraud scheme. Specifically, Young was charged with one count of mail fraud and one count of money laundering. According to prosecutors, over at least a four year period, from 2005 to 2009, Young used investment funds entrusted to him through his investment firm, Acorn Capital Management, LLC, to finance a lavish lifestyle that included homes in Florida and Maine as well as a horse farm in Pennsylvania. Young is also accused of paying earlier investors out of new investment funds and creating false investment statements for clients to conceal his fraud. Young faces up to 30 years in prison, plus fines and restitution if convicted on both felony counts.

Read the story here, here and here.

Read the original SEC complaint here.

Former Missouri Office Manager Pleads Guilty To Embezzling $115K

Laura Louise Troutman, 40, of St. Charles, Missouri, pleaded guilty this week to charges she embezzled more than $115,000 in escrow funds from Eaton Properties of St. Louis where she had been employed as an office manager. According to prosecutors, over a three and a half year period, between January 2006 and August 2009, Troutman misappropriated some of the rental payments from tenants. Troutman, who pleaded guilty to one felony count of mail fraud, misappropriated a total of $115,752, according to authorities. Troutman faces up to 30 years in prison plus fines up to $250,000 and restitution upon sentencing, which is scheduled for June 25.

Read the story here, here and here.

Montana Bookkeeper Charged In $123K Embezzlement Case

Joanne Walsh, 44, of Butte, Montana, has been charged with embezzling more than $123,000 from Skill Built Truss, a local company where she had been employed as a bookkeeper. According to prosecutors, Walsh issued herself checks from company accounts over a three year period between 2006 and 2009, totalling $123,595. According to an affidavit filed with the court, Walsh admitted the thefts and claimed she did it to pay support a gambling habit and her disabled daughter. She has plead not guilty to the charges.

Read the story here, here and here.

Update (9/16/10): Walsh reached a plea agreement with prosecutors whereby she pleaded guily to felony theft.

Former Colorado University Official Suspected In $450K Embezzlement Case

An unnamed former administrator at Naropa University, based in Boulder, Colorado, is being investigated by the FBI on suspicion she embezzled some $450,000 from the institution. According to authorities, the suspect misappropriated the funds over a two year period. The university fired its CFO, Sue Evans, and its comptroller, Suree Chounlamountry, for "failure to establish proper controls," although they are reportedly not suspected of any criminal wrongdoing.

Read the story here, here and here.

Update (11/28/10): The unnamed former administrator has been identified as Ronda F. Devers, 41, who was an accounts payable clerk with Naropa University. Devers has been indicted on 18 counts of theft and forgery. She is now believed to have misappropriated $590,871. The thefts allegedly spanned a two year period, from February 2008 until March 2010, according to reports. According to the indictment, Devers took student refund checks, voided them and reissued them to herself or to her unnamed girlfriend.

Indiana Man Charged With Embezzling $1.6 Million

John Keith Branam, 52, of Shelbyville, Indiana, was charged today with bank fraud, money laundering and filing false individual income tax returns in connection with his alleged misappropriation of more than $1.6 million from King's Title & Abstract Company, a local title company he had been employed by. According to authorities, beginning in 2004 until 2007, Branam used several fictitious companies, including Branam Properties, Rocksolid Investments and King's, to misappropriate the funds from King's Title by setting up bank accounts in those names and executing transfers of funds by writing checks. All in, authorities believe Branam embezzled $1,619,819.80 from the company in this manner. Branam, who had been employed by the firm since 1996, was fired in 2007 after the discrepancies were revealed. He was arrested on May 23, 2008, and charged with 11 felonies, including misappropriation of funds, theft and corrupt business influence. If convicted on all counts, Branam faces up to 43 years in prison, plus a fine of up to $1.5 million and restitution.

Read the story here and here.

Embezzlements More Prevalent, Article Says

According to the Jacksonville Financial News & Daily Record, embezzlement cases are more prevalent in recent months "as people in trusted positions improperly stepped over the bottom line." Small businesses and non-profits are particularly hard hit, according to the article, written by Joe Wilhelm, Jr. The article provides some tips on how to avoid an embezzlement, which include:
• Related duties should be assigned to different people. Have a system of checks and balances. Have more than one person sign off on company payments.
• Scrutinize bank statements and reconcile bank statements every month.
• Look at original documents before signing checks or authorizing payment.
• Lock down and check blank checks and signature stamps.
• Secure fidelity bonds and insurance for all accounting and key personnel.
• Know your employees, watch for changes in behavior. Look for trouble signs, such as changes in lifestyle or substance abuse.
• Make sure employees take vacations so they don’t maintain full-time control of any organization business.
• Change computer passwords regularly.
• Perform thorough background checks before hiring any employee.

Read the whole article here.

Of course, The Small Business Fraud Prevention ToolKit is also helpful.

Former Booster Club Treasurer In California Charged In Alleged $175K Embezzlement Case

Herman Wong, 62, of Venice, California, was arrested and charged with one count of grand theft by embezzlement recently with misappropriating as much as $175,000 from the Venice High School Booster Club where he had served as volunteer treasurer for the past 6 years. Wong was reportedly the only bookkeeper for the organization. Details on the case have not fully been released.

Read the story here.

Pennsylvania Woman Admits She Embezzled Nearly $1.5 Million

Terry I. Hershey, 39, of Chambersburg, Pennsylvania, pleaded guilty yesterday to mail fraud, admitting she embezzled nearly $1.5 million from her former employer, Custom Power Services Inc., a local manufacturer of battery-powered generators. Prosecutors alleged that over the course of 7 1/2 years, between April 2002 and September 2009, Hershey wrote at least 276 checks totalling $1,460,633.99 to herself and her creditors to pay personal expenses and enrich herself. Hershey, who was an account manager at the company, then made false entries into the company's books and records in an effort to conceal her thefts. She faces up to 20 years in prison, plus a $250,000 fine and restitution.

Read the story here and here.

Update (8/28/10): Hershey was sentenced to three years in prison for embezzling what is believed to now be more than $1.7 million. She was also ordered to pay full restitution.

Former New York School Administrator Sentenced For Embezzling $562K

Donald Guy Fuller, 50, of Hamburg, New York, was sentenced yesterday to 33 months in prison for embezzling some $562,000 from the prestigious Canisius High School in Buffalo where he had served as facilities director. According to prosecutors, over a span of thirteen years, Fuller fraudulently billed the school 141 times under the name of a fake company, D.J. Mechanical & Supply, for work that was never done, keeping to proceeds for himself. Fuller was also ordered to pay the IRS $150,000 in back taxes on the ill-gotten gains and make full restitution to the school. At his sentencing hearing, Fuller claimed that he stole the money to help support his disabled son.

Read the story here, here and here.