Connecticut Man Accused Of Embezzling $100K From Mobile Home Park He Managed

Ken Sherbacow, 51, believed to be from Avon, Connecticut, has been arrested and charged with embezzling at least $100,000 from Rivermead Inc., a mobile home park based in East Hartford that he had been employed as manager. According to authorities, Sherbacow skimmed money from the business for at least 11 years, dating back as far as 1999, by creating phony invoices and paying for personal expenses with company funds. He was fired last December when the misappropriations came to light after new owners took over the business, according to media reports. Developing... Read the story here.

2 Former Execs Of Pennsylvania Charter School Charged With Embezzling $522K

Hugh C. Clark, 64, of Philadelphia and Ina M. Walker, 58, also of Philadelphia, have been indicted on charges alleging they embezzled some $522,000 from the New Media Technology Charter School in Germantown where they had served as board president and CEO, respectively. According to authorities, Clark and Walker systematically siphoned monies from the charter school to Lotus Academy, a private school they controlled that also housed New Media Charter School operations. They are also accused of financing their other enterprises with the funds, including a restaurant, health food store and web design firm.

Read the story here and here.

Manager At Texas Loan Company Suspected In $100K Embezzlement Scheme

Tomas Gutierrez or Tomar Gutierrez, believed to be in his mid 40s, of Brownsville, Texas, is charged with embezzling at least $100,000 from the Dollar Finance loan company where he had been employed as a supervisor. According to authorities, over a four year period, Gutierrez created phony loans and siphoned funds from auto repossessions. When confronted by investigators, Gutierrez reportedly confessed to the thefts.

Developing...

Read the story here.

Upstate New York Office Manager Charged With Embezzling $600K From Medical Office

Nancy Phillips, 39, of Herkimer, New York, has been charged with embezzling some $600,000 from Mohawk Valley Urology where she had been employed as office manager. According to authorities, Phillips began writing unauthorized checks to herself in November 2005. She is also accused of using the medical practice's business credit card for personal purchases. Phillips' embezzlement continued for five years until November last year. She had been a 10 year employee of the business. According to Oneida County ADA, Bernard Hyman, who is quoted in the Little Falls Times: “There is certainly some correlation between the economy and property thefts like this, but I’m not ready to draw the conclusion that the economy is causing these crimes to increase....a certain level of greed is involved in these crimes, and sometimes people just have the urge to live beyond their means.” Read the story here. We note that the last major embezzlement at a urology practice was when Beverly Morgan, of Collinsville, Mississippi, has pleaded guilty to charges she embezzled nearly $1 million from Urology Clinic of Meridian early last year.

Former Drake University Employee in Iowa Charged With Embezzling More Than $470K

Robert Alex Harlan, 49, has been charged with with five counts of first-degree theft in connection with the embezzlement of more than $470,000 from Drake University in Des Moines, Iowa, where he had been employed as director of student accounts for the past 20 years. According to authorities, Harlan's allegedly misappropriations date back to 2004 and continued until this past March. According to a statement from the university, "University accounting records had been manipulated to allow institutional funds to be converted to an employee's personal use."

Developing...

Read the story here, here and here.

Update (4/20/11): Two audits last year initially missed the embezzlement at Drake University. Read the story here.

Update (4/21/11): Loss put at $600K. Read the story here.

Update (9/27/11): Harlan, pleaded guilty to one felony count of embezzlement of more than $10,000.  He faces up to 10 years in prison.

Update (11/8/11): Harlan has been sentenced to up to 10 years in prison.

Ohio Businessman Pleads Guilty To Embezzling $120K From Employee Paychecks Meant For 401(K) Plans

Cliff A. Gallatin, 56, of Dublin, Ohio, has pleaded guilty to one felony count admitting he embezzled some $120,000 from employee paychecks - funds that were meant to be deposited into their respective 401(K) retirement plans - at American Systems Consulting, Inc., the company he owns and manages. Prosecutors alleged that Gallatin skimmed from the company retirement plan since it was established in 2003. A civil action was brought against the company, Gallatin and his wife, Loree O. Gallatin, 55, in January 2008 by the US Department of Labor in which he was ordered to pay restitution to his victim-employees. In the criminal case, Gallatin faces up to 5 years in prison, plus fines.

Read the story here.

Read the DOL's announcements here and here.

California, Michigan & Pennsylvania Top 1st Quarter 2011 For Major Embezzlement Cases; Vermont Gets Dishonorable Mention

An analysis conducted by Marquet International of major embezzlement cases discovered in the first quarter of 2011 reveals that California, Michigan and Pennsylvania top the list with the highest number of cases, at 10, 8 and 8 new incidents, respectively. Those included are cases where an employee misappropriated at least $100,000 from his or her employer. California has historically topped the list, along with other large states such as New York, Florida, Texas and Illinois. Dishonorable mention goes to tiny Vermont, which had three new major embezzlement cases. On a relatively size basis, Vermont has had more than its unfair share of employee theft cases. In fact, these three build upon the 7 major cases Vermont experienced in 2010. The problem seems to be so dire in the Green Mountain State that the state auditor put forth a plan last month to enact better controls at state agencies and municipalities, which have been hard hit. It is unclear why a state like Vermont has had a disproportionate number of major employee thefts. One small business owner based in Vermont explained to me that "people up here generally tend to be more trusting and believe that people will do what they are supposed to do and not do what they are not supposed to do. As a result, a lot of the checks and balances that that might seem like common sense don't get put in place until after someone gets caught taking advantage of the situation." It always comes down to the level of business controls in place... Christopher T. Marquet, CEO, Marquet International, Ltd.

California Woman Charged With Embezzling $180K From Doctor's Office

Stephanie Morgan of Oceanside, California and believed to be in her early 40s, has been charged with embezzling more than $180,000 from the medical offices of Dr. Julia Aspiras, where she had been employed as office manager. Over as much as a 3 year period, beginning in 2008 when she was hired, Morgan allegedly wrote unauthorized checks and used the practice credit card for her own benefit. She may also have stolen cash receipts, according to Dr. Aspiras. Morgan is the wife of US Marine Gunnery Sergeant Mitchell Morgan based at Camp Pendleton. Sgt. Morgan has been charged with receiving stolen goods. Police investigators reportedly found a number of apparent recent purchases at the Morgan home, including four flatscreen TVs, two dirt bikes, a laptop, a Ford Mustang, a Chevrolet Tahoe and new appliances. Stephanie Morgan reportedly has a prior criminal record in Texas.

Read the story here.

Michigan Bank Employee Charged With Embezzling $704K

Dianna Kay DeLawter, 49, of Manchester, Michigan, has been charged with embezzling some $704,000 from the Key Bank branch in Chelsea, where she had been employed. According to authorities, over a period of 10 years, beginning in May 2001, DeLawter systematically siphoned funds from the bank. A bank spokesman described DeLawter has "having problems." Details are scant at this time.

Developing...

Read the story here .

Nebraska Woman Gets Probation After Embezzling $136K

Ariel Rivera, 28, of Lincoln, Nebraska has been sentenced to five years probation for embezzling $136,000 from Christensen Audiology & Hearing Aid Center where she had been employed as office manager and chief financial officer. Rivera is reportedly the daughter of Roy Christensen, the owner of the business. Rivera, who pleaded guilty to the charge of theft by deception, apparently wrote and forged unauthorized checks to herself from company accounts. Rivera was arrested last May. Her scheme spanned a two year period, from March 2008 to March 2010. Rivera has also been sued in civil court by the company to recover the monies she stole, which came to a grand total of totaled $136,797.67, which she has been ordered to repay. Read the story here, here and here.

Pretty light sentence, IMHO ...

The Top 10 Embezzlement Cases In Modern US History

Marquet International conducted an analysis of the largest embezzlement cases in modern US history (since 1900). To do so we converted the amount misappropriated into 2010 dollars, using the Consumer Price Index comparison with the median year the scheme was active. We came up with the following list (perpetrator; actual amount in parenthesis, victim organization; and year scheme was discovered):

• Yasuyoshi Kato; $132 million ($90M); Day-Lee Foods, Inc.; 1997



• Gilbert Beesemyer; $100 million ($7.7M); Guaranty B&L Assoc.; 1930



• Ricardo Carrasco; $88.3 million ($66M); BankBoston; 1998



• John F. Doorly; $70.5 million ($58.2M); Tenens Corp/Ayer estate; 2006



• Ausaf U. Siddiqui; $69 million ($65.6M); Fry’s Electronics; 2008



• L. Ben Lewis; $64 million ($21.3M); Wells Fargo Bank; 1981



• Melissa G. King; $47.6 million ($42.6M); Sandhogs’ Union Local 147; 2009



• William S. Deloach; $49 million ($36.6M); PBS&J Corp.; 2005



• Sujata Sachdeva; $40.9 million ($34.5M); Koss Corp.; 2009



• Minnie Mangum; $35.7 million ($2.9M); Commonwealth B&L Assoc.; 1955

Note that half of these cases have occurred in the past decade. We will be putting these together with their stories as a separate article. There are many dishonorable mentions not included here. My guess is that this list represents the largest employee thefts in ALL of American history, but due to the paucity of information available prior to 1900, we did not find any worthy of inclusion. Please let us know if you have any cases for consideration for this "hall of shame."

Read the whole article here.

Montana Bookkeeper Sentenced For Embezzling $222K

Kellie Mae Henderson, 36, of Sun River, Montana, has been sentenced to 33 months in prison for embezzling some $222,000 from Sound Air, Inc., where she had been employed as a bookkeeper. According to authorities, Henderson embezzled from the company over a 4 1/2 year period, from September 2005 until April 2010. Henderson's scheme involved issuing company checks to pay for her personal expenses. She was also alleged to have altered the company books and records in an effort to conceal the embezzlement. A total of $221,804.91 in fraudulent checks were issued to Henderson's benefit. She was also ordered to pay full restitution. Read the story here, here and here.

Nigerian Man Under Investigation For Allegedly Embezzling $522K From Wisconsin-Based Health Concern

A 52 year old unnamed Nigerian man from Brown Deer, Wisconsin, is under investigation for allegedly embezzling $522,479 from Milwaukee Health Services Inc., where he had been employed as an accounts payable clerk. According to authorities, the suspect wrote at least 79 fraudulent checks to phony vendors whose names were similar to legitimate ones, and ultimately deposited them into his own accounts. The scheme reportedly spanned more than 2 years from 2008 until late September 2010. The suspect has yet to be arrested and charged, but investigators are looking to present a case to the District Attorney's office in the immediate future. Read the story here.

California Woman On Trial For Embezzling $750K

Jennifer Joann Zito, 37, of Chatsworth, California is currently on trial in Ventura County Superior Court for allegedly embezzling more than $750,000 from Simi Valley Cycles Inc., where she had been employed as a bookkeeper. Prosecutors have charged her with 16 felony counts of embezzlement, grand theft, and filing false tax returns. She is alleged to have misappropriated the funds over a period of at least 5 years, from 2001 until 2006. Zito is believed to have spent the stolen funds to support a lavish lifestyle, including the purchase of luxury vehicles, such as Porsche, BMW, a pickup truck, as well as six horses valued at $100,000, a speed boat and a custom horse trailer. 

Read the story here.

Update (4/25/11): Zito was found guilty by a jury on 18 felony counts for embezzling more than $750,000 from Simi Valley Cycles. Specifically, the jury found Zito guilty on six counts of embezzlement, seven counts of grand theft, and five counts of filing false income tax returns. She was found not guilty on identity theft and forgery counts. Zito faces up to 18 years in prison.

Update (6/6/11): Zito has been sentenced to 18 years in state prison for what is now believed to be $850,000 worth in cash and vehicles from Simi Valley Cycles Inc.  Zito was also ordered to pay $1,473,483 in restitution and $186,464 to the California Franchise Tax Board for back taxes on the ill-gotten gains.

FEMA Employee In Maryland Charged With Embezzling $149K From Agency

Sheila Ann Howard, 55, of Capital Heights, Maryland, has been charged with embezzling more than $149,000 from the Federal Emergency Management Agency (FEMA) where she had been employed as a human resources specialist handling special payroll payments. According to prosecutors, Howard processed at least 26 payroll payments in the names of former or current employees that were deposited into accounts she controlled. The scheme which netted a reported total of $149,459.23, spanned a 15 month period beginning in December 2009. Howard had been employed by the agency since 1990. Read the story here, here and here. Read the DOJ announcement here.

Illiinois Man Alleged To Have Embezzled $1.5 Million From Bank

Elvir Sinikovic, 33, of Elk Grove Village, Illinois, has been arrested and charged with embezzling funds from the Chicago Title and Trust Company where he had been employed as an escrow administrator. According to authorities, Sinikovic caused an electronic funds transfer of $50,000 to a construction account that was then converted to he and his wife's own benefit in cash and for the purchase real estate. FBI investigators believe he may have caused more than 100 similar such fraudulent transactions. His wife has not been charged at this time. Sinikovic faces one felony count of embezzlement of bank funds.

Developing...

Read the story here and here.

Read the DOJ announcement here.