Washington State Woman Charged With Embezzling More Than $215K; Gambling Involved

From KIROTV on 4/29/13:

Oak Harbor bookkeeper accused of embezzlement

By Lee Stoll

Detectives in Oak Harbor want to hear from any groups that hired a local woman to handle accounts and bookkeeping.

According to court papers, 50-year-old Wendy Murphy stole more than $200,000 from two community homeowner association accounts.

"I try not to think too much about her because you shouldn't think things like that about people," said Treasurer Dan Kelly.

Kelly didn't know anything was missing from the Rolling Hills Glencairn Community account until the bank called in February. Murphy had apparently billed more than $20,000 in cash advances to a company credit card. Kelly checked the books and found another $30,000 missing from the reserve fund.

"We feel betrayed," said office manager Valerie Wiley.

Board members say Murphy collected water bill payments form residents and they claim she pocketed anything paid in cash. They also say money was moved to hide charges at a local casino.

Detectives say Murphy stole another $168,000 from the Hillcrest Village Water Company.

"Maybe she's kept books for other people that we're unaware of so we're asking them to come forward if they have similar issues," said Island County Sheriff Mark Brown.

Kelly said Murphy called and apologized. According to court papers, Murphy told police she stole money and was going to give them a statement. She hired a lawyer and is now apparently not talking.

Kelly said the money was going to pay for improvements in the middle-income community, including a new pool deck and water softener system.

"We're not rolling in money. We wouldn't be rolling in money even if she hadn't stolen anything," said Kelly.

Murphy had access to personal accounts. They have been reviewed and nothing is missing. Kelly said he never had a reason to be suspicious.

"Everything had been perfect for a long time and we never thought to ask," said Kelly

Former Pennsylvania Bank Exec Sentenced To 3 1/2 Years For Embezzling $719K; Blames Gambling & Alcohol Addictions

From the Times-Leader on 4/29/13:

Ex-bank executive sentenced on fraud charges

By Edward Lewis

WILKES-BARRE — A former investment broker with PNC Bank was sentenced Monday to 42 months in federal prison on charges he swindled more than $700,000 from the bank and eight customers.

Nicholas Polito Jr., of Scranton, was sentenced by U.S. District Court Judge A. Richard Caputo on a charge of bank fraud.

Polito’s attorneys, Patrick Casey and Lawrence Moran, blamed addictions to alcohol and gambling for why their client stole investments from eight elderly customers of PNC Bank.

Federal authorities said Polito was working as an investment broker with PNC Bank in Scranton when he stole money from 2005 to November 2011.

U.S. Assistant Attorney John Gurganus said PNC Bank repaid customers — including interests for their stolen investments. Polito repaid one customer $42,070 prior to being sentenced Monday and was ordered by Caputo to pay PNC Bank restitution of $673,349.

“The nature and circumstances of the offense is extremely serious,” Caputo told Polito, noting Polito violated the “trust” he earned from his employer and customers.

“Everything we do every day is trust,” Caputo said. “When you inject money into the situation, it is magnified. Seven or eight people would have been wiped out if PNC Bank did not compensate them.”

“I stole their money,” Polito said before being sentenced. “I lost their trust in me. I want to personally apologize. The guilt that I have will be with me for the rest of my life.”

Polito’s son, Nicholas III, said his father sought help for alcohol and gambling addictions prior to being charged by the U.S. Attorney’s Office in October 2012.

Nicholas III, of Connecticut, said his father had driven to his home in November 2011 to inform him about the thefts, an act that Caputo appreciated.

“That is the greatest lesson you’ll ever give him by driving to Connecticut and telling your son,” Caputo told Polito.

Caputo ordered Polito to begin serving his sentence on June 3.

Liquor Store Cashier In Vermont Charged With Embezzling $151K; Blames Gambling Addiction

From the Rutland Herald on 4/30/13:

Cashier answers to $151K embezzlement

By Brent Curtis

Fair Haven police say Denise Ballard was skimming more than just a little off the top.

The 45-year-old appeared in Rutland criminal court Monday, where she pleaded not guilty to a felony charge of embezzling from the liquor store she worked at for nine years on Liberty Street in Fair Haven.

During an 18-month span from May 2010 to November 2012, Ballard allegedly stole $151,387 from Liberty Street Discount Beverage, police said.

The Fair Haven woman allegedly voided valid sales and then withdrew money from the register. In an interview with police, Ballard allegedly said she would void sales and take money from the register one or two days a week in amounts varying from $100 to $500 at a time.

Ballard also told police she was having financial problems at the time related to household matters and a gambling addiction. She told police that sometimes she would use the extra money in her register to purchase lottery tickets.

Police Sgt. Shaun Hewitt said in an affidavit that when she was confronted about the thefts, Ballard said “she wished she had never done this and that she had a lot of guilt ever since she had started.” Hewitt said Ballard’s activities were discovered by owner Steven Wolk after new security cameras were installed.

Reached at the store Monday, Wolk said he was struggling with not only the financial loss but the betrayal of a longtime employee.

“We’re waiting for the court and restitution to pay back the money,” he said. “It was quite a blow to us financially but personally. One hundred and fifty thousand dollars is a lot of money, but it’s more than that.”

Despite the financial strain, Wolk said his business had survived.

No bail was set for Ballard, who also pleaded innocent to a misdemeanor count of petty larceny. She was released from court on conditions that included that she stay away from Liberty Street Discount Beverage.


Update (4/30/13): Ballard has pleaded not guilty to the charges she embezzled more than $151,000 from Liberty Street Discount Beverage.

Ohio Man Indicted On Charges He Allegedly Embezzled Over $1 Million From Insurance Carrier

From Insurance News on 4/28/13:

Ohio Man Indicted For Theft Of $1 M From Annuity Accounts

CLEVELAND, April 26 -- The U.S. Attorney for the Northern District of Ohio issued the following news release:

A Mansfield man was indicted on charges that he embezzled more than $1 million from an customer annuity accounts at an insurance company where he worked, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. Willard C. Lee, age 51, was indicted on one count each of insurance embezzlement and wire fraud. Lee was employed by Allstate. The indictment alleges that Lee embezzled approximately $1,056,000 from Allstate customer annuity accounts between July 2007 and December 2011. Lee forged customer signatures on withdrawal requests to Allstate and Lincoln Benefit  Life, a company wholly owned by Allstate, which sells annuities, according to the indictment.  Once fraudulent paperwork was submitted, Lee had the proceeds wire-transferred into bank accounts he controlled in Mansfield, according to the indictment.  The case was presented for indictment by Assistant United States Attorney James V. Moroney following an investigation by the Federal Bureau of Investigation;'s Mansfield office, who in turn were following up an investigation by the Investigative Services unit of the Allstate Insurance Company.  If convicted, the defendant's sentence will be determined by the court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.  An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.

Florida Man Creates Fake Insurance Company; Bilks Carrier Out Of "Hundreds of Thousands of Dollars"

From the Pensacola News-Journal on 4/29/13:

Cantonment insurance agent arrested for alleged fraud

Written by Eric Heisig

A Cantonment insurance agent was arrested late Sunday for creating a fake employment company to write fraudulent life insurance policies and profit off of them, authorities said.

Randall Peterson, 47, wrote 285 fake policies with American National Insurance Co., according to the state Chief Financial Officer’s office. The fake company, College Consultants of the Gulf Coast, tried to get individuals to attend employment seminars in Florida, Georgia and Mississippi and have them apply for life-insurance policies, the release says.

American National Insurance Company paid Petersen hundreds of thousands of dollars in commissions and bonuses, the news release says, and the fraud became apparent when the policies were canceled for nonpayment.

Petersen, arrested Sunday, is in the Escambia County Jail, being held on a $30,000 bond. He is charged with insurance fraud, grand theft and criminal use of personal identification, among other charges.

Investigators are still looking into his actions, and the outcome may affect his insurance license, the release says.

Maryland Woman Charged With Embezzling $453K; Buys House In Ghana

From the Associated Press on 4/29/13:


Woman charged with embezzling $453K from employer; allegedly use money to buy house in Africa

GREENBELT, Maryland — A Landover woman has been indicted on charges of embezzling more than $453,000 from her employer and using the money to buy a house in Africa, expensive electronics and jewelry.

A federal grand jury in Greenbelt indicted 40-year-old Mercy Coffie-Joseph on Monday. She is charged with wire fraud, money laundering and identity theft.

According to the 10-count indictment, Coffie-Joseph worked at Systems Assessment & Research Inc. and had the authority to make electronic payments on the firm's behalf.

Prosecutors say Coffie-Joseph transferred money from her employer's account to her own. Authorities say she bought a house in Ghana.

Prosecutors says items seized in a raid on Coffie-Joseph's home include a video camera worth about $10,000; a Gucci handbag worth about $885, diamond earrings and necklace and a Movado watch

Virginia Woman Sentenced To 4 Years For Embezzling $150K From Plumbing Concern

From Fredericksburg.com on 4/29/13:

Embezzlement nets woman prison time
 BY KEITH EPPS A woman who stole nearly $150,000 from her employer over the past few years was ordered Monday to serve four years in prison. Elizabeth Ann Boutchyard, 36, of Stafford County was sentenced by Judge David Beck to a total of 20 years with 16 years suspended. She had previously pleaded guilty in Spotsylvania County Circuit Court to four counts of embezzlement. According to Commonwealth’s Attorney Bill Neely, Boutchyard stole at least $149,850 from Southern Spotsylvania Plumbing, where she worked as the office manager between 2009 and last year. Neely said she spent the stolen money on such things as family bills, breast implants and tattoos.On July 24, according to court records, Boutchyard went to co-owner Jake Cornwell and admitted she had been forging his wife’s name on checks “for about a year.” She then used the checks to steal money from the company. Neely said more than 100 checks were forged. Neely said Boutchyard came forward only after realizing that she was about to be caught.Scott Stevens, the company’s certified public accountant, had been trying for weeks to get the company’s 2012 financial records. Boutchyard avoided providing them as long as she could and realized Stevens would discover her crimes once he got them, court records state. Cornwell promptly fired Boutchyard and reported the theft to the Sheriff’s Office. He initially thought about $50,000 had been stolen, but the investigation showed it was much more. In arguing for a stiff sentence Monday, Neely said Boutchyard’s theft has had a devastating effect on the Cornwells and the company. He said Jake Cornwell has had to go back to working 60- to 70-hour weeks despite physical ailments.He also pointed out that Boutchyard had prior embezzlement and bad check convictions. A sobbing Boutchyard, who was represented by attorney Ghislaine Storr Burks, expressed remorse for her actions and asked for mercy. Beck also ordered Boutchyard to make restitution of $108,749 to the Cornwells and $39,568 to Liberty Mutual Insurance Co. as part of the conditions of the suspended portion of her sentence.

California Man Charged With Embezzling $676K From Bank

From the Sacramento Bee on 4/29/13:

Cameron Park man arraigned on bank embezzlement charges

 

Posted by Cathy Locke

Read more here: http://blogs.sacbee.com/crime/archives/2013/04/cameron-park-man-arraigned-on-bank-embezzlement-charges.html#storylink=cpy

A 34-year-old Cameron Park man was arraigned today in federal court in Sacramento on charges of bank embezzlement.

Ethan George Banaszak pleaded not guilty to the charges and was released on $75,000 bond, according to a federal Department of Justice news release. He is to appear before U.S. District Judge Garland E. Burrell Jr. for a status conference May 17.

A federal grand jury returned an eight-count indictment Thursday charging Banaszak with embezzling thousands of dollars from his employer, a federally insured bank. According to court records, Banaszak allegedly made more than $660,000 in unauthorized withdrawals from bank customers' accounts and took $16,000 in cash from the bank's vault.

Read more here: http://blogs.sacbee.com/crime/archives/2013/04/cameron-park-man-arraigned-on-bank-embezzlement-charges.html#storylink=cpy

North Carolina Man Pleads Guilty To Embezzling $2 Million From Trade Business

From the News-Record on 4/27/13:
Former employee pleads guilty to 5 counts embezzlement

By Robert C. Lopez

GREENSBORO — A man accused of taking about $2 million from his former employer, pleaded guilty Monday in Guilford County Superior Court to five counts of obtaining property under false pretenses.

Eric Wayne Neal, 47, received two sentences of four years, 10 months to 6 years, seven months each, according to court documents.

 

Neal worked for Elrod Electrical Service in Greensboro. He was accused of inflating sub-contractor invoices.

 

Company owner Linda Elrod said Neal had been an employee for more than 20 years and handled the company’s residential business.

 

“A lot of the padding he did was for technical stuff that he knew I wouldn’t know was OK or not,” Elrod said. “But I would question the amount on the invoices, and he would always assure me that he had been over them and that they were correct.”

 

Elrod said the wrongdoing came to light through another employee, who questioned the ordering of excess materials.

 

Neal was carged after an investigation last year.

 

In addition to the counts he pleaded guilty to, Neal was charged with one count of embezzlement and one count of obtaining property under false pretenses, which were dismissed.

 

Neal’s attorney Marc Tyrey did not respond to a request for comment Friday morning.

Bank Teller In Pennsylvania Charged With Embezzling $129K

From the Pittsburgh Post-Gazette on 4/24/13:

Head teller from Troy Hill charged with embezzlement
By Rich Lord

A Troy Hill woman used her position at a bank to shift funds through a relative's account and into her own, according to an indictment accusing her of embezzlement and making false entries.

Diana Phillips, 39, was an assistant branch manager and head teller for a First National Bank branch, according to the indictment posted to the U.S. District Court docket today. She is accused of creating fictitious ledger entries to cover up transfers into an unnamed relative's holiday account. She then moved the money, totaling $129,318, into her account and that of her husband, according to the indictment.

If convicted, she should be ordered to forfeit the proceeds, according to the indictment.

Upstate New York Woman Pleads Guilty To Charges She Embezzled $1.3 Million From Stainless Steel Maker

From WKBW Ch. 7 on 4/29/13:

Woman Pleads Guilty To Embezzling Approx. $1.3 Million From Employer

By Mitch Simon

BUFFALO, NY (WKBW) - An Arcade woman plead guilty, as charged, Monday morning after she stole approximately $1.3 million from her employer.

44-year-old Debra Davis plead guilty to Grand Larceny, Falsification of Business Records, and Offering a False Instrument for Filing. Davis admitted that between October of 2010 and September of 2012, she stole the money by embezzlement and falsifying company financial records.

The embezzlement occurred while employed as a bookkeeper for American Stainless Corporation in Buffalo.

Davis also admitted she evaded paying state income taxes by failing to report these ill-gotten earnings on her NYS Income Tax returns.

Davis used the money for gambling, buying a tow-truck business named "Triple Star Towing," which she named after her favorite slot machine game, and to purchase various consumer goods.

Davis faces up to 25 years in prison when she is sentenced on July 22nd.

California Man Sentenced For Embezzling $150K From Community College

From The Skyline View on 4/27/13:

District embezzlement update

Renee Abu-Zaghibra

 

The man charged with embezzling money from the district last October has been sentenced April 26.
Bradley Witham, director of information technology support at the San Mateo County Community College District, was charged with embezzlement on Oct. 26. Witham embezzled $150,000 in computer equipment, which he then resold.

Steve Wagstaffe, District Attorney, attended the sentencing hearing April 26. As reported by Wagstaffe, Witham will receive three years in prison. The defense had requested two years while the district attorney requested four years.

“The judge decided to go in the middle,” said Wagstaffe.

According to Kathy Blackwood, chief financial officer of the district, Witham was caught when he tried turning in receipts that did not match what was purchased. The system has been changed since then in order to assure that this does not happen again.

Purchases will be placed by an individual, but not by the person who will be receiving the item. The receipts will then be put through a thorough review, then scanned, uploaded and finally audited. Auditors now have a system in place that will help sort and look at the receipts in order to spot anything suspicious or anything that doesn’t follow the guidelines.

“We plan to be efficient and do the best in every way possible,” said Blackwood.



Note: the defedant's full name is Bradley John Witham, 42.

Former California Banker Charged With Embezzling $775K

From San Diego News 6 on 4/25/13:

Chula Vista Banker at Wells Fargo Branch Charged With Defrauding Bank and Customers

SAN DIEGO (CNS) - A Chula Vista banker was charged with defrauding Wells Fargo and several of its customers by stealing and laundering about $775,000 from Wells Fargo customer accounts, according to a federal indictment unsealed Thursday.

Ricardo Adolfo Benavente III faces 80 felony counts, including bank fraud, embezzlement and aggravated identity theft. He pleaded not guilty at his arraignment today.

According to the indictment, Benavente, a banker at a Wells Fargo branch office in Chula Vista, used his access privileges at the bank to move hundreds of thousands of dollars from the accounts of Wells Fargo customers into accounts he controlled.

The indictment further alleges that in many instances Benavente laundered the stolen funds in order to disguise the fact that he had stolen them.

Between April and October of 2009, Benavente stole the funds from the accounts of four Wells Fargo customers, according to the indictment.

Benavente, 27, allegedly funneled the stolen funds through various Wells Fargo accounts that he created and controlled, and which he had opened in the name of fictitious customers expressly for the purpose of conducting a scheme to defraud.

In one case, Benavente allegedly funneled stolen funds through a PayPal account that he had set up in the name of one of his victims, in order to disguise the fact that the money had been stolen.

Benavente then used the PayPal account to direct the funds to his own bank, the indictment states.

The indictment alleges that in furtherance of the fraud scheme, Benavente stole and used the names and account numbers of his various victims in order to create the appearance that the transactions were being conducted by the customers themselves.

Benavente also created a trail of fraudulent bank instruments, such as withdrawal slips and cashier's checks, which he used to steal money from his victims' accounts and direct those funds to accounts he controlled, the indictment alleges.

Former Bank Manager In California Indicted For Allegedly Embezzling $320K

From the San Jose Mercury News on 4/24/13:

Former bank manager facing prison for embezzlement

SACRAMENTO, Calif.—Federal prosecutors say a former manager of a rural Northern California bank is facing up to 30 years in prison for allegedly embezzling hundreds of thousands of dollars.

A spokeswoman for the U.S. attorney's office in Sacramento says 52-year-old Roxanna Foley is free on a $50,000 bond after a federal grand jury returned an indictment charging her with theft and embezzlement. Prosecutors say between October 2011 and March 2012 Foley embezzled about $320,000 from the Eastern Sierra Community Bank in Bridgeport, where she was employed as a manager. U.S. attorney's spokeswoman Lauren Horwood said Wednesday that Foley is scheduled to appear in court on May 29 for a status conference. It was not known if Foley had retained an attorney. Bridgeport is a community of several hundred people in remote Mono County, about 120 miles south of Reno, Nev., or about 350 miles north of Los Angeles.

Former Community Arts Center Employee In Georgia Pleads Guilty To Embezzling $1.1 Million

From the Associated Press on 4/23/2013:

Former Woodruff Arts Center employee pleads guilty to embezzling more than $1 million

ATLANTA — A former employee of the Woodruff Arts Center in Atlanta on Tuesday pleaded guilty to embezzling more than $1.1 million from the organization that offers a variety of visual and performing arts.

Ralph Clark, 42, entered a guilty plea in federal court after reaching a deal with federal prosecutors, who are recommending a sentence of 41 to 51 months in prison. Chief U.S. District Court Judge Julie Carnes told Clark he would likely also be ordered to pay restitution. Sentencing is set for Aug. 7.

"The Woodruff Arts Center is an important part of the fabric of our community," said U.S. Attorney Sally Quillian Yates. "This defendant embezzled over $1 million from funds intended for the benefit of our citizens."

Clark worked at the Woodruff Arts Center as an HVAC mechanic from October 2004 until he was fired in October of last year, prosecutors said. He was promoted to director of facilities in the last two years of his employment, and his duties included maintaining the center's infrastructure.

He was authorized to approve vendor contracts up to $50,000, and prosecutors say he stole more than $1.1 million from the center between November 2005 and October 2012.

He used his wife's apartment cleaning business to bill the arts center for services that either were not provided or that he performed himself, prosecutors said. He also hired a maintenance company and said that if the company wanted future work at the arts center, it would have to submit inflated invoices and give him kickbacks of 30 percent.

The center began an internal audit after a supervisor raised questions about invoices submitted by Clark. Prosecutors say Clark admitted to the embezzlement when presented with the findings of the internal investigation.

The Woodruff Arts Center includes the Alliance Theatre, High Museum of Art, Young Audiences, 14th Street Playhouse and the Atlanta Symphony Orchestra.

Update (3/4/14): Clark was sentenced to 2 1/2 years in prison.

Bank Teller In Pennsylvania Charged With Embezzling $129K

From the Associated Press on 4/24/2013:

Feds: Pittsburgh teller embezzled $129,000 by transferring money through relative's account

PITTSBURGH — An assistant branch manager and head teller at a Pittsburgh bank has been charged with embezzling more than $129,000.

A federal grand jury charges that 39-year-old Diana Phillips worked at a First National Bank branch when he used her position to move bank funds into a relative's holiday account and then into her own joint checking account shared with her husband.

Investigators say Phillips faked ledger entries to cover up the fraudulent transfers.

Federal prosecutors want her to forfeit the allegedly stolen money if she's convicted.

Online court records don't list an attorney for Phillips.


Update (2/7/2015): Phillips was sentenced to 6 months in prison.