We will be in attendance at the annual Association of Certified Fraud Examiner's global fraud conference representing the newly formed Center for Strategic Business Integrity and Marquet International. We will be handing out copies of our recently issued 2012 Marquet Report on Embezzlement, among other things. All you CFEs and CFE's to be who are attending please drop by our booth.
Hope to see you there,
Chris
Friday, June 21, 2013
Thursday, June 6, 2013
2 New Jersey Women Plead Guilty To Conspiring To Embezzle $779K From Law Firm
From The Associated Press on 6/6/13:
Two women who worked at a central New Jersey law firm have been sentenced to prison after admitting they embezzled nearly $800,000 from their employer.
Marla Deptula of Sayreville received a 20-month sentence and Rose Crabbe of Plainfield received 15 months in federal court in Trenton on Thursday.
Both women had pleaded guilty to conspiracy to commit mail fraud. Deptula also pleaded guilty to subscribing to a false tax return.
They admitted writing checks to themselves from the Edison-based law firm's accounts and using the money to pay credit card bills, taxes and child care expenses. The U.S. Attorney's Office alleges hey tried to hide the scheme by altering the law firm's accounting records.
Deptula will be required to pay $705,000 and Crabbe will have to pay $74,000 in restitution.
Two women who worked at a central New Jersey law firm have been sentenced to prison after admitting they embezzled nearly $800,000 from their employer.
Marla Deptula of Sayreville received a 20-month sentence and Rose Crabbe of Plainfield received 15 months in federal court in Trenton on Thursday.
Both women had pleaded guilty to conspiracy to commit mail fraud. Deptula also pleaded guilty to subscribing to a false tax return.
They admitted writing checks to themselves from the Edison-based law firm's accounts and using the money to pay credit card bills, taxes and child care expenses. The U.S. Attorney's Office alleges hey tried to hide the scheme by altering the law firm's accounting records.
Deptula will be required to pay $705,000 and Crabbe will have to pay $74,000 in restitution.
Texas Woman Pleads Guilty To Embezzling $773K; Supports Lavish Lifestyle
From the Associated Press on 6/6/13:
...
Prosecutors in Dallas say 46-year-old Marci Johnson of Kaufman pleaded guilty Wednesday to mail fraud.
Johnson faces up to two years in prison as part of the plea deal and also could be required to repay nearly $773,000 to Spaeth Communications of Dallas. Sentencing is pending.
Prosecutors say Johnson was the chief administrative officer for the business communications company and had access to company checks and credit cards.
Investigators say she used corporate funds for personal dining, shopping and entertainment. Prosecutors say Johnson also made false entries in the company's accounting software to help cover her fraudulent purchases.
...
Prosecutors in Dallas say 46-year-old Marci Johnson of Kaufman pleaded guilty Wednesday to mail fraud.
Johnson faces up to two years in prison as part of the plea deal and also could be required to repay nearly $773,000 to Spaeth Communications of Dallas. Sentencing is pending.
Prosecutors say Johnson was the chief administrative officer for the business communications company and had access to company checks and credit cards.
Investigators say she used corporate funds for personal dining, shopping and entertainment. Prosecutors say Johnson also made false entries in the company's accounting software to help cover her fraudulent purchases.
Wisconsin Man Accused Of Embezzling $117K; Uses Money To Start Escort Business
From Fox 11 News on 6/6/13:
A Sheboygan man is being accused of stealing money from a business, to among other things, start up an escort service.
Kirk Riddle, 46, has been charged with embezzling $117,000 from Kohler Company.
...
A Sheboygan man is being accused of stealing money from a business, to among other things, start up an escort service.
Kirk Riddle, 46, has been charged with embezzling $117,000 from Kohler Company.
...
Michigan Woman Accused Of Embezzling As Much As $100K From Nursing Home
From The Daily Press on 6/6/13:
MANISTIQUE - A former nursing home director, accused of embezzling funds from an assisted living facility in Manistique, was bound over from Schoolcraft County District Court to circuit court on Wednesday.
Jana Marie Chaperon, 39, of Rapid River, allegedly converted funds for her own use while director at the Woodland Meadows Assisted Living Facility.
She was arrested last month and charged with one count of embezzlement $50,000 to $100,000, a 15-year felony, and one count of using a computer to commit a crime, a 10-year felony.
...
According to an investigation by the Michigan State Police Detachment in Manistique, Chaperon allegedly embezzled monies from the nursing home for a long period of time until she resigned in the summer of 2012.
...
MANISTIQUE - A former nursing home director, accused of embezzling funds from an assisted living facility in Manistique, was bound over from Schoolcraft County District Court to circuit court on Wednesday.
Jana Marie Chaperon, 39, of Rapid River, allegedly converted funds for her own use while director at the Woodland Meadows Assisted Living Facility.
She was arrested last month and charged with one count of embezzlement $50,000 to $100,000, a 15-year felony, and one count of using a computer to commit a crime, a 10-year felony.
...
According to an investigation by the Michigan State Police Detachment in Manistique, Chaperon allegedly embezzled monies from the nursing home for a long period of time until she resigned in the summer of 2012.
...
Former Bookkeeper At Upstate New York Charter School Sentenced For Embezzling More Than $200K
From the Troy Record on 6/5/13:
A bookkeeper at an Albany charter school will spend at least five years behind bars for embezzlement after his sentencing Tuesday.
Ronald Racela, 49, received a sentence of 5 to 10 years behind bars for stealing more than $200,000 from the Brighter Choice Charter School where he worked as chief financial officer.
Racela’s sentencing Tuesday came after he pleaded guilty in March to one count of grand larceny.
...
Between September 2011 and December 2012, Wise’s investigation revealed that Racela made a series of improper payroll entries to himself for a total of $208,837.45.
The inquiry also revealed that Racela had been on felony probation for a separate financial crime at the time he committed the fraud. Officials at Brighter Choice were unaware of his criminal background when he was hired as CFO.
Racela must also pay $174,400.08 in restitution.
...
A bookkeeper at an Albany charter school will spend at least five years behind bars for embezzlement after his sentencing Tuesday.
Ronald Racela, 49, received a sentence of 5 to 10 years behind bars for stealing more than $200,000 from the Brighter Choice Charter School where he worked as chief financial officer.
Racela’s sentencing Tuesday came after he pleaded guilty in March to one count of grand larceny.
...
Between September 2011 and December 2012, Wise’s investigation revealed that Racela made a series of improper payroll entries to himself for a total of $208,837.45.
The inquiry also revealed that Racela had been on felony probation for a separate financial crime at the time he committed the fraud. Officials at Brighter Choice were unaware of his criminal background when he was hired as CFO.
Racela must also pay $174,400.08 in restitution.
...
Wednesday, June 5, 2013
Former CFO Of New York Non-Profit Pleads Guilty In $161K Embezzlement; Has A Criminal History
From The Record on 6/5/13:
...
Dennis Bassat, the former chief financial officer of 820 River St. Inc., stood in Rensselaer County Court beside his attorney and admitted to stealing $161, 384 from the non-profit over a five-year period beginning back in 2006.
As CFO, Bassat funneled money into a bank account in his name by cashing paychecks written to a fictitious employee, along with reimbursement checks for fraudulent expenses.
...
A one-time client of the agency with an extensive criminal history, Bassat remains free on bail until June 10, when he must surrender at the county jail.
...
...
Dennis Bassat, the former chief financial officer of 820 River St. Inc., stood in Rensselaer County Court beside his attorney and admitted to stealing $161, 384 from the non-profit over a five-year period beginning back in 2006.
As CFO, Bassat funneled money into a bank account in his name by cashing paychecks written to a fictitious employee, along with reimbursement checks for fraudulent expenses.
...
A one-time client of the agency with an extensive criminal history, Bassat remains free on bail until June 10, when he must surrender at the county jail.
...
The Madoff Of Munis - Forbes
From Forbes on 6/5/13:
By Francine McKenna, Forbes contributor
As her renown in the elite world of quarter horse breeding grew, Rita Crundwell kept her unglamorous day job as the $80,000-a-year comptroller of Dixon, Ill., a working-class city of nearly 16,000, most famous as the boyhood home of Ronald Reagan. Year after year, she delivered the bad budget numbers to councilmen and department heads–numbers that meant streets couldn’t be repaved, ambulance equipment couldn’t be purchased, and replacement radios for cops and firefighters would have to wait. Eventually the city workforce was cut.
...
Read the whole article here.
By Francine McKenna, Forbes contributor
As her renown in the elite world of quarter horse breeding grew, Rita Crundwell kept her unglamorous day job as the $80,000-a-year comptroller of Dixon, Ill., a working-class city of nearly 16,000, most famous as the boyhood home of Ronald Reagan. Year after year, she delivered the bad budget numbers to councilmen and department heads–numbers that meant streets couldn’t be repaved, ambulance equipment couldn’t be purchased, and replacement radios for cops and firefighters would have to wait. Eventually the city workforce was cut.
...
Read the whole article here.
Tuesday, June 4, 2013
California Couple In Court On Allegations They Embezzled $1.5 Million In Public Funds From Welfare Agency
From Sierra Wave Media on 6/3/13:
Dawndee and Kenneth Rossy of Bishop still face 44 felonies including embezzlement of $1.5 million in public funds from the Inyo Welfare Department.....
... Officers arrested the Rossys in April. County officials said Dawndee Rossy was terminated in February from her job as a supervisor in the Health and Human Services Department after reports were made to law enforcement that she was suspected of embezzling public funds.
The DA filed charges that include embezzlement of public funds, conspiracy to commit grand theft, conspiracy to commit identity theft and possession of methamphetamine. The criminal complaint filed against the Rossys reveals an alleged scheme to get welfare benefits in the form of cash through use of Electronic Benefit Transfer or EBT cards.
The complaint also reveals the allegation that the couple used the identities of 35 individuals to obtain the welfare benefits for themselves. Although County officials have said safeguards were in place to avoid embezzlement, clearly they did not protect the welfare funds. Officials said they were making changes to improve safeguards.
Dawndee and Kenneth Rossy of Bishop still face 44 felonies including embezzlement of $1.5 million in public funds from the Inyo Welfare Department.....
... Officers arrested the Rossys in April. County officials said Dawndee Rossy was terminated in February from her job as a supervisor in the Health and Human Services Department after reports were made to law enforcement that she was suspected of embezzling public funds.
The DA filed charges that include embezzlement of public funds, conspiracy to commit grand theft, conspiracy to commit identity theft and possession of methamphetamine. The criminal complaint filed against the Rossys reveals an alleged scheme to get welfare benefits in the form of cash through use of Electronic Benefit Transfer or EBT cards.
The complaint also reveals the allegation that the couple used the identities of 35 individuals to obtain the welfare benefits for themselves. Although County officials have said safeguards were in place to avoid embezzlement, clearly they did not protect the welfare funds. Officials said they were making changes to improve safeguards.
Wisconsin Man Suspected In $120K Embezzlement Scheme: Has Prior Criminal Arrest History
From the Menomonee Falls Patch on 6/3/13:
...
Menomonee Falls police are investigating an extensive embezzlement case involving a former employee of Novum Structures LLC in Falls.
Police obtained a search warrant to obtain copies of information and activity from a bank account held by Gerard Del Giudice. Del Giudice is suspected of embezzling at least $120,615 from Novum Structures, which is an architectural and construction company...
According to an affidavit filed with the Waukesha County Circuit Court:
Del Giudice allegedly set up shell companies while employed at Novum, and was charging Novum subcontractors for insurance and consultant fees. Between January 2012 and March 2013, Del Giudice bilked over $120,000 from the company through several transactions with through false companies.
This isn't the first tango for Del Giudice. He has also been arrested in Florida, Illinois, and Michigan for fraud, theft by deception, and embezzlement.
Del Giudice, who created a false identity by the name Jerry Guidice, fabricated the companies USA Assurety Corporation and Subsure Construction Services. He then billed Novum for services that were never provided. A Novum employee provided police a checking statement from Giudice's office, which shows the address of the US Assurety Corporation account matching Giudice's home address.
Police believe Giudice has been transferring funds from his shell companies into his personal account, and filed for a warrant to obtain proof of that. Former charges have not been filed at this point.
Update (1/6/2015) from WTAQ:
A former business executive in suburban Milwaukee is due in court next Monday, for allegedly stealing over $168,000 from his employer.
55-year-old Jerry Guidice, who now lives in Windermere Florida, is charged with six felony counts in Waukesha County -- 3 charges of embezzlement, 2 counts of false writings, and one charge of identity theft.
According to prosecutors, Guidice was hired at the start of 2012 to administer contracts for Novum Structures of Menomonee Falls. Investigators said he later created a fake construction company to which he made numerous payments from Novum Structures -- and later put the money in his own accounts.
Authorities said Guidice used the money to buy an airplane and a horse, among other things.
Officials said he was fired about 15 months after he was hired, and the firm then notified Menomonee Falls Police. Charges were not filed until Monday.
...
Menomonee Falls police are investigating an extensive embezzlement case involving a former employee of Novum Structures LLC in Falls.
Police obtained a search warrant to obtain copies of information and activity from a bank account held by Gerard Del Giudice. Del Giudice is suspected of embezzling at least $120,615 from Novum Structures, which is an architectural and construction company...
According to an affidavit filed with the Waukesha County Circuit Court:
Del Giudice allegedly set up shell companies while employed at Novum, and was charging Novum subcontractors for insurance and consultant fees. Between January 2012 and March 2013, Del Giudice bilked over $120,000 from the company through several transactions with through false companies.
This isn't the first tango for Del Giudice. He has also been arrested in Florida, Illinois, and Michigan for fraud, theft by deception, and embezzlement.
Del Giudice, who created a false identity by the name Jerry Guidice, fabricated the companies USA Assurety Corporation and Subsure Construction Services. He then billed Novum for services that were never provided. A Novum employee provided police a checking statement from Giudice's office, which shows the address of the US Assurety Corporation account matching Giudice's home address.
Police believe Giudice has been transferring funds from his shell companies into his personal account, and filed for a warrant to obtain proof of that. Former charges have not been filed at this point.
Update (1/6/2015) from WTAQ:
A former business executive in suburban Milwaukee is due in court next Monday, for allegedly stealing over $168,000 from his employer.
55-year-old Jerry Guidice, who now lives in Windermere Florida, is charged with six felony counts in Waukesha County -- 3 charges of embezzlement, 2 counts of false writings, and one charge of identity theft.
According to prosecutors, Guidice was hired at the start of 2012 to administer contracts for Novum Structures of Menomonee Falls. Investigators said he later created a fake construction company to which he made numerous payments from Novum Structures -- and later put the money in his own accounts.
Authorities said Guidice used the money to buy an airplane and a horse, among other things.
Officials said he was fired about 15 months after he was hired, and the firm then notified Menomonee Falls Police. Charges were not filed until Monday.
Former Head Of Non-Profit In Michigan Along With Bookkeeper Plead Guilty To Conspiring To Embezzle More Than $2.6 Million
From Crains Detroit Business on 6/3/13:
The former CEO and bookkeeper of Compensation Advisory Organization of Michigan in Livonia have pled guilty to embezzling over $2.6 million from the nonprofit.
Former CEO Jerry Stage, 67, pled guilty in Wayne County Circuit Court to one count each of embezzlement over $100,000 and conspiracy to embezzle over $100,000, both felonies punishable by up to 20 years in prison.
Stage pled guilty to embezzling approximately $2.6 million from the company during an 11-year period, conspiring with George Bauer, a former bookkeeper for the organization, to cover up his tracks, Michigan Attorney General Bill Schuette said in a news release.
Bauer, 55, pled guilty to one count of conspiracy to embezzle $50,000 to $100,000, a 15-year felony.
Both defendants together must repay $2.6 million per a joint restitution order.
...Stage wrote numerous checks to himself for $995 over a 14-year period, totaling approximately $1 million, and paid Bauer to keep it quiet, according to the case.
He also inflated his own pay raises and bonuses, bringing himself an additional $200,000, used a company credit card to pay for personal expenses and submitted false or inflated expense reports for events, including: week-long family vacations at Walt Disney World, tuition, wedding expenses, pet care and family dinners, the attorney general said.
...
The former CEO and bookkeeper of Compensation Advisory Organization of Michigan in Livonia have pled guilty to embezzling over $2.6 million from the nonprofit.
Former CEO Jerry Stage, 67, pled guilty in Wayne County Circuit Court to one count each of embezzlement over $100,000 and conspiracy to embezzle over $100,000, both felonies punishable by up to 20 years in prison.
Stage pled guilty to embezzling approximately $2.6 million from the company during an 11-year period, conspiring with George Bauer, a former bookkeeper for the organization, to cover up his tracks, Michigan Attorney General Bill Schuette said in a news release.
Bauer, 55, pled guilty to one count of conspiracy to embezzle $50,000 to $100,000, a 15-year felony.
Both defendants together must repay $2.6 million per a joint restitution order.
...Stage wrote numerous checks to himself for $995 over a 14-year period, totaling approximately $1 million, and paid Bauer to keep it quiet, according to the case.
He also inflated his own pay raises and bonuses, bringing himself an additional $200,000, used a company credit card to pay for personal expenses and submitted false or inflated expense reports for events, including: week-long family vacations at Walt Disney World, tuition, wedding expenses, pet care and family dinners, the attorney general said.
...
Massachusetts Woman Accused Of Embezzling $300K From Local Newspaper Company
From 95.9 WATD on 6/2/13:
A former Patriot Ledger worker has pleaded not guilty to bilking close to $300,000 from her employer.
Karen Sullivan of Braintree was fired from her job as office manager at the Quincy-based newspaper in March amid allegations she stole cash and checks from its parent company, Gatehouse Media.
Authorities say Sullivan’s scheme began when she was hired in 2006.
...
A former Patriot Ledger worker has pleaded not guilty to bilking close to $300,000 from her employer.
Karen Sullivan of Braintree was fired from her job as office manager at the Quincy-based newspaper in March amid allegations she stole cash and checks from its parent company, Gatehouse Media.
Authorities say Sullivan’s scheme began when she was hired in 2006.
...
California Woman Indicted On Charges She Allegedly Embezzled $800K From Monterey Aquarium
From NBC Bay Area on 6/2/13:
...
The indictment alleged that McMahon defrauded the institute of the $800,000 over seven years by altering payroll and 401(k) investment records to conceal the transfer of funds to her personal accounts, federal officials said.
McMahon had been working for the institute as a payroll specialist responsible for the payroll, 401(k) distributions and loans for institute employees.
...
A federal grand jury in San Jose has indicted a former payroll employee of an aquatics research facility at Moss Landing, Calif. in the embezzlement of about $800,000 from 2005 to 2012, according to the U.S. Attorney's office.
Lisa McMahon, of Mountain View, is set to appear in federal court in San Jose on Thursday to face charges of wire fraud and theft from the Monterey Bay Aquarium Research Institute following her indictment Wednesday, the office reported.
...
The indictment alleged that McMahon defrauded the institute of the $800,000 over seven years by altering payroll and 401(k) investment records to conceal the transfer of funds to her personal accounts, federal officials said.
McMahon had been working for the institute as a payroll specialist responsible for the payroll, 401(k) distributions and loans for institute employees.
...
Former Alabama Narcotics Chief Charged With Embezzling $125K
From the Times Daily on 5/31/13:
The former commander of the West Alabama Narcotics Task Force has been charged with stealing about $125,000 in drug proceeds that were seized by the agency.
U.S. Attorney's officials say 55-year-old Jeffrey Lynn Snyder, of Carrollton, has agreed to plead guilty to stealing from the task force between June 2010 and June 2012, when he left the organization.
...
The former commander of the West Alabama Narcotics Task Force has been charged with stealing about $125,000 in drug proceeds that were seized by the agency.
U.S. Attorney's officials say 55-year-old Jeffrey Lynn Snyder, of Carrollton, has agreed to plead guilty to stealing from the task force between June 2010 and June 2012, when he left the organization.
...
Montana Woman Charged With Embezzling $120K
From the Billings Gazette on 5/31/13:
A Fort Benton woman was charged with 16 felony counts of theft, common scheme, for allegedly embezzling nearly $120,000 from her employer, Northwest Physician Billing, from October 2011 to April 2013.
If convicted, Rachel Joyce Taylor faces 160 years in prison. The charges were filed in Chouteau County District Court on Thursday.
The investigation began May 1, when Fort Benton Police Chief John Turner met Jody Roth of Northwest Physicians Billing to discuss a possible embezzlement by an employee. Roth presented Turner with records showing multiple transactions where funds were electronically transferred from accounts into a bank account known to be Taylor’s, court documents said.
...
In an interview with Turner on May 2, Taylor described how she would sign into the bank account using Roth’s user ID and password. She said she would give herself money, money she needed to pay bills, documents said.
An investigative subpoena was obtained by Turner for bank accounts, and information showed unauthorized illegal transactions, documents said.
...
A Fort Benton woman was charged with 16 felony counts of theft, common scheme, for allegedly embezzling nearly $120,000 from her employer, Northwest Physician Billing, from October 2011 to April 2013.
If convicted, Rachel Joyce Taylor faces 160 years in prison. The charges were filed in Chouteau County District Court on Thursday.
The investigation began May 1, when Fort Benton Police Chief John Turner met Jody Roth of Northwest Physicians Billing to discuss a possible embezzlement by an employee. Roth presented Turner with records showing multiple transactions where funds were electronically transferred from accounts into a bank account known to be Taylor’s, court documents said.
...
In an interview with Turner on May 2, Taylor described how she would sign into the bank account using Roth’s user ID and password. She said she would give herself money, money she needed to pay bills, documents said.
An investigative subpoena was obtained by Turner for bank accounts, and information showed unauthorized illegal transactions, documents said.
...
Monday, June 3, 2013
California Man Pleads Guilty To Embezzling $950K From Community Association Management Firm
From The Modesto Bee on 5/30/13:
As part of his plea agreement, Chris Barna, 35, agreed to pay full restitution to M&C Association Management Services Inc. and to forfeit his house.
Federal prosecutors said Barna used some of the fraud profits to pay down his home's mortgage. Barna worked as the controller for M&C, a company that provides management and developer services to numerous community associations in Northern California. The fraud occurred from April 2007 through May 2011. Prosecutors said Barna misappropriated about 300 checks payable to the company from third parties, 40 checks payable to third parties from the company and two checks payable to a company of M&C's parent firm. Barna forged the endorsements on the checks or wrote "deposit only," prosecutors said, and he deposited the checks into accounts at Wells Fargo Bank. Barna then manipulated M&C financial records to conceal the fraud. He is scheduled to be sentenced Aug. 22 and faces a maximum sentence of 30 years in federal prison and a $2 million fine.
Manteca man pleads guilty in bank fraud case
A Manteca man Thursday pleaded guilty to bank fraud for his role in embezzling more than $950,000 from a Stockton company where he worked, according to the U.S. attorney's office in Sacramento.
As part of his plea agreement, Chris Barna, 35, agreed to pay full restitution to M&C Association Management Services Inc. and to forfeit his house.
Federal prosecutors said Barna used some of the fraud profits to pay down his home's mortgage. Barna worked as the controller for M&C, a company that provides management and developer services to numerous community associations in Northern California. The fraud occurred from April 2007 through May 2011. Prosecutors said Barna misappropriated about 300 checks payable to the company from third parties, 40 checks payable to third parties from the company and two checks payable to a company of M&C's parent firm. Barna forged the endorsements on the checks or wrote "deposit only," prosecutors said, and he deposited the checks into accounts at Wells Fargo Bank. Barna then manipulated M&C financial records to conceal the fraud. He is scheduled to be sentenced Aug. 22 and faces a maximum sentence of 30 years in federal prison and a $2 million fine.
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