Larceny Defined

Leeanna Rossi, a professor of criminal justice at the Western New Mexico University in Deming, NM, has now published a definition of larceny in the local paper, The Deming Headlight. We have taken the liberty of quoting her in full:

"Last week, I defined embezzlement as a crime of theft. Another crime of theft is larceny, which is closely related. Larceny can be defined as: the trespassory taking and carrying away of personal property of another with the intent to steal.

Larceny is a crime against possession. For there to be a trespassory taking, it requires the wrongful taking of property from another's possession, so that if the defendant is already in rightful possession of the property at the time she takes it for her own use, she can not be guilty of larceny. She would instead be guilty of embezzlement. The difference is she can not be in lawful possession of the property at the time of the taking.

For example, Delia contracts to sell her house to Mike. The deal also includes items such as the furniture. Delia was allowed to remain in the house until closing. Mike closes and as he is moving into the house, he sees that some of the furniture is gone. Delia admits to taking the missing furniture and later selling them. Can Delia be convicted of larceny? No, because Delia removed and sold the furniture while she was in lawful possession of those items, prior to the transfer of title. Delia may be charged with fraudulent conversion but not larceny.

The defendant, to commit larceny, must not only commit a trespassory taking but must also carry the property away. The technical term for this is "asportation." Even moving the property a slight distance is sufficient. In many courts today, merely bringing the property under your dominion and control, without physical movement, may also be sufficient.

For example, David enters Tom's car, turns on the lights and starts the engine. At that point he is arrested. If actual movement is required for asportation, then David would not be charged with larceny. However, if the requirement for asportation is only having the car under his dominion and control, David could be charged with larceny.

As with embezzlement, personal property of another may include property which is both tangible (such as an auto) and intangible items (such as stocks and bonds). One of the glaring differences between larceny and embezzlement is that a person can not commit larceny of real property.

Next, property taken must belong to another. There can be no larceny if the property is co-owned by the defendant and another person. However, co-owners may be charged with embezzlement or false pretenses if other aspects of these crimes are met.

Finally, the intent to steal requires that the owner be permanently deprived of the property. Intent to take property temporarily is not sufficient.

For example, Sue, a 17 year old girl, enters the house of Bill and takes his bicycle. She later testifies she took the bike to get even with Bill for something he had done and she intended to bring it back but got caught before she could do so. She was not charged with larceny because she didn't have the intent to deprive the owner of his property permanently, only temporarily. However, for temporary taking, the defendant must also have the ability to return the property to its owner. This applies when property is taken and later abandoned. Even though there is no intent to permanently keep the property which is abandoned, the defendant's ability to return it to the owner is unlikely.

Almost all states divide larceny into at least two degrees: petit and grand. Grand larceny usually qualifies where the market value is more than a specific amount. When a defendant steals several items, which together qualifies for grand larceny, but no item meets it separately, it may be decided on the circumstances behind the crime. Also, property taken at the same time from several victims will usually be charged with grand larceny because all property taken is considered as part of a single scheme."

Professor Rossi previously defined Embezzlement which we highlighted in our post here.

Read Rossi's article in The Deming Headlight here.

Update On Massive Ohio Corporate Fraud Case: National Century's Paulsen Sentenced To 30 Years

Lance K. Poulsen, 65, the former founder and CEO of Dublin, Ohio-based National Century Financial Enterprises, was sentenced Friday to 30 years in prison for defrauding investors to the tune of $1.9 billion. He was also ordered to pay $2.38 billion in restitution. According to prosecutors, Poulsen fabricated data, transferred funds between accounts to hide shortfalls and misled the investors concerning the financial health of the company. One of Poulsen's accomplices, Rebecca S. Parrett, 60, was sentenced to 25 years in prison for her part in the scheme. She remains a fugitive. A third defendant, Karl A. Demmler, 57, one of the founders of National Century, was sentenced to 7 years in prison for his involvement in the fraud. Poulsen was originally found guilty last October on multiple counts of securities fraud, wire fraud and money laundering. National Century collapsed in 2002.

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

Read the story here and here.

Massachusetts Man Sentenced For Embezzling $130K From Non-Profit

Andrew R. Ma, 33, of Weymouth, Massachusetts, was sentenced to 2 years in prison for embezzling some $130,000 from the Dimock Community Health Center Boston where he had been employed as a "senior accountant". Ma pleaded guilty last October to the embezzlement charges. According to prosecutors, Ma used a debit card from the non-profit health care institution to withdraw cash and to make purchases of jewelry and electronics for his own benefit. He also stole cash from the company's cashier's office. Some of the cash withdrawals were made at area casinos. Ma also altered the non-profit's books and records in an attempt to cover up his thefts. According to reports, Ma has an "extensive" criminal record.

Read the story here and here.

Read the DOJ announcement here.

Pennsylvania Man Sentenced In $3.5 Million Embezzlement Case

Brian J. Rowland, 44, of Gilbertsville, Pennsylvania, was sentenced Thursday to 63 months in prison for embezzling more than $3.5 million from the Gillespie Group, an advertising company where he had been employed as a bookkeeper. He had previously pleaded guilty to wire fraud and tax evasion. The thefts occurred over at least a 12 year period from 1994 to 2006, according to prosecutors. Rowland issued company checks to a fictitious business he created called "Business Management Concepts." He would then deposit the checks into a bank account he created under the name of “Brian Rowland T/A Business Management Concepts”. Rowland set up the entity Business Management Concepts as a fictitious business name in 1992. He was also ordered to pay restitution in the amount of $3,524,781.85. Rowland was also charged with tax evasion.

Read the story here and here.

Oregon Woman Arrested In $200K Embezzlement Scheme

Michele Louise Luck, 51, of Bend, Oregon, was arrested and charged with embezzling $214,000 from Central Oregon Pediatric Associates in Bend, Oregon office where she had been employed as office manager in charge of payroll for 17 years. Details are sketchy at this time.

Developing...

Read the story here.

Internet Fraud On the Rise, FBI Report Says

The Federal Bureau of Investigation has released its annual report on Internet fraud revealing that some $265 million was lost in 2008 in the US. More than 275,000 complaints were logged averaging almost $1,000 in losses each. The losses represent an increase of nearly 11 percent over 2007. Complaints increased dramatically by 33 percent over the prior year.

Read the FBI announcement here.

Read the entire report here.

Vermont Man Pleads Guilty To Embezzling Nearly $100K

Karl Austin, 34, of Pownal, Vermont, has pleaded guilty to two counts of embezzlement, admitting to stealing some $95,000 from NSK Steering Systems of Bennington, Vermont where he had been employed. Austin, who apparently had responsibilities at NSK that included finance, initially took from the petty cash and them moved onto writing himself checks to supplement his regular paycheck.

Read the story here.

Former Wisconsin Municipal Treasurer Convicted Of Embezzlement

Kim B. Simmelink, 52, of Sheboygan Falls, Wisconsin and the former treasurer for the Village of Oostburg, Wisconsin, was convicted of embezzling at least $56,000 from the municipality. According to prosecutors and audit showed Simmelink had embezzled more than $140,000. had been charged with nine felonies for allegedly forging signatures and falsifying records to cover the thefts. He pleaded no contest to two counts each of felony forgery and felony theft but will serve no time as part of the plea agreement. Simmelink had been employed as the Oostburg's bookkeeper since 1987, according to reports. The thefts in question ocurred over a six month period between late 2005 and early 2006 wherein Simmelink simply wrote himself checks.

Read the story here.

Nevada Exec Charged With Fraud & Embezzlement

Nikki Pomeroy, an officer of Henderson, Nevada-based Southwest Exchange, purported to be a tax-free real estate exchange business, has been charged with fraud and embezzlement. Pomeroy, the daughter of the now defunct company's chairman Donald McGhan, pictured here, is charged with 11 counts of embezzlement and 11 counts of "unlawful intermediary in a tax-free exchange," and alleged to have bilked investors out of $95 million. Donald and Shirley McGhan have also been embroiled in the case which is described as a ponzi scheme.

Read the story here, here and here.

Update: Former Washington State Municipal Worker Is Sentenced To 3 Years For $1.3 Million Embezzlement

Terry L. Davis, 57, of Seattle, Washington and a former Assistant Finance Director for the City of Arlington, Washington, was sentenced Friday to 37 months in prison for embezzling some $1.3 million from the city. Davis, who worked for the city for 32 years and had been charged with mail fraud and filing a false tax return, wrote herself over 100 checks, according to prosecutors. She claimed to have a gambling problem.

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

What's Behind Rise In Worker Theft?

The Bend Oregon, Bulletin, published an article today entitled "What's Behind Rise In Worker Theft?" The article suggests that prosecutors have noticed a rise in embezzlement cases, but say that the reasons vary. According to the article, in the past 18 months some 15 people in Deschutes County, Oregon have been charged with various forms of embezzlement amounting to more than $500,000 in thefts from their respective employers. At least one perpetrator allegedy had a gambling problem. Another stole to pay off debts. Some stole to maintin or better their lifestyles. Others still feel entitled to the money and are disgruntled with their employers for some reason. Others still supposedly have mental health issues.

Read the whole article here.

We note that one of the examples included in the article is the case of Tiffany Lee Savastano. We noted her story back in November where she was sentenced to 6 years in prison for embezzling more than $200,000 from the Cooper Mountain Winery. However, the article cites Savastano as having embezzled $113,831 from 97 Truck and Trailer. We have not been able to independently verify that this, but perhaps it is a case of another serial embezzler.

Washington State Mortgage Fraud Cabal Indicted

A Seattle, Washington grand jury returned a 40-count indictment last week against 7 individuals in the Seattle area charging them with participating in a $46 million mortgage fraud scheme. Those indicted include Vladislav Baydovskiy, 31 and Viktor Kobzar, 32, principlas of Kobay Financial Corp, Camie Byron, 32, an employee of Kobay, Alla Sobol, 28, principal of Nationwide Home Lending, David Sobol, 40, and Donata Baydovskiy, 28, principals of Emerald City Escrow ; and Sandra Thorpe, 55, a bookkeeper who allegedly prepared false letters verifying employment for buyers. They all reside in the Seattle, Washington area. The indictment, which includes charges of conspiracy, bank fraud, mail fraud and wire fraud, alleges the defendants used "straw buyers" or other unqualified buyers with "vastly overstated incomes" to artificially inflate home values and acquire more than $46 million in mortgages from ING Bank, Washington Mutual and other banks. The indictment also alleges they kept $9 million for themselves. They were all arrested last Thursday. ING had previously brought a federal racketeering suit against Nationwide and Emerald City. Prosecutors are calling this the largest mortgage fraud case in state history. Some of the money was used to perpetuate lavish lifestyles of some of the defendants.

Read the story here, here and here.

2 Union Officials in Maryland Indicted For Embezzlement

Paul S. Peters, II, 31, of Dundalk, Maryland and Brian Armentrout, 32, of Baltimore, Maryland, president and secretary, respectively of the Waterfront Guard Association Local 1852, I.W.A., were indicted for embezzling more than $300,000 from the union. According to the complaint, between January 2002 and September 2005, "Peters and Armentrout embezzled funds from the union’s pension and welfare plans, as well as from the union operating account, and used the union money for personal expenses and purchases." Peters reportedly transferred fund from the pension and welfare plans to the operating account and Armentrout allegedly make cash withdrawals which were then deposited into their own personal accounts. Peters is facing seven counts of embezzlement from a labor union, six counts of embezzlement from an employee benefit plan, and conspiracy. Armentrout is facing four counts of embezzlement from a labor union and conspiracy.

Read the story here and here.

Read the DOJ announcement here.

New York City Art Dealer Charged In $88 Million Fraud

Lawrence B. Salander, 59, of Millbrook, New York, and the proprietor of New York City-based Salander-O'Reilly Galleries, LLC, was arrested and charged with fraud for allegedly selling artwork and without permission or selling the same artwork more than once, and keeping the cash. Salander's high-end art dealership filed for bankruptcy in 2007 after numerous customers, including high profile individuals including tennis star John McEnroe, publisher Arthur Carter, and actor Robert Di Niro, sought to recover either their art or their funds. Salander-O'Reilly Galleries was shuttered by authorities in October 2007. Meanwhile, Salander, his wife, Jill and their seven children lived in a lavish 9,000 square foot townhouse in Manhattan and an estate up in Duchess County, New York. Prosecutors allege Salander bilked 26 victims between July 1994 and November 2007 out of some $88 million with his scheme. He was charged today with grand larceny, forgery and securities fraud.

Read the story here, here and here.

We note that since 2005, quite a few lawsuits were filed against Salander and his gallery to recover artwork and monies owed for artwork allegedly sold. This guy lived a lavish lifestyle while screwing over all his clients. I say good riddance. What goes around comes around.

Former North Carolina Church Finance Administrator Pleads Guilty To Embezzling $946K

Susan Manning Barney, 56, and a former finance administrator for the New Bern, North Carolina-based Garber United Methodist Church, pleaded guilty to 9 felony counts admitting that she embezzled some $946,000 from the church over a 7 year period. The judge sentenced her to 6 years in prison with 5 years probation, plus restitution. According to prosecutors, Barney used a church credit card to make fraudulent purchases and also wrote checks to herself, forging the church treasurer's signature. At her hearing, Barney claimed to have stolen the money to pay for her son's heroin addiction rehabilitation. Investigators say she used the money, in part at least, to buy clothes, a BMW, a Harley Davidson motor cycle and on numerous trips to Costa Rica. Her husband, Her husband Rick Barney, is a former Craven County Sheriff's Office investigator who has resigned from his job since the case came to light. He has reportedly emptied his 401(k) account to help pay the restitution due. Three separate polygraph tests supposedly convinced investigators that Rick Barney was not aware of the thefts. Susan Barney had been employed by the church for 13 years before the misappropriation came to light. The thefts occurred between September 2001 and January 2008.

Read the story here, here and here.

I am sorry folks, if your spouse steals nearly $1 million over the course of seven years, bringing home roughly $135,000 a year on average, you are going to be aware of the change in lifestyle and extra cash. She looks a bit arrogant in this mug shot, doesn't she?

North Carolina Bank Employee Charged With $111K Embezzlement

Donna Lewis Cayton, 47, of Beaufort, North Carolina, was recently charged with embezzling $111,075.99 from Branch Banking & Trust branch in Beaufort, where she had been employed. Cayton's alleged theft occurred between December 2003 and August 2008, according to reports. She is currently out on a $10,000 bond. According to investigators, Cayton targeted the accounts of elderly people and would withdraw relatively small increments of $500 or so. If and when customers identified the discrepancy, she was often the one to correct it by taking from another account. We note that her husband, Christan Bruce Cayton passed away on September 22, 2008.

Read the story here and here.