A Busy Day For Embezzlement In The US Yesterday

Lots of Major embezzlement cases in the news yesterday:

 

 

North Carolina Fire official helps himself to $269,000 in municipal funds:

http://www.mcdowellnews.com/news/article_45a78e62-5236-11e3-bd23-0019bb30f31a.html

 

Office manager for medical clinic in Kansas gets “at least $130,000” and maybe as much as $182,000: 

http://www.kansascity.com/2013/11/20/4637667/brookside-clinic-manager-pleads.html

Former Connecticut Tribal exec get only 18 months for embezzling $100,000:

http://www.lasvegassun.com/news/2013/nov/21/us-tribe-embezzlement/

Secretary from Anchorage high school district steals $135,000 in the "largest heist ever" impacting the Anchorage school district:

http://www.dailyjournal.net/view/story/b26fce1e16ea475eac7b3baa7fca35b8/AK--Embezzlement-Plea/

Texas man is 5th to plead guilty to conspiracy in diversion of $133 million intended for payroll taxes: 

http://www.seattlepi.com/news/texas/article/Man-pleads-guilty-in-Texas-to-133M-tax-fraud-4998668.php

 

Michigan woman pleads guilty to embezzling $148,000 from political consulting firm: 

http://www.mlive.com/news/grand-rapids/index.ssf/2013/11/former_employee_of_john_yobs_c.html

 

Former law enforcement official and his wife charged with embezzling over $100,000 from fire department in upstate New York:

http://www.stargazette.com/article/20131121/NEWS01/311210041/Former-fire-chief-Schuyler-sheriff-s-sgt-pleads-guilty-embezzlement-from-fire-co-?nclick_check=1

Former athletic director for the Tulsa, Oklahoma public school system receives only 7 months for embezzling $92,000: 

http://www.fox23.com/news/local/story/Former-TPS-athletic-director-sentenced-to-7/fM3Y7soOv0qKN9rv6dx9uA.cspx

 

Court administrator in Missouri pleads guilty to embezzling about $140,000 in public funds:

http://www.kansascity.com/2013/11/21/4639804/former-jackson-county-court-administrator.html

Private investigator offers a long look at love

From WickedLocal on 10.31.13:

After 30 years working as a private investigator in the corporate world, Wellesley resident Chris Marquet is expanding his business into the romance sector.  He admits, though, that there’s little romance that comes with work that involves taking a long, hard look into the backgrounds of potential suitors.

"It’s more self preservation," Marquet said of his new service: CheckOutYourPartner.com, which offers in-depth analysis of clients’ significant others. "It’s geared toward people that want to protect their assets, interests or loved ones."

...

Read the whole article here.

Massive $20 Million Embezzlement Alleged In Chicago

See Crain's Chicago Business article today, "The $20 million fraud scheme that almost never ended."   Husband and wife doctors allege that their bank, Devon Bank, turned a "blind eye" to a conspiracy that allowed two employees to embezzle some $20 million from their medical practice over a period of about 21 years.  The two former employees, also named as defendants in the suit, are identified as Irina Nakhshin and Inna Koganshats. 

Wow.  Developing...

St. Louis Post Dispatch: Wave of embezzlement cases hits St. Louis region

The St. Louis Post Dispatch published an article today entitled, "Wave of embezzlement cases hits St. Louis region," featuring Marquet International, as excerpted from the article:

... But “St. Louis isn’t alone,” said Chris Marquet, head of corporate investigations firm Marquet International in Wellesley, Mass. Cases of white collar fraud appear to be rising across the country, Marquet said.

While no one maintains a comprehensive database of employee fraud cases, an annual study by Marquet International of major embezzlement cases found that 2012 “was a blockbuster year for employee theft in the United States, accelerating over the shocking pace set over the past couple of years.”

Marquet said he expects the pace to increase in 2013.

The 2012 study found 528 major embezzlement cases, defined as thefts totaling more than $100,000. That was an 11 percent increase from 2011...

Some were greedy, Marquet said. Some had gambling addictions. In many cases, the weak economy seemed to act as a driving force behind these crimes, leading employees to stretch across criminal lines to make ends meet or sustain a lifestyle beyond their means.

“Some perpetrators came to believe they were owed this money or they deserved this money,” Marquet said.....

Read the whole article here.

Washington Post: Inside the hidden world of thefts, scams and phantom purchases at the nation's nonprofits

The Washington Post published an above-the-fold article entitled, Inside the hidden world of thefts, scams and phantom purchases at the nation's nonprofits, which is quite thorough and illuminating.  It also happens to include a reference to the 2012 Marquet Report on Embezzlement with an appropriate quote from yours truly.

Read the whole article here.

Check Out Your Partner Launched By Marquet International, Ltd.

See www.checkoutyourpartner.com

For Immediate Release

Contact:

Karen White, Vice President of Administration

(917) 733-1038 or info@marquetinternational.com or info@checkoutyourpartner.com  

 

Marquet International launches CheckOutYourPartner.com – offering exclusive matrimonial investigations and screening service focused on significant others

 

Boston – October 7, 2013 – Marquet International Ltd. announced today that it has launched CheckOutYourPartner.com, a website through which it offers a battery of matrimonial investigations service along with a background screening service for high net-worth individuals seeking to learn more about the track records, backgrounds and histories of potential spouses and significant others.

 

Chris Marquet, CEO of Marquet International commented, “Since 2007 we have provided high-end matrimonial investigations and due diligence services to exclusive consumers on an ad hoc basis.  With CheckOutYourPartner, we have now codified the services as a distinct offering for our valued non-commercial clients.”

 

In matrimonial dispute cases, CheckOutYourPartner provides a range of investigative services, including:

·         Verifying, determining & documenting fidelity issues;

·         Identifying and documenting personal problems and vices;

·         Assessing and tracing assets;

·         Financial investigations and separation analysis;

·         Computer forensic analysis;

·         Developing evidence;

·         Providing ongoing stationary and mobile monitoring;

·         Risk and threat assessments;

·         Documenting abuse;

·         Providing protective security and consulting; and,

·         Witness development. 

 

KnowYourParnter also provides a high level vetting service of potential spouses and significant others in response to the explosion of online dating activity in the US.  “If they do it at all, online dating services do not do an adequate job of screening their members for serious issues such as criminal histories, financial problems and other risk factors.  CheckOutYourPartner assists a discerning clientele with the vetting process in order to align hearts with minds.”

 

Unlike the many online database information aggregators purporting to provide “background investigations,” CheckOutYourPartner offers “hand crafted” professional investigative services for clients seeking thorough, verified and accurate information obtained in a legal and discreet manner.  “These days there is a tremendous amount of information out there online – much of which is irrelevant or inaccurate – which has to be sifted through.  Nevertheless, this must be augmented with more traditional fact finding methods as there is no substitute for boots on the ground,” said Marquet.

* * * * *

 

About CheckOutYourPartner

CheckOutYourPartner is an exclusive screening and investigative service for discerning consumer clients seeking to discreetly learn more about the backgrounds and track records of spouses, potential spouses and significant others.  CheckOutYourPartner experts also provide a wide range of matrimonial dispute investigative services, including verifying, determining & documenting fidelity issues; identifying and documenting personal problems and vices; assessing assets; conducting financial investigations; providing computer forensic analysis; developing evidence; ongoing stationary and mobile monitoring; risk and threat assessments; protective & security consulting services, documenting abuse; and witness development.  For more information, go to www.checkoutyourpartner.com. 

  

About Marquet international Ltd.

Marquet International is a professional business investigations, due diligence, litigation support and security consulting firm, based in Boston.  Led by 30-year veteran industry expert, Chris Marquet, the firm provides Corporate Intelligence & Due Diligence services in corporate transactions and to vet key personnel; Litigation Support and Corporate Investigation services on behalf of general counsel and law firms representing clients in matters involving fraud and employee misconduct, intellectual property disputes, hostile takeovers, asset recovery, electronic evidence and forensic accounting; and a range of Security Consulting Services.  For more information, go to www.marquetinternational.com. 

 

Judge Rejects Plea Agreement For City Councilman In $304K Embezzlment Case

Judge rejects embezzlement deal for former Glendale councilman (Los Angeles Times)

A judge on Friday rejected a plea deal reached between prosecutors and a former Glendale councilman accused of embezzling more than $304,000, calling the agreement a "slap on the wrist" for someone in a position of public trust.

 

Los Angeles Superior Court Judge Stephen Marcus said former Councilman John Drayman should go to jail if found guilty of the embezzlement, perjury and tax fraud charges, rejecting a deal that would have exchanged a guilty plea for community service and restitution.

 

Drayman is now scheduled to begin his criminal trial in November...

Another One For The Resume Liar's Club: Elizabeth O'Bagy

“The Institute for the Study of War has learned and confirmed that, contrary to her representations, Ms. Elizabeth O’Bagy does not in fact have a Ph.D. degree from Georgetown University,” the institute said in a statement. “ISW has accordingly terminated Ms. O’Bagy’s employment, effective immediately.”  O'Bagy's article was relied upon by Secretary of State Kerry to promote an attack on the Assad regime in Syria for reportedly using chemical weapons.

Read the story here: http://www.politico.com/story/2013/09/wall-street-journal-elizabeth-obagy-fired-96637.html
Developing...

Utah Woman Pleads Guilty To Embezzling $145K; Former CFO May Have Stolen As Much As $1 Million

From The Salt Lake Tribune:

Pool Cover Specialists — you can guess what this West Jordan company makes — set a sales record last year. But it did so after climbing out of a hole that someone else dug — one so deep that it could have killed the business.

"We broke a 29-year company record in 2012, even after we caught our CFO (chief financial officer) with her hand in the proverbial cookie jar," said Bruce Grogg, Pool Cover's CEO.

Last week, Penny Thurman pleaded guilty in 3rd District Court to one charge of theft by deception and a second charge of unlawful use of a credit card — both second-degree felonies. She admitted stealing $145,000 over a period of more than two years. Gregg said the amount may be a lot more, as much as $750,000 to $1 million.

"That was all we were able to prove," he said.

The thefts began just four weeks after Thurman was hired in 2009 and continued until March 2012. Grogg said Thurman had complete control over the accounting department. She misused company credit cards, set up double payrolls and paid vendors who didn't exist.

"She had everybody fooled, including our auditors. We trusted her 100 percent," Grogg said.

...

Former Illinois Media Exec Pleads Guilty To Embezzling $264K

From the Chicago Tribune on 6/13/13:

A former Tribune Co. executive pleaded guilty Wednesday in federal court to mail fraud, admitting she stole $264,000 in commissions meant for the company.

Stephanie Pater, 39, had drawn the ire of a federal judge early this year when she failed to appear in court after she was charged.

Pater, a former director of real estate for Tribune Co., left the company in 2010 to form her own real estate management business. Tribune Co. hired Pater to oversee its real estate holdings for a monthly fee.

Pater admitted that she stole the $264,000 by creating a fake contract with Tribune Co. that improperly directed commissions from a real estate brokerage business to her company, not Tribune Co. The thefts took place from March to September 2010, prosecutors said.

...

Former General Manager Of Illinois Company Charged With Embezzling More Than $2 Million

From the Chicago Tribune:

A longtime former general manager of a west suburban chemical company has been charged with embezzling more than $2 million, in part to pay off credit card bills and remodel her kitchen, Cook County prosecutors said Thursday.

Kathleen Barth was fired as general manager at Kraft Chemical Co. after the thefts were discovered a year ago, according to a Circuit Court lawsuit filed by the company to recover the losses.

According to the lawsuit and prosecutors, Barth was paid $65,000 a year but secretly inflated her compensation to as much as $286,000, disguising the additional money as bonuses and commissions.
She also electronically transferred about $990,000 from the company's checking account to pay off her personal credit cards, prosecutors alleged. According to the lawsuit, those payments to her American Express card totaled as much as $40,000 in a single month.

Prosecutors charged that Barth also stole from Kraft by issuing unauthorized company checks directly to herself and having the company issue checks to contractors to pay for work at her Chicago home. She spent as much as $91,000 in company funds to remodel the kitchen, according to the lawsuit.

Barth, 56, was arrested Wednesday night on a warrant that set her bail at $200,000. She is being held in Cook County Jail until a hearing Friday at which prosecutors intend to seek an increase in the bail amount.

...

Barth, who joined the company in April 2005, grew bolder with each year she got away with the thefts, according to the lawsuit. She allegedly inflated her salary to $101,500 in 2006 with the phony bonuses and commissions. By 2011, her salary had soared to $286,000 as part of the scheme, the lawsuit alleged. In that way, Barth stole more than $840,000, prosecutors charged.

She also used company money to pay her personal Citi Card and American Express credit cards, sometimes tens of thousands of dollars at a time. The lawsuit alleged that Barth disguised electronic transfers on company paperwork by referring to them as "profit sharing" and "miscellaneous" expenses.

...

Florida Woman Sentenced For Embezzling Nearly $7 Million From Health Concern

From the Miami Herald on 6.12.13:

The community knew Kathryn Abbate as the leader of a Miami Beach-based clinic that provides vital healthcare to the poor and uninsured.

Secretly, her attorney and prosecutors say she was a gambler, drug addict and thief, raiding almost $7 million from the Miami Beach Community Health Center to support her habits.

For that, a federal judge on Wednesday sentenced Abbate to 42 months in prison -- but not before her attorney Bruce Lyons spun a tale of a deeply troubled woman.
    
He called it a “tale of two Kathryns.”

According to Lyons: There were long nights playing slots at the Seminole Hard Rock Hotel and Casino. Bundles of cash for unnamed politicians -- some of it surreptitiously left under a raincoat. Secret payments to settle sexual harassment allegations against a clinic employee. Another $50,000 went to someone’s wedding.

“I accept the responsibility for my conduct,” Abbate told Judge Marcia Cooke, “because I am responsible.”

She added: “I am 64-years-old. Not in the greatest of health. And I am petrified...I’m just praying that you’ll consider my lifetime of service.”

Lyons said his client didn’t live a lavish lifestyle, but she stole to secretly feed her addictions. ... The ill-gotten money flowed from unearned leave time paid out to Abbate, as well as 800 checks she paid to herself from 2008 until she was caught in 2012, according to prosecutors. She claimed the money was for “community development,” and despite offering no back up documentation, the expenses passed the examination of auditors year after year.

The health center has sued the companies responsible for looking over the center’s books, and three people quit or were fired after news broke of Abbate’s embezzlement -- which the center made public by contacting The Miami Herald.  ... Abbate pled guilty in March and faced up to 10 years in prison. She received a lighter sentence in exchange for cooperating with authorities.  ...

Read more here: http://www.miamiherald.com/2013/06/12/3447875/former-miami-beach-health-clinic.html#storylink=cpy

Read more here: http://www.miamiherald.com/2013/06/12/3447875/former-miami-beach-health-clinic.html#storylink=cpy

Read more here: http://www.miamiherald.com/2013/06/12/3447875/former-miami-beach-health-clinic.html#storylink=cpy

California Woman Sentenced For Embezzling Some $1.2 Million From Farming Concern

From the Fresno Bee on 6/12/13:

A 53-year-old Corcoran woman was sentenced to 6 years and 8 months in state prison Tuesday after she was convicted of embezzling $1.2 million from a farm company, the Tulare County District Attorney's Office said.

Lisa Chambers Trujillo, who was a secretary for a farming company from 2007 to 2012, wrote checks to herself from the business' bank account and the owner's personal account. Trujillo pleaded guilty on May 8 to felony grand theft and felony elder abuse.

Read more here: http://www.fresnobee.com/2013/06/12/3340494/corcoran-woman-gets-prison-for.html#storylink=cpy

Former Virginia Restauranteur Pleads Guilty To Embezzling Some $200K From 2 Bookkeeping Clients

From the Daily Progress on 6.11.13:

About three years after abruptly closing his Belmont eatery and fleeing the Charlottesville area, former restaurateur James Baldi has pleaded guilty to embezzling about $200,000 from two Albemarle County bookkeeping clients.

 

Baldi, 49, entered into an agreement Tuesday with county prosecutors that calls for him to plead guilty to five felony embezzlement charges: four in Albemarle and one in Charlottesville, which he is scheduled to appear in court for next month.

 

...

 

 

"[Baldi] is very anxious to make restitution and set things right," Goodman said.

 

Baldi still owes about $155,000 to Wood Grill Buffet's parent company and $23,700 to Duraclean, according to court records.

 

Baldi's alleged crimes stretch back to 2008, nearly a year and a half before a "closed for vacation" sign went up on the former Bel Rio restaurant and he disappeared. He was not indicted on the first of those charges until about 5 months after he left the area, according to court records.

 

His company, Bel Rio LLC, was dissolved in December 2010 on the same day a Charlottesville circuit judge awarded his former restaurant partner, Gareth Weldon, $45,900 in damages and court costs.

 

Weldon sued Baldi for breaching his fiduciary duty and conversion, or, making unilateral decisions in a way that deprived Weldon of his stake in their shared property, according to court records.

 

...

Kansas Woman Sentenced For Not Paying Taxes On Nearly $2 Million In Funds She Embezzled

From the US DOJ:

...

Teresa Joyce Moore, 65, Kansas City, Mo., was sentenced to 33 months in federal prison. She pleaded guilty to one count of filing false income tax returns. In her plea, she admitted the crime occurred while she was working for Big W of Kansas City, Kan., a family run business specializing in manufacturing expandable polystyrene molding, processing and cutting equipment. She was a bookkeeper and officer manager with duties that included invoicing, tracking payroll and general bookkeeping.

In late 2007, the owners of Big W realized that Moore had defrauded the company. She created false invoices from legitimate vendors and prepared checks payable to the vendors. Then she created checks for the same amount payable to herself or her credit card company. When the checks with the forged signature cleared the bank and was returned to Big W., Moore hid them and put the checks payable to the legitimate vendor in Big W’s records.

Moore used embezzled funds to purchase homes, furniture, appliances and other items. On her 2006 federal tax return she reported income of $31,990. In fact, she had received income of more than $451,000 through her embezzlement scheme. On her 2007 federal tax return, she reported an income of $30,881. She did not report more than $507,000 she received from her embezzlement in 2007. Moore embezzled a total of nearly $2 million while working for Big W.

...

Tennessee Man Charged With Embezzling Nearly $100K From Equipment Company

From the Kingsport Times-News on 6/10/13:

 Kingsport man contracted to sell Snap-On equipment has been arrested after allegedly failing to compensate the company for nearly $100,000 in merchandise.

Kevin Scott Hamilton, 41, of 5110 Springview St., was charged Wednesday with felony embezzlement and theft over $60,000. According to police and court records Hamilton is the owner of Hamilton Equipment Solutions, LLC, located at 116 Regional Park Drive.

...

The Snap-On representative claimed Hamilton sold the items to multiple third parties, but failed to compensate Snap-On for the merchandise. Kingsport Police Det. Monica Swayze says the company has had multiple correspondences with Hamilton regarding the outstanding balance — tallied at $93,199.81 — but had been unable to collect the money.
...