FraudTalk Celebrates One Year

White Collar Fraud Talk today celebrates its one year anniversary. Nearly 1,000 stories have been posted, along with numerous reader comments. We appreciate all of our readers, followers and posters. Comments and story leads are always welcome.

California Bookkeeper & Husband Charged In $1.3 Million Embezzlement Scheme

Desiree Hererra, 36, and her husband, Ruben Hererra, 37, have been charged with 14 counts of grand theft, money laundering and filing a false income tax return in connection with the alleged embezzlement of some $1.3 million from County Building Materials, dba Payless Hardware and Rockery where Desiree had been employed as an accounts receivable clerk. According to the criminal complaint, Desiree embezzled the funds between 2002 and 2009 and then she and her husband, Ruben, laundered the funds through their own bank accounts.

Read the story here and here.

Idaho Woman Accused Of Embezzling $450K From Medical Practice

Yolanda Williams, 36, of Rathdrum, Idaho, has been arrested and accused of embezzling as much as $451,000 from the Post Falls Family Medicine Practice where she had been employed as office manager. Specifically, Williams has been charged on multiple counts of grand theft and forgery. Over a six year period, beginning in July 2003, Williams allegedly made fraudulent electronic transfers and forged checks which she deposited into her own accounts. Prosecutors also allege that Williams then altered the books and records in an attempt to conceal her thefts.

Read the story here.

Update: Iowa Political Acitivits Pleads Not Guilty In $5.9 Million Embezzlement Case

Phyllis Stevens, 58, of Des Moines, Iowa, who is accused of embezzling more than $5.9 million from Aviva USA, has pleaded not guilty to the charges. Stevens faces 18 counts of wire fraud, money laundering, embezzlement, computer fraud and aggravated identity theft which were handed down in an indictment last week. Stevens, pictured left, had been a 35 year employee of Aviva and its predecessor companies and was a well known political activist for same sex marriage and gay rights. She and her partner, Marla Stevens, pictured right, gave tens of thousands to Democrat candidates, PACs and causes, including Barack Obama. Some of these have quickly moved to return the funds. Stevens' embezzlement scheme lasted at least 4 years and involved more than 200 fraudulent transactions.

Read FraudTalk's original post on this story here.

Read the story here and here.

Wyoming Woman, Convicted Of Embezzling "Hundreds Of Thousands," Still At Large

Julie A. (Jacobsen) Deliramich, 57, of Gillette, Wyoming, who was found guilty on 10 felony counts of forgery and embezzlement last Friday, is still at large. As a bookkeeper with the Fox Park Homeowners Association from 1998 to 2003, Deliramich reportedly embezzled "hundreds of thousands" of dollars through forged signatures and a company bank account. She was also sentenced to 18 months in federal prison on tax evasion charges in 2006. Deliramich skipped her verdict reading and is currently being sought for sentencing. She faces up to 10 years in prison on each of the 10 counts.

Read the story here and here.

Update (9/22/10) Deliramich was arrested last night in Washington State nearly a year after her conviction on 10 felony counts related to her embezzlement of "hundreds of thousands" of dollars from the Fox Park Homeowners Association in Gillette, Wyoming. Prosecutors put the amount stolen at about $398,000. Apparently this is not her first felony conviction - Deliramich had previously pleaded guilty to tax evasion and spent 14 months in federal prison.

Oklahoma Couple Plead Guilty To Embezzling $120K

Lori and Michael Edmonds of Hollis, Oklahoma, pleaded guilty to embezzling nearly $120,000 from the Hollis Cotton Oil Mill where she was the head bookkeeper and he was a truck driver. Upon entering their guilty plea they were each sentenced to 9 years in prison, plus a 20 year suspended sentence. They were also ordered to pay $60,000 in restitution each.

Read the story here.

Iowa Finance Director Arrested For Allegedly Embezzling At Least $1 Million

Randy Gene Stringer, 46, of Clive, Iowa, was arrested last Thursday for allegedly embezzling at least $1 million from Des Moines-based DES Staffing Services, Inc., a temporary employment agency for which he had served as finance director. According to court records, Stringer allegedly withdrew as much as $3.6 million from company accounts since 2007. It is also alleged that Stringer transferred some of the funds to accounts controlled by his girlfriend, Yasmin De La Rosa Duran, in the Domincan Republic. Meanwhile, it is noted that Stringer is married to Vickie Stringer.

Read the story here and here.

Update (10/26/10): Stringer was sentenced to 15 months in prison and ordered to make restitution in the amount of $911,000.

Update: New Hampshire Woman Sentenced In $300K Swim & Tennis Club Embezzlement Case

Rebecca McGuire, 52, of Amherst, New Hampshire, has been sentenced to to three concurrent 3 1⁄2-to 7-year terms for embezzling $311,500 from the Jasper Valley Swim and Tennis Club where she had been employed as a volunteer treasurer. A two year investigation revealed that over a nearly ten year period, McGuire had withdrawn cash and written at least 656 fraudulent checks on Jasper Valley's accounts to cash or to herself. According to McGuire's attorney, she has been making arrangements to satisfy the $300,000 restitution order. A separate civil suit by Jasper Valley to recover the loss has reportedly been settled. McGuire who was originally arrested and indicted last November, plead guilty three felony counts of "theft by unauthorized taking" in August 2009.

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

Read the story here and here.

Photo: McGuire hugs a relative just prior to sentencing; courtesy of anonymous FraudTalk reader

South Dakota Man Indicted In Alleged $161K Embezzlement Case

Anthony Noel Weber, 41, of Sioux Falls, South Dakota, was indicted on charges he allegedly embezzled some $161,000 from Hurley's Religious Goods Store, where he had been employed as a manager. According to prosecutors, Weber skimmed funds and wrote fraudulent checks from store accounts over a four year period from 2005 to 2009. Weber was indicted on one count of aggravated grand theft over $100,000 and two counts of grand theft of more than $1,000. He faces up to 35 years in prison, plus restitution if convicted on all counts.

Read the story here and here.

Update (5/3/10): Weber plead guilty to one count of grand theft today. He faces up to 10 years in prison.

Update (9/9/10): Weber was sentenced to a net six months in prison.

Billionaire Hedge Fund Manager Arrested For Fraud & Insider Trading

Raj Rajaratnam, 52, the billionaire hedge fund founder and head of New York-based Galleon Group, was arrested Friday and charged with fraud and insider trading in a wide ranging case of conspiracy that netting a reported $20 million in ill-gotten gains. Specifically, Rajaratnam has been charged with four counts of conspiracy and eight counts of securities fraud. The hedge funds named in the case are New Castle, Galleon Technology, and Intel Capital. Others charged criminally in the case include Rajiv Goel, director in strategic investments at Intel Corp.'s investment arm; Anil Kumar, a director at global management-consulting firm McKinsey & Co.; Danielle Chiesi and Mark Kurland of New Castle Partners LLC, the one-time equity hedge-fund group at Bear Stearns Asset Management Inc.; and Robert Moffat, a senior vice president at International Business Machines Corp. The conspirators allegedly traded on insider information in the stocks of at least IBM, Advanced Micro Devices, Sun Microsystems, Google, Polycom and Hilton Hotels.

Read the story here, here and here.

Update (5/12/11): Rajaratnam was convicted by a jury on 14 felony fraud and insider trading counts.

Update (10/14/11): Rajaratnam was sentenced to 11 years in prison for his role in "the largest hedge fund insider trading scheme in history," according to the Department of Justice.

Former Oregon Bookkeeper Pleads Guilty In $500K Embezzlement Case

Sandra Jean Klingman, 56, of Canby, Oregon, has pleaded guilty to embezzling $519,149 from Paul Schatz Furniture in Tigard, Oregon, where she had been employed as a bookkeeper for 12 years. According to prosecutors, Klingman stole the funds over the past two years by forging checks. According to reports, Klingman's thefts were prompted by her gambling addiction. Klingman was sentenced to 4 years in prison, plus restitution, as part of her plea agreement.

Read the story here, here and here.

South Dakota Man Accused Of Embezzling Nearly $300K From School District

Jamie Lee Beisch, 33, of Sioux Falls, South Dakota, has been indicted on charges he embezzled nearly $300.000 from the McLaughlin School District, for which he had been employed as its business manager. According to the indictment, Beisch embezzled the funds between 2007 and 2009. wherein he allegedly wrote himself fraudulent payroll checks totalling $279,019.65.

Read the story here and here.

Former Executive Director At Florida Animal Shelter Accused In $300K Embezzlement Case

Jim North, the former executive director of the Englewood Animal Rescue Sanctuary (EARS) in Sarasota County has been accused by the organization of embezzling as much as $300,000 from the agency. County investigators were notified last May by agency officials of the potential thefts after it was notified by Sun Trust Bank about "unusual activity" in its account and an internal review was conducted. No charges have been filed at this time and the investigation is ongoing. North left his position at EARS just prior to its report to authorities.

Read the story here.

Developing...

Madoff Victims Sue SEC For Missing Ponzi Scheme

Two victims in the Bernard L. Madoff Investment Securities Ponzi scheme case have sued the US Securities & Exchange Commission for failing to spot the fraud. The lawsuit was brought by Phyllis Molchatsky, a single retiree who lost $1.7 million and Steven Schneider, a doctor who lost more than $750,000. The lawsuit, which seeks the return of some $2.4 million, argues that its "sovereign immunity" should be waived if government employees are negligent. Many legal observers say the suit has little chance of succeeding, however.

Read the story here.

Former Delaware Volunteer Fire Company Treasurer Charged With Embezzling More Than $100K

Lisa Marie Butler, 37, of Delaware County, Delaware, has been arrested and charged with misappropriating some $103,000 from the Briarcliffe Fire Company based in Darby Township, for which she had served as Treasurer from 2006 to 2008. Authorities allege that Butler wrote 35 checks to herself and her husband over the two year period. Butler's husband has not been charged in the case at this point.

Read the story here and here.

Former Florida Municipal Administrator Reaches Plea Agreement Short Circuiting $500K Embezzlement Trial

Christopher J. Kovanes, 38, of Plantation, Florida, has reached a plea agreement prior to his trial for embezzling nearly $500,000 from Davie City, where he had served as Town Administrator. Kovanes pleaded guilty to felonly charges of fraud and money laundering and will serve 12 years in prison plus repay the $486,000 he misappropriated. Prosecutors had alleged that Kovanes fraudulently set up phony companies that would purportedly do mapping projects for the town, but which were billed for and never done. He was originally arrested in November 2005 and could have faced up to 180 years in prison if convicted on all counts. He was appointed to the post in April 2005.

Read the story here.