Tennessee Man, Son-In-Law Of Business Owner, Charged With Embezzling $150K

David W. Baldwin, 51, of Johnson City, Tennessee, was charged with embezzling nearly $150,000 from Dennis Powell Body Shop, a local business owned by his father-in-law, where he had been employed as manager. Specifically, Baldwin was charged with more than 100 counts including theft, forgery, and identity theft. Specifics on how the thefts were allegedly accomplished were not revealed, however, it is believed that Baldwin forged company checks over an unspecified period of time.

Read the story here and here.

Update: Former Mississippi Bank Exec Charged In 30 Year Embezzlement Scheme That Netted At Least $1 Million

Margaret S. Migues, 52, of Jackson, Mississippi, was charged yesterday with embezzling at least $1 million over nearly a 30 year period from client accounts at Hancock Bank in Ocean Springs where she had been employed as the longtime branch operations manager. Migues has reportdly agreed to plead guilty to a one count Information for the thefts which allegedly spanned from 1980 and 2009. According to authorities, Migues and a former teller at the bank, Doris "Willie" Burney, misappropriated more than $1 million over this period.

Read FraudTalk's original post on this story here.

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Update (3/18/10): Margaret S. Migues pleaded guilty yesterday to bank embezzlement charges. Investigation reveals that the thefts, spanning nearly 30 years, netted nearly $3 million, instead of the earlier estimate of $1 million, according to reports.

Update (5/26/10): Migues, now of Ocean Springs, Mississippi, is expected to plead guilty today. Migues and cohort Doris "Willie" Burney are believed to have embezzled millions from Hancock Bank over a nearly 30 year period, from 1980 through 2009.

Update (6/10/10): Doris "Willie" Burney, now 62, has been formally charged for her involvement in this embezzlement scheme. Migues is scheduled to be sentenced this August.

Update (10/13/10): Migues and Burney were both sentenced to 8 1/2 years in prison for their roles in the embezzlement scheme that targeted the accounts of elderly cusotmers of Hancock Bank, ranging in age from 71 to 102, where they both started out as bank tellers. They were also ordered to pay $3.4 million in restitution, the latest estimate of the loss. Victims of their misappropriations have been made whole by the bank.

Oregon Financial Planner Sentenced For Bilking Elderly Investor Out Of $563K

Colleen A. Averill, 61, of Beaverton, Oregon, was sentenced yesterday to 3 years in prison for bilking a 95 year old woman out of $563,000 entrusted to her as a financial planner. The victim, Mary Pence, testified in court that Averill "acted like she was my best friend...(but) was an out-and-out thief." Averill had previously pleaded no contest to multiple counts of first-degree aggravated theft, criminal mistreatment and forgery. Averill reportedly stole the funds in part to finance a gambling habit.

Read the story here.

Hat Tip: Reader Kelly

California Psychic & Investment Manager Known As "America's Prophet" Charged With Fraud By The SEC

Sean David Morton, 51, of Hermosa Beach, California, and a self-described psychic and "America's Prophet," has been accused by the Securities and Exchange Commission of defrauding more than 100 investors out of as much as $6 million. The SEC complaint alleges Morton, through his investment firm, Delphi Investment Group, lured investors with claims that his psychic expertise would provide his investment team with guidance and fraudulently claimed historical investment successes. The SEC complaint also alleges that Morton and his wife, Melissa Morton, 42, diverted funds to their own non-profit religious organization, Prophecy Research Institute. The SEC claims Morton invested "only about half of the funds" invested with the foreign-currency trades he had promised. One of Morton's investment newsletters claimed he was getting average returns of 3% to 5% a day.

Read the story here, here and here.

Hat Tip: Reader Doug

Listen folks: Not than it excuses his actions, but anyone that invested with this lunatic deserves to lose their money...

Washington State Broker Under Investigation For Bilking Clients Out Of At Least $8 Million

Rhonda L. Breard, 47, of Kirkland, Washington, is currently being investigated by the state Department of Financial Institutions for allegedly bilking clients out of at least $8 million. Breard, who is president of Breard & Associates Wealth Management, who has not yet been charged with a crime, allegedly falsified monthly statements to clients. Breard was the host of a financial television talk show, "Help Me Rhonda." Reports indicate that Breard owns two homes -- one Lake Washington property in an area known as "The Garden of Eden" and a house in Redmond -- worth nearly $5 million. She also has eight cars, six snowmobiles, three jet skis and a motor home. Some reports indicate Breard may have attempted suicide. The state investigation is ongoing.

Read the story here, here and here.

Update (8/12/10): Breard, now 48, was sentenced to 80 months in prison (six years and eight months) for embezzling what is now believed to be more than $12 million from her clients. She plead guilty last April to the charges. Breard's thefts are believed to date back to 2000.

Hat tip: Reader Julie

Former US Virgin Island Insurance Agent Convicted At Trial For Bilking Clients Out Of $200K

John Gumbs of St. Thomas, US Virgin Islands, was convicted today on felony fraud charges by a jury after it deliberated for only 30 minutes. Gumbs was accused in a two count indictment, including obtaining money by false pretense and racketeering, of bilking clients out of $200,000. Prosecutors alleged that over the course of nearly three years, Gumbs, through his insurance agency, John J. Gumbs Insurance Agency, collected insurance premiums from some 246 policyholders which he misappropriated. Gumbs was originally arrested in November 2008 after US VI insurance investigators identified a "pattern of fraud" in a routine audit.

Read the story here and here.

Hat tip: Reader Joe

Former Illinois Receptionist Sentenced To 4 Years For $231K Embezzlement Scheme

Jennifer Derrickson, 49, of Warrenville, Illinois, was sentenced to 4 years in prison for embezzling $231,768 from Liquid Container LP of West Chicago, where she had been employed as a receptionist. In August and September 2008, Derrickson reportedly opened several bank accounts using personal information from an unsuspecting fellow employee and deposited seven incoming accounts receivable checks meant for the company. Derrickson's scheme was uncovered before she could withdraw any of the funds, except for $5,000, according to reports. In an interesting twist, Derrickson called the company claiming to be a federal agent requesting that the investigation be halted. However, officials were unable to confirm the request resulting in criminal charges being brought. Derrickson plead guilty to theft over $100,000 earlier this year. Derrickson's attorney claimed she was suffering from depression following a divorce and a losing custody battle.

Read the story here, here and here.

Ohio Couple Charged With Embezzling $1.3 Million

Scott C. Adair, 50, and Linda A. Adair, 52, of Canfield, Ohio, have been charged with embezzling at least $1.3 million from Southwind Trucking Company in Austintown, where Scott Adair was a co-owner. According to the criminal complaint, Scott Adair masterminded the misappropriation from March 2004 through October 2007. Investigators believe the scheme actually dates back to 2000 and perhaps earlier. He has been charged with 11 counts of aggravated grand theft, money laundering, telecommunication fraud, tampering with records and engaging in a pattern of corrupt activity. Linda Adair was charged with four counts of complicity to grand theft, complicity to money laundering and complicity to engage in a pattern of corrupt activity. The complaint seeks the forfeiture of the couple's home, contents, bank accounts, investment accounts and other property. Scott Adair's business partner in Southwind Trucking is Ric Barringer, who filed a civil suit against the Adair's last April. The company closed down in October 2007 and had to lay off 30 employees as a result, according to reports.

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Florida Couple Charged In Alleged $135 Million Ponzi Scheme

Gaston E. Cantens, 71, and Teresita Cantens, 73, of Miami, Florida, have been charged by federal authorities with running an illegal Ponzi-type investment fraud scheme that bilked investors out of as much as $135 million. Prosecutors allege the couple, who are founders and co-owners of real estate developer Royal West Properties Inc., lured investors with promises of returns of as much as 16 percent. The complaint alleges the Cantens' scheme began in 2002 when they targeted elderly investors from South Florida's Cuban-exile community while attending religious and charitable events. According to the complaint, the Cantens "portrayed themselves as a pious couple closely involved with educational and religious organizations, while in reality they were living lavishly off money from defrauded investors." Royal West Properties purports to invest in real estate lots on the western side of Florida. According to reports, Gaston Cantens served as an advisory board member for Belen Jesuit Preparatory School, and the two are parents of former state Rep. Gaston I. Cantens.

Read the story here, here and here.

Read the SEC complaint here.

Hat Tip: Reader Doug

Upstate New York Woman Pleads Guilty To Embezzling $550+K From 2 Law Firms

Paulette Reed, 44, of Lackawana, New York, pleaded guilty yesterday to embezzling a total of $556,765 from Lippes Mathias Wexler Friedman LLP of Buffalo and Simpson and Simpson of Williamsville, where she had been employed as a bookkeeper and administrator. Prosecutors allege that over a period of about six years, Reed misappropriated $282,356.95 from the Lippes firm from May 2003 through February 2008 and then $274,408.26 from the Simpson firm from July 2008 through July 2009. Reed reportedly used the stolen funds to pay household bills and finance her daughters’ college educations. Reed's alleged thefts were accomplished by unauthorized use of company checks, wire transfers and bank checks. Specifically, Reed pleaded guilty to two second-degree grand larceny counts. She faces up to 15 years in prison upon sentencing which is scheduled for May 24th. She must also pay restitution.

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Former CFO Of New York Charity Admits Embezzling $324K

Raymond Smyth, 44, of Buffalo, New York, pleaded guilty yesterday to charges he embezzled $324,388 from the St. Vincent DePaul Society where he had been employed as chief financial officer. Prosecutors alleged that Smyth, who had been employed at the charity for 19 years, misappropriated the funds over a seven year period from July 2002 until August 2009. Specifically, Smyth pleaded guilty to one count of grand larceny. St. Vincent DePaul Society is a non-profit arm of the Catholic Diocese of Buffalo, which operates a soup kitchen and clothing store in the city. His thefts were reportedly spurred by an infatuation with an exotic dancer, for whom he purchased jewelry and items from Victoria Secret. Smyth faces up to 15 years in prison upon sentencing.

Read the story here, here and here.

CFO Of Pennsylvania Development Company Charged In $6.3 Million Embezzlement Scheme

Michael G. Spada, 50, of East Norriton, Pennsylvania, was charged with embezzling $6.3 million from Scannapieco Development Corp., a local real estate development company for whom he had served as chief financial officer. Prosecutors allege that over the course of nine years, from September 2000 until he was fired in May 2009, Spada diverted monies from company accounts and the personal accounts of Scannapieco's founder, Tom Scannapieco, for his own benefit. Spada has been charged with wire fraud, bank fraud, filing a false tax return and making a false statement to the federal government. Spada had been employed by Scannapieco Development for 23 years, according to reports. Spada took at least $400,000 in unauthorized salary as well as diverted more than 100 company checks to his own accounts.

Read the story here and here.

Update (9/28/10): Spada was sentenced yesterday to six years in prison.

Minnesota Man Accused Of Misappropriates $6 Million In Fraudulent Billing Scheme

Chad Wilfred Jurgens, 38, of Big Lake, Minnesota, has been charged with misappropriating $6 million from Haas TCM, a Pennsylvania-based chemical supply company, where he was an account manager. Prosecutors allege that over more than a six year period, from January 2002 until March 2008, Jurgens submitted fraudulent invoices ostensibly for chemicals ordered by Seagate Technology, an account he managed. He has been charged with one count of wire fraud. Prosecutors allege Jurgens used a company set up by a friend, VR Services, into which payments were received. The friend, Vincent Reis, 37, of Mound, Minnesota, has not been charged in the case.

Read the story here.

Update (4/6/10): Jurgens pleaded guilty today to one count of wire fraud in connection with the embezzlement of some $6 million from Haas TCM.

Update (7/14/10): Jurgens, now 38, was sentenced to 63 months in prison and ordered to pay $6.3 million in restitution.

Alabama Woman Pleads Guilty To Embezzlement and Mortgage Fraud In $578K Scheme

Roxanne Saunders Gilliland, 56, of Rainbow City, Alabama, pleaded guilty to charges she embezzled $577,796 from Dawson Construction Company where she had been employed. Gilliland also plead guilty to mortgage fraud charges. Prosecutors alleged that over a three and a half year period, between March 2005 and October 2008, Gilliland withdrew the funds from company-related personal and business accounts. She is also alleged to have made a fraudulent mortgage application in 2007 claiming a Dawson corporate account as one of her own personal assets. She faces up to 30 years in prison, plus restitution and a fine of up to $1 million.

Read the story here, here and here.

New York Man Indicted In $300K Embezzlement Scheme

Robert Wirchansky, 47, of Yonkers, New York, was arraigned today on four felony counts charging him with embezzling nearly $297,000 from Nationwide Insurance, with whom he had been employed as a claims manager. Prosecutors allege that over more than a five year period, between November 2000 and January 2006, Wirchansky, forged checks to himself and his relatives. Wirchansky reportedly told authorities that he stole the money to pay for his wife's medical bills after she had had an automobile accident. He has been charged with second degree grand larceny and forgery.

Read the story here, here and here.

Read the Westchester D.A.'s announcement here.

Update (1.13.11): Wirchansky was sentenced to three years in prison after pleading guilty to all four counts in the indictment.

Hat tip: Reader Joe.

Missouri Grain Dealer Gets 9 Yeasr For $27 Million Ponzi Scheme

Cathy M. Gieseker, 45, of Martinsburg, Missouri, was sentenced last Thursday to 9 years in prison for operating a Ponzi-type fraud scheme that bilked some 180 farmers out of as much as $27 million. Gieseker plead guilty last November to one count of mail fraud in connection with the scheme which collapsed a year ago. Gieseker, who operated grain transportation and brokerage businesses, T.J. Gieseker Farms and Trucking and T.J. Gieseker Trucking LLC, reportedly would offer higher than spot market prices for their grain - as much as 50 to 100 percent higher, which she actually sold at market prices, but then kept much of the proceeds for herself or to pay earlier customers. Gieseker told her clients that she could offer them higher prices because she fraudulently claimed she had contracts with Archer Daniels Midland. Prosecutors alleged that Gieseker's scheme lasted about a hear and a half, from October 2007 until February 2009. She was originally arrested and charged last July.

Read the story here, here and here.

Read the criminal complaint here.