Deborah Williamson Pleads Not Guilty to Embezzling from Grocery Employer

The Office of the United States Attorney for the District of Vermont announced that Deborah Williamson, 36, a former resident of Wheelock who now lives in Florida, pleaded not guilty yesterday in United States District Court in Burlington to a charge that she embezzled about $70,000 from her ex-employer. U.S. Magistrate Judge John M. Conroy released Williamson on conditions pending trial, which has not been scheduled.
On March 20, 2014, a federal grand jury in Burlington returned a one-count indictment accusing Williamson of mail fraud. According to the indictment, Williamson was employed as the manager of White Market, a grocery store in Lyndonville. Her duties included regularly cashing checks drawn against the company’s local bank account to obtain one dollar bills and coins for the cashier’s cash registers. The indictment alleges that between 2010 and 2012, Williamson stole nearly $70,000 in cash from the store’s safe. She allegedly tried to cover up these thefts by not recording or underreporting the amount of cash and coins received from the bank in the store’s computerized accounting system.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until she is proven guilty.
If convicted, Williamson faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Lyndonville Police Department and the Federal Bureau of Investigation.
Williamson is represented by Brooks McArthur. The prosecutor is Assistant U.S. Attorney Gregory Waples.

Southern Oregon Couple Sentenced to Federal Prison on Fraud and Tax Charges

MEDFORD, OR—Kenneth Johnson, 62, and Diana Arredondo, 56, both of Central Point, Oregon, were sentenced to federal prison based on an embezzlement and tax fraud scheme relating to the operation of a local hotel. Johnson was a partner in the Super 8 Hotel in Central Point, Oregon, since it opened in October 2005. He was in charge of the hotel’s daily operations and reported the hotel’s revenue to his partners in Montana. Johnson hired his girlfriend, Arredondo, as the assistant hotel manager. They operated the hotel from October 2005 through 2011. Johnson engaged in a scheme to defraud his hotel partners by providing them false information regarding the amount of cash collected by the hotel and diverting some of the funds for his and Arredondo’s use. Over a period of time, Johnson diverted a total of about $500,000 and shared some of the tainted funds with Arredondo. In addition, both defendants filed fraudulent income tax returns, failing to report the money embezzled from the hotel. Based on a plea agreement entered into with the government, Johnson pleaded guilty to tax fraud and wire fraud, and Aredondo pleaded guilty to tax fraud.
On Monday, March 31, 2014, Senior U.S. District Judge Owen M. Panner sentenced Johnson to 33 months in federal prison and Arredondo to 10 months in prison. Johnson was ordered to pay $561,101.05 in restitution, and Arredondo was ordered to pay $16,229.00 in restitution.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Judith Harper.

Six Individuals Associated with the Newspaper and Mail Deliverers’ Union Arrested

A criminal complaint was unsealed today in federal court in the Eastern District of New York charging Benjamin Castellazzo, Jr.; Rocco Giangregorio; Glenn LaChance, Rocco Miraglia, also known as “Irving,” and Anthony Turzio, also known as “the Irish Guy,” with conspiring to defraud the Newspaper and Mail Deliverers’ Union (NMDU) and Hudson News in order to obtain a union card and employment at Hudson News for Castellazzo, Jr.
In addition, a three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Thomas Leonessa, also known as “Tommy Stacks,” with wire fraud, wire fraud conspiracy, and theft and embezzlement from employee benefit plans in an unrelated scheme. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York, on March 6, 2014, and relates to Leonessa’s alleged “no show” job as a delivery driver for the New York Post.
Castellazzo, Jr., Giangregorio, LaChance, Miraglia, Turzio, and Leonessa were arrested earlier today, and their initial appearances are scheduled for this afternoon before United States Magistrate Judge Robert M. Levy at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (FBI), New York Field Office.
As alleged in the complaint, the NMDU is an independent union that represents approximately 1,500 employees involved in the newspaper industry in New York, New Jersey, and Connecticut. NMDU members deliver newspapers for the New York Times, The Wall Street Journal, the New York Daily News, the New York Post, and El Diario. Hudson News, which also employs members of the NMDU, is a retail chain of newsstands mainly located in major transportation hubs, including airports and train stations.
Between June 2009 and October 2009, Miraglia, who was a foreman at the New York Daily News—as well as an alleged associate of the Colombo organized crime family of La Cosa Nostra and the son of a deceased soldier in the Colombo family—conspired with officials of the NMDU and with Turzio, who was an employee of El Diario, to get an NMDU union card for Castellazzo, Jr. and place him in a job at Hudson News. Castellazzo, Jr. is the son of Benjamin Castellazzo, the alleged underboss of the Colombo family. Giangregorio and LaChance, who were business agents for the NMDU, also are charged with participating in this scheme.
As alleged in the indictment, Leonessa was employed by the New York Post to deliver newspapers by truck from a New York Post warehouse in the Bronx, New York, to New Jersey. He was also a member of the NMDU, which maintained offices, including offices for its welfare and pension funds, in Queens, New York. From about December 2010 to about September 2011, Leonessa had a “no show” job at the New York Post, that is, a job for which he was paid wages and benefits but which he did not perform. When Leonessa did not complete his required deliveries, he was nevertheless, based on his fraudulent representations, paid wages by the New York Post and accorded benefits from employee pension and welfare funds managed by the NMDU.
“Today’s arrests indicate that the NMDU and the newspaper delivery industry are, sadly, still subject to the influence of organized crime,” stated United States Attorney Lynch. “We cannot tolerate corruption in that industry, which is relied on by newspaper readers throughout New York City and beyond. We will prosecute anyone who seeks to obtain employment—or to maintain “no show” employment—in that industry by trading on the power of organized crime. Such acts not only lead to ill-gotten gains, but they also displace innocent, hard-working union members and would-be union members from jobs they have rightfully earned. We thank our partners at the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, for their tremendous efforts to identify and root out these corrupt practices.” Ms. Lynch also extended her grateful appreciation to the New York City Police Department, the New York County District Attorney’s Office, and Waterfront Commission of New York Harbor for their assistance.
“As alleged, a paycheck in exchange for a hard day’s work was a foreign concept to these defendants. Instead, they engaged in a scheme to defraud the NMDU and Hudson News for easy money and personal gain. The FBI, along with its law enforcement partners, will continue to pursue allegations of corruption and fraud all levels,” stated FBI Assistant Director in Charge Venizelos.
The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy at the federal courthouse in Brooklyn. The charges in the complaint and indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Elizabeth A. Geddes and Allon Lifshitz and by Trial Attorney Joseph Wheatley of the Department of Justice’s Organized Crime and Gangs Section.
Defendants:
Benjamin Castellazzo, Jr.
Age: 48
Manahawkin, New Jersey
Rocco Giangregorio
Age: 39
Dumont, New Jersey
Glenn LaChance
Age: 50
Oceanside, New York
Rocco Miraglia
Age: 43
Staten Island, New York
Anthony Turzio
Age: 78
New York, New York
Thomas Leonessa
Age: 52
High Bridge, New Jersey

Former City Employee Sentenced to 12 Months in Prison for Embezzling More Than $92,900 from the City of Cherryville

CHARLOTTE, NC—Former employee with the city of Cherryville Jennifer Neal Hoyle was sentenced to serve 12 months and a day in prison today for embezzling more than $92,900 in city funds, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In January 2013, Hoyle, 36, of Cherryville, pleaded guilty to three felony charges of program fraud, stemming from a joint federal and state investigation into misappropriated city funds.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Greg McLeod, Director of the State Bureau of Investigation (NC SBI), and Chief James W. Buie of the Gaston County Police Department join U.S. Attorney Tompkins in making today’s announcement.
U.S. District Judge Robert J. Conrad, Jr. presided over the sentencing and ordered Hoyle to serve three years of supervised release upon completion of her sentence and to pay $92,922.55 as restitution to the city.
According to filed court documents and court proceedings, Hoyle was a senior customer service representative/utility supervisor for the city of Cherryville, responsible for collecting and posting utility payments made by customers. Court records indicate that beginning in January 2008 through May 2011, Hoyle embezzled approximately $92,922 from the city of Cherryville by stealing some cash payments made by utilities customers paying their bills. Court records show that Hoyle took the customers’ cash payments, issued paper receipts, credited the customers’ accounts with the payment, and kept the cash. Then, using her supervisory override privileges, Hoyle deleted the transaction from the computer system. Court records also show that, in order to avoid any potential customer complaints, Hoyle created entries in the “extra charge” journal, in which she “wrote off” the cash amount the customers had paid, so that when bills were generated they would not include the embezzled amount. According to court records, Hoyle’s fraud was uncovered when a customer questioned the duplicate charges on her bill and brought in her paper receipt as proof of payment, after Hoyle had failed to convert the customer’s cash payment as a “write off” in the “extra charge” journal. Hoyle was terminated from her position in May 2012.
Hoyle was ordered to self-report to the Federal Bureau of Prisons to begin serving her sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation into Hoyle was handled by the FBI, SBI, and the Gaston County Police Department. The prosecution is handled by Michael Savage, of the U.S. Attorney’s Office in Charlotte.

Pamela Smith Pleads Guilty to Woodstock Inn Embezzlement

The Office of the United States Attorney for the District of Vermont announced that Pamela Smith, 57, of Barnard, pleaded guilty on March 12, 2014, in United States District Court in Burlington to a charge of wire fraud. U.S. District Judge William K. Sessions, III released Smith on conditions pending sentencing, which has been set for July 8 in Brattleboro.
On February 18, 2014, the United States Attorney filed a one-count information charging Smith with wire fraud. According to the information, between approximately 2007 and early 2013, Smith was employed by the Shire Riverview Motel in Woodstock, Vermont. Smith worked part-time as a clerk and also performed bookkeeping services for the inn. Beginning no later than 2009 and continuing until early 2013, Smith embezzled approximately $200,000 from Shire Riverview. She did this by writing unauthorized checks to herself from the inn’s checking account and then depositing the checks into her personal bank account; by stealing cash payments made by motel guests; and by using Shire Riverview funds to pay her personal expenses, including credit card, gasoline, fuel oil, and telephone and Internet service bills. According to the information, Smith used about $40,000 in stolen funds to pay for improvements to a house in Barnard.
As part of her plea, Smith agreed to forfeit to the United States about $40,000 in improvements to the Barnard house and to pay a forfeiture money judgment in the full amount of the loss.
Smith faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the Woodstock Police Department and the Federal Bureau of Investigation.
Smith is represented by George Ostler. The prosecutor is Assistant U.S. Attorney Gregory Waples.

Talent Agent Pleads Guilty in Manhattan Federal Court to Stealing More Than Half-a-Million Dollars from Actor Clients

Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI), announced that Peter Strain, a talent agent for film, television, and Broadway actors, pled guilty today in Manhattan federal court to stealing more than half-a-million dollars from his clients, which he used to purchase personal luxury retail goods and artwork, among other things. Strain was originally charged in November 2013, and he pled guilty today before United States District Judge George B. Daniels.
Manhattan U.S. Attorney Preet Bharara said, “Peter Strain repeatedly lied to his clients about the payments for their acting work so that he could use the money for himself, as it suited his needs—including for personal luxury retail items. With today’s plea, Strain has admitted to his fraud, and he will be punished for his conduct.”
New York FBI Assistant Director in Charge George Venizelos said, “Peter Strain was making the old saying of robbing one person to pay someone else come to life. In this case, he was robbing his clients and then paying himself, lying all along the way to try to cover his tracks. Embezzling more than a half-a-million dollars from clients is a serious offense. The FBI will continue to investigate and bring those to justice who seek to do business in such a deceitful way.”
According to the allegations contained in a superseding information filed in Manhattan federal court and statements made in public court proceedings:
Through his talent agency Peter Strain & Associates (PSA), Strain represented television, film, and stage actors. As a talent agent, Strain received funds in trust for his clients for their acting work and was required to remit those funds to his clients, less his commission, which was typically 10 percent. However, between approximately 2011 and 2013, Strain diverted money he received on behalf of three clients and used it to, among other things, pay for personal luxury retail goods and artwork. In order to conceal his theft and ensure that his clients allowed him to continue receiving money on their behalf, Strain repeatedly lied to his clients about why he had failed to timely remit their money.
Between July 2011 and December 2011, Strain received more than $1.4 million in his trust account on behalf of a particular client (Client-1), an actor who earned that money for work on a currently broadcast television series. However, Strain failed to remit approximately $500,000 of this money to Client-1 and diverted it for his own use. In order to conceal his theft from Client-1, when Strain and Client-1 discussed the missing payments by telephone, Strain asked Client-1 if he could delay making the payments because, according to Strain, he was short on funds as a result of his partners at PSA embezzling money from the firm. Strain further claimed that he had recently won a lawsuit against his partners related to the supposed embezzlement and that he was waiting to receive settlement payments from his partners.
As Strain knew, his statements to Client-1 regarding the lawsuit were false. In truth, Strain’s partners had filed a lawsuit accusing Strain of embezzling funds from PSA, and Strain agreed to settle the lawsuit by paying his partners more than $250,000 for their shares in PSA. Moreover, in order to make a payment required under the settlement, and rather than use his own money, Strain withdrew $30,000 from an account held in trust for his clients (the trust account).
Ultimately, during 2012, Strain repaid Client-1 by stealing money from a different client, Client-2, an actor who has appeared in several television shows, including a currently broadcast television series. Strain then lied to Client-2 in order to conceal his theft. Among other things, Strain falsely told Client-2 that Strain had recently hired a new business management team and that the new team must have misplaced Client-2’s money. In truth and in fact, Strain had used Client-2’s money to repay the money he had stolen from Client-1. Strain never fully repaid the money he took from Client-2 and still owes Client-2 in excess of $350,000.
In July 2012, Strain failed to timely remit over $200,000 in additional payments to Client-1 for Client-1’s television acting work. In an e-mail to Client-1 asking for additional time to remit the money, Strain repeated his false claim that he had “won” the lawsuit with his partners and was waiting for his partners to pay him. Strain further falsely claimed that he had Client-1’s money in his possession but that he was restricted from accessing the money due to court orders. Contrary to his representations to Client-1, and as Strain well knew, Strain had not “won” the lawsuit, was not restricted from accessing the funds owed to Client-1, and did not have sufficient funds in the trust account to pay Client-1. In fact, in the same month that Strain claimed he was unable to access Client-1’s money, Strain withdrew more than $80,000 from the trust account, leaving the account overdrawn by more than $9,000.
Between November 2012 and February 2013, Strain also stole tens of thousands of dollars from another client (Client-3), an actor who has appeared in several television shows, including a currently broadcasted television series. To cover up his theft, Strain offered several false excuses to Client-3 for why he had failed to remit Client-3’s money. For example, in November 2012, Strain falsely claimed that Client-3’s payments had been lost in the mail. Strain also later falsely told Client-3 that the delays in remitting Client-3’s money were caused by a lawsuit, but that a confidentiality clause prevented Strain from discussing the details.
Strain used the money he stole from his clients to, among other things, pay operating expenses of PSA and to pay for personal luxury retail goods and artwork, some of which he purchased in New York using client money from California bank accounts. Between July 2011 and August 2012, using his clients’ money, Strain bought more than $161,000 in jewelry, more than $310,000 in artwork, and more than $57,000 at luxury goods retailers.

* * *

Strain, 64, of Studio City, California, pled guilty to one count of interstate transportation of stolen property, which carries a maximum term of 10 years in prison. He is scheduled to be sentenced before U.S. District Judge George B. Daniels on April 30, 2014, at 10:00 a.m. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys James Pastore, Jr. and Jason Hernandez are in charge of the prosecution.

Huntington Woman Sentenced to Federal Prison for Stealing from Homeless Aid Program

HUNTINGTON, WV—A Huntington woman was sentenced today to a year and a day in federal prison for stealing more than $20,000 from a program that assists the homeless, United States Attorney Booth Goodwin announced. Patricia Howard, 54, embezzled the money from the Huntington Housing Authority’s Shelter Care Plus program in 2011 and 2012 while she was an employee of the Authority.
The Shelter Care Plus program receives federal funds to provide housing assistance for homeless people suffering from mental illness, chronic addiction, and AIDS. As an employee of the Huntington Housing Authority, Howard helped handle the Shelter Care Plus program’s finances. Her position enabled her to secretly make transfers of program funds to her personal bank account by disguising them as payments to obtain housing for the homeless. Howard’s scheme netted a total of $23,731, which she was ordered to repay as part of her sentence. Howard admitted her crime to federal law enforcement authorities after being caught.
In an unrelated case, Howard was recently convicted in state court for fraudulently using an access device. She is serving a one- to three-year state sentence for that conviction. Howard will begin serving the federal sentence imposed today after she finishes her time in state custody.
The federal Department of Housing and Urban Development’s Office of Inspector General and the Federal Bureau of Investigation conducted the investigation, assisted by the Huntington Police Department. Assistant United States Attorney Erik S. Goes handled the prosecution. Chief United States District Judge Robert C. Chambers presided over the case and imposed today’s sentence.

Jody Farnham Pleads Guilty to Embezzling from the University of Vermont

The Office of the United States Attorney for the District of Vermont announced that Jody Farnham, 55, of Burlington, pleaded guilty on January 28, 2014, in United States District Court in Rutland to a charge of federal program embezzlement. Chief Judge Christina Reiss released Farnham on conditions pending her sentencing, which has been set for June 16.
According to the information to which Farnham pled guilty, Farnham had been employed for a number of years by the University of Vermont (UVM), College of Agriculture and Life Sciences. Farnham was an office support specialist for the Vermont Institute for Artisan Cheese, which provided educational, research, and technical consulting services to artisan cheese makers. VIAC offered courses and workshops in cheesemaking, and enrollees paid tuition to UVM to attend the programs. According to the information, Farnham began embezzling money from UVM in about 2006, and, before the thefts were discovered in late 2012, she stole not less than $185,000. Farnham embezzled much of the money by altering checks given to her by VIAC enrollees. Farnham changed the checks, which were made out to VIAC, to make her a co-payee. She then deposited the forged checks into her personal bank account. Farnham also stole some cash tuition payments and misused UVM credit cards to make personal purchases. During the time period of the embezzlement, UVM received substantial amounts of federal funding.
As part of her plea agreement, Farnham consented to the entry of a $185,000 forfeiture money judgment.
Farnham faces up to 10 years of imprisonment and a fine of up to $250,000. The actual sentence will be determined with reference to federal sentencing guidelines.
This case was investigated by the University of Vermont Police Department and the Federal Bureau of Investigation.

Former Treasurer of Mayetta Fire District Pleads Guilty to Embezzlement

TOPEKA, KS—The former treasurer of the Mayetta Rural Fire District #1 pleaded guilty Monday to embezzling from the district, U.S. Attorney Barry Grissom said. In his plea, the defendant agreed to an order that he pay $427,042 in restitution.
Richard P. Bontrager, 67, Holton, Kansas, pleaded guilty to one count of embezzlement. In his plea, he admitted that in 2008, he began embezzling from the fire district by issuing checks with the forged signatures of members of the board of the fire district. The checks were made payable to R&S Services, a fictitious entity Bontrager created so he could deposit the fraudulent checks into his own account at Denison State Bank. From 2008 to 2012, he made approximately $427,042 in unauthorized transfers from the fire district’s accounts.
In addition, without the knowledge of the board of the fire district, he falsified loan documents to obligate the fire district to monthly lease payments on a Polaris Ranger UTV and a 1988 Chevrolet 1-ton brush truck. He created false board minutes to make it appear the board had approved the lease payments.
Sentencing is set for April 14. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Jackson County Sheriff’s Office and the FBI investigated. Assistant U.S. Attorney Richard Hathaway is prosecuting.

Georgia banker who allegedly embezzled $17 million captured after years on lam

A south Georgia banker accused of embezzling millions by defrauding scores of investors was captured Tuesday after one and a half years on the run, authorities said.

The FBI indicated online that 47-year-old Aubrey "Lee" Price -- whom it characterized as an investment adviser and former minister -- had been captured.

That agency website didn't provide further details, including how Price was detained or what he has been doing since June 2012.

Yet a Glynn County, Georgia, sheriff's office website showed that he was booked Tuesday and is being "held for federal authorities on a charge of giving a false name, address or birth date to a law enforcement officer." Officer Kay Jones said that Price was being held for federal marshals.

His capture ends a law enforcement saga that started in the town of Ailey, a community of about 430 people, and stretched to include parts of Florida, Latin America and the vast waters that separate them.

In late 2010, Price was being celebrated by his peers and written up in newspaper articles after a company that he controlled bought a controlling portion of the troubled Montgomery Bank & Trust in Ailey, which is located some 170 miles southeast of Atlanta.

He was supposed to invest the bank's capital. Instead, prosecutors say, Price used a New York-based "clearing firm" -- a dummy company set up to hide money -- to cover up fraudulent wire transfers and investments.

A complaint filed in federal court on July 2, 2012, claimed that Price and others "raised approximately $40 million from approximately 115 investors," mostly in Georgia and Florida, beginning in 2009, then committed fraud at the expense of those investors.

"The complaint alleges that, instead of investing the money as promised, Price fraudulently wired the bank's funds to accounts that he personally controlled at other financial institutions and provided bank management with altered documents to make it appear as if he had invested the bank's money in (U.S.) Treasury securities," the U.S. attorney's office for eastern New York said then.

In sum, the complaint alleges that Price hid the embezzlement by falsely stating that about $17 million had been deposited in the bank's name at a New York financial services firm.

By the time these charges came out, Price had been missing for several weeks, having told friends he had lost "a large sum of money through his trading activities," according to the complaint.

In the letter he'd purportedly written to acquaintances and business associates that June, Price indicated that he planned to kill himself by "jumping off a ferry boat" off Florida's coast, the complaint stated.

He was spotted -- alive -- in Key West, Florida, in the middle of that month, and the U.S. Coast Guard's subsequent search for his body found nothing.

By then, authorities hinted they believed Price was on the lam. He owns properties in Venezuela and Guatemala, and the FBI's wanted poster for him indicated that he also has a 17-foot boat. The federal agency offered a reward of up to $20,000 for information leading to his arrest; it wasn't immediately clear if anyone will recoup that reward, nor was it known how Price was taken into custody.

A federal grand jury in New York indicted him on wire fraud and securities fraud charges earlier this year. A conviction on the wire fraud charge carries a maximum prison sentence of 30 years, with a 25-year maximum for the other charge.

The bank Price took over -- which had been in operation for nearly 90 years -- was closed in summer 2012 by the state of Georgia, with the U.S. Federal Deposit Insurance Corporation named as its receiver.

Price's family members have been quiet publicly since news of the charges came out. And it was not immediately clear if he has legal representation following his detention.

Long-Time Friends Admit Embezzling from Tax Consulting Business

DALLAS—Lamonica Phillips and Pamela Gail Willis, aka Pamela Gayle Knight, both of Dallas, appeared today before U.S. Magistrate Judge Renee Harris Toliver, and each pleaded guilty to a federal felony offense stemming from their embezzlement of funds from Phillips’ former employer, announced US. Attorney Sarah R. Saldaña of the Northern District of Texas.
Specifically, Phillips and Willis, both 44, each pleaded guilty to one count of conspiracy to commit mail fraud. Each faces a maximum statutory penalty of five years in prison, a $250,000 fine, and restitution. A sentencing date was not set.
In a related case, Audrey Starr, 51, of Oklahoma City, is charged with one count of conspiracy to commit mail fraud and four substantive counts of mail fraud. If convicted the conspiracy count carries a maximum statutory penalty of five years in federal prison and each of the substantive mail fraud counts carries a maximum statutory penalty of 20 years in prison. Each count also carries a maximum statutory penalty of $250,000.
According to documents filed in the case, Phillips and Willis devised and carried out a scheme to embezzle money from Phillips’ employer, Industry Consulting Group (ICG). Starr allegedly became a conspirator in the scheme through knowingly receiving and using stolen funds.
ICG is a tax consulting business based in Dallas that focuses on tax valuation of properties and the maintenance of tax portfolios. As part of their business ICG, on behalf of their clients, pays taxes on home mortgages and provides valuations of properties in order to contest tax appraisals.
As part of her duties, Phillips had access to ICG’s financial software, could prepare checks on behalf of ICG, and was responsible for cashing and mailing checks to ICG’s customers. Phillips began the scheme to defraud ICG in March 2012, following a conversation with her good friend, Willis.

Former Employee of Allstate Electrical to Serve Eight Months in Prison for Embezzlement and Tax Fraud

OKLAHOMA CITY—Renea I. Windham, of Oklahoma City, was sentenced today to eight months in federal prison for making a forged security and filing a false tax return in connection with her embezzlement of more than $140,000 from a metro electrical contracting business, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Windham is the former bookkeeper at Allstate Electrical Contractors Inc. in Oklahoma City. According to the information filed in the case, Windham made and possessed a forged check from Allstate payable to her for $4,380.08. At the plea hearing on September 11, 2013, Windham admitted that she prepared that check to herself without Allstate’s permission and caused the company’s accounting records to show the check was instead issued to a legitimate electrical company. Windham admitted that she embezzled more than $140,000 from Allstate from 2010 to 2013. The information also alleged that Windham submitted a false federal income tax return for tax year 2012 by failing to report substantial income. At the plea hearing, Windham admitted that she did not claim more than $60,000 of embezzled income from Allstate on her 2012 federal income tax return.
Today, United States District Judge Robin J. Cauthron sentenced Windham to eight months of imprisonment, followed by three years of supervised release. Windham was ordered to pay restitution to Allstate and its insurance company in the amount of $143,057.10. She was also ordered to pay $26,682.00 in restitution to the Internal Revenue Service for federal income tax due from her unreported embezzlement income.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Chris M. Stephens.

Bridgeport Bank Manager Pleads Guilty to Embezzlement

SACRAMENTO, CA—On October 9, 2013, Roxanna Foley, 52, of Bridgeport, pleaded guilty to one count of embezzlement by a bank employee, United States Attorney Benjamin B. Wagner announced.
According to court documents, Foley worked at Eastern Sierra Community Bank (ECSB). Starting in November 2011, bank officials noticed discrepancies with the Bridgeport branch of ESCB. On March 19, 2012, managers from the bank made an unannounced visit to that branch to investigate a suspicious $90,000 transaction. After a review of the bank’s records, officials identified $90,000 in misplaced funds, as well as $6,000 missing from Foley’s teller drawer.
During the surprise inspection, Foley admitted to taking $6,000 from her cash drawer, as well as an additional $312,000 from the bank. A later review of the Bishop ECSB’s accounts uncovered $322,000 in missing funds, as well as multiple electronic “covering transactions”—that is, transactions moving money between accounts—made by Foley. Officials also learned that Foley had also been circumventing normal banking procedures at ECSB, including single-handedly taking over all counting and auditing of ECSB accounts when dual-counting procedures were required.
This case is the product of an investigation by the Mono County Sheriff’s Department, the Mono County District Attorney’s Office, and the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon is prosecuting the case.
Foley is scheduled to be sentenced by Unites States District Judge Kimberly J. Mueller on January 29, 2104, at 9:00 a.m. She faces a maximum sentence of 30 years in prison, a $1 million fine, and a five-year term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Fresno Woman Indicted for Embezzling More Than $580,000 from Employer

FRESNO, CA—Shelley Corkins, aka Shelley Kimbrell, 37, of Fresno, was charged today by a federal grand jury in a 44-count indictment for embezzling money from the law firm that formerly employed her, United States Attorney Benjamin B. Wagner announced.
According to the indictment, Corkins formerly was employed by a Fresno-based law firm as a bookkeeper and accounting department supervisor. Between January 2008 and May 2012, Corkins abused her access and authority to manage the law firm’s finances and embezzled the law firm’s money for her own personal use. Corkins used her company credit card to make personal purchases at various retail outlets, including clothing and toy stores, electronically transferred funds from the law firm’s bank accounts to her own, and embezzled the law firm’s petty cash. Altogether, Corkins embezzled more than $580,000 of the law firm’s money.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Christopher Baker is prosecuting the case.
The maximum statutory penalty for each of the 44 counts of wire fraud is 20 years in prison and a $250,000 fine. The actual sentence, if convicted, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Former Employee Sentenced to Federal Prison for Stealing from Bank

MCALLEN, TX—Armando Ruben Aleman, 28, of Weslaco, has been ordered to federal prison following his conviction of one count of embezzlement, announced United States Attorney Kenneth Magidson. Aleman pleaded guilty March 27, 2013, admitting he stole more than $190,000 from the bank account of a deceased customer of BBVA Compass Bank in Mission while Aleman was an employee at that bank.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty plea, sentenced Aleman to 12 months in federal prison without parole, to be followed by two years of supervised release. At the hearing, testimony was presented by the heir to the deceased bank customer, who was entitled to receive the money in the account from which Aleman stole the funds. The heir told the court that while he harbored no resentment toward Aleman, the defendant had brought the consequences of his crime upon himself through his actions. Judge Alvarez noted that while the bank had paid the heir the money owed to him, the bank had not been able to recoup all the lost amount from Aleman. Therefore, the court ordered Aleman to pay the remaining, unrecovered $61,772 in restitution to the bank.
In determining the sentence, the court considered that Aleman had used another bank customer’s identifying information to open a bank account without authorization in order to hide the stolen funds. The court noted that the customer, through no fault of his own, was experiencing difficulties opening bank accounts because of the account Aleman had fraudulently opened using that customer’s name.
At the time of the guilty plea, Aleman admitted that during more than half of last year, while he was employed at BBVA Compass Bank, he emptied a deceased client’s account before the executor of the client’s will could retrieve the funds.
Aleman withdrew cash and forged cashier’s checks in the deceased client’s name in order to steal the funds from his account. Then, Aleman transferred the funds into an account he opened at Chase Bank using a stolen identity from another person. Aleman managed to spend and transfer to himself more than $70,000 from the fraudulently opened Chase account before his scheme was discovered and the bank froze the account.
Aleman was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the Secret Service with the assistance of the FBI. Assistant U.S. Attorney Christopher Sully prosecuted the case.

Morehouse Parish Woman Sentenced to 12 Months in Prison for Stealing from Bank Customers

MONROE, LA—United States Attorney Stephanie A. Finley announced that Vickie Lenoir, 48, of Mer Rouge, Louisiana, was sentenced on October 7, 2013, by U.S. District Court Judge Robert G. James to 12 months in prison and five years of supervised release for embezzling money from customers at the Capital One bank where she worked. She was also ordered to pay $95,673 in restitution. Lenoir pleaded guilty May 14, 2013.
According to evidence presented in court, from December 2008 until October 2012, Lenoir admitted to embezzling more than $95,673 from seven customer accounts at a Bastrop, Louisiana Capital One Bank where she was employed. The missing money was reported after customers began noticing unusual activity in their accounts.
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney D. Cytheria Jernigan prosecuted the case.

Former Employee of Allstate Electrical Pleads Guilty to Embezzlement and Tax Fraud

OKLAHOMA CITY—Renea I. Windham, of Oklahoma City, pled guilty in federal court today to making a forged security and filing a false tax return in connection with her embezzlement of more than $140,000 from a metro electrical contracting business, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Windham is the former bookkeeper at Allstate Electrical Contractors Inc. in Oklahoma City. According to the information filed in the case, Windham made and possessed a forged check from Allstate payable to her for $4,380.08. At today’s plea hearing, Windham admitted that she prepared that check to herself without Allstate’s permission and caused the company’s accounting records to show the check was instead issued to a legitimate electrical company. Windham also admitted that she embezzled more than $140,000 from Allstate from 2010 to 2013. The information also alleged that Windham submitted a false federal income tax return for tax year 2012 by failing to report substantial income. At today’s plea hearing, Windham admitted that she did not claim more than $60,000 of embezzled income from Allstate on her 2012 federal income tax return.
At sentencing, Windham faces up to 10 years in federal prison and a fine up to $250,000 on the forged security charge and up to three years in federal prison and a fine up to $250,000 on the tax charge. She agreed in her plea agreement to pay restitution to Allstate in the amount of $143,057.10. She also agreed to pay restitution to the Internal Revenue Service in the amount of her federal income tax due, to be determined by the court. United States District Judge Robin J. Cauthron will sentence Windham on December 11, 2013.
These charges are the result of an investigation conducted by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the United States Secret Service. The case is being prosecuted by Assistant U.S. Attorney Chris M. Stephens.

Former Cox Employees Charged with Embezzlement

ATLANTA—Joysha Flucker has been arraigned on charges in an indictment that a federal grand jury returned on May 21, 2013, for allegedly stealing over $900,000 from Cox Communications.
“Those who shamelessly steal from their employer should expect to be held accountable,” said United States Attorney Sally Quillian Yates. “Companies must be able to trust their employees, especially when those employees are entrusted with handling money. The charges against these defendants reflect that they violated the law as well as their employer’s confidence.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated, “The federal indictments of these two former Cox employees represent the FBI’s commitment to partner with and provide assistance to the corporate sector. Those individuals who engage in such widespread and high-dollar thefts run the very real risk of becoming targets in a federal investigation.”
According to United States Attorney Yates, the charges, and other information presented in court: Joysha Flucker, 36, of Decatur, Georgia, and Sakia Allen, 38, of Jonesboro, Georgia, previously worked for Cox Communications, where they had access to the company’s electronic invoicing system that tracked the company’s payments to various third parties. Flucker and Allen manipulated the electronic invoicing system so that Cox Communications would issue duplicate payments to the third parties. However, the duplicate payments were directed into bank accounts under the control of the defendants. As a result of the defendants’ actions, Cox Communications suffered losses of at least $943,865.46.
Flucker was arraigned before United States Magistrate Judge Russell G. Vineyard today on the charges and was detained. Allen previously entered a plea of guilty to one count of wire fraud on July 25, 2013, before United States District Judge William S. Duffey, Jr.
The indictment charges the defendants with multiple counts of wire fraud and one count of conspiracy. Each wire fraud count carries a maximum sentence of 20 years in prison and the conspiracy count carries a maximum sentence of five years in prison. Each count also carries a fine of up to $250,000. In determining the actual sentence, the court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The United States is also seeking the forfeiture of all funds derived from this scheme. The United States previously forfeited a house and luxury automobiles as proceeds of the alleged offense.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation with the assistance of the Sandy Springs Police Department.
Assistant United States Attorneys Mary F. Kruger and Thomas J. Krepp are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.Pressemails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.

Health Care Nurse Sentenced

Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Melody Milton, 38, of Albany, Georgia, was sentenced on August 22, 2013, following her guilty pleas on August 23, 2012, to embezzlement of government property and aggravated identity theft. She received a sentence of 70 months’ imprisonment and was ordered to pay $110,431 in restitution to the Internal Revenue Service.
Ms. Milton, formerly a home health care nurse employed by Phoebe Putney Home Health Care, admitted that she opened bank accounts in the name of “Quick Cash Check Cashing” at two Albany area banks for the purpose of facilitating the illegal scheme. Ms. Milton would fraudulently obtain Internal Revenue Service refund checks at a post office box she opened in order to receive these checks directly. The checks were in the names of other persons without their knowledge or consent, many of whom were her own patients, while she was employed at Phoebe Home Health Care. She would then negotiate the checks for her own use by depositing the third party checks into these bank accounts which were controlled by her. The total value of all the treasury checks is $282,428.00.
“While she should have been caring for her patients, Ms. Milton was stealing their identities and using them to steal from the U.S. Treasury. Identity theft is not a ‘victimless’ crime, and my office will continue to make the prosecution of these cases a priority. Ms. Milton will now have a new identity—she will be known as a federal inmate,” said United States Attorney Michael Moore.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Jim Crane.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2602.

Former Narcotics Task Force Officer Charged with Embezzling Seized Money

BIRMINGHAM—Federal prosecutors have charged the former commander of the West Alabama Narcotics Task Force with stealing at least $125,000 from suspected drug proceeds seized by the multi-agency task force, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein, Jr.
The U.S. Attorney’s Office late Thursday filed a one-count information in U.S. District Court charging Jeffrey Lynn Snyder, 55, of Carrollton, with the theft from a program that received more than $10,000 in federal benefits within a one-year period. The U.S. Attorney’s Office also filed a plea agreement with Snyder in which he agrees to enter a guilty plea to the charge. According to the plea agreement, Snyder embezzled the money between June 2010 and June 2012, when he left the task force.
“Most law enforcement officers serve their communities bravely and honorably each and every day,” Vance said. “Unfortunately, this defendant violated his oath, the law, and the public trust he had been granted. That cannot be tolerated. The public must be able to trust its law enforcement officers.”
“Mr. Snyder tarnished the badge he wore and violated the trust of the people of West Alabama,” Schwein said. “This case demonstrates our commitment to enforce the law and hold individuals accountable, regardless of rank, position, or status. Fortunately, this is an isolated incident, and we should recognize the efforts of law enforcement officers throughout the region who continue to risk their lives on a daily basis so that the public can be safe,” he said.
The West Alabama Narcotics Task Force is staffed with officers from the Tuscaloosa Police Department, Tuscaloosa County Sheriff’s Office, Northport Police Department, and University of Alabama Police Department. It is tasked to investigate all drug crimes in Tuscaloosa County.
Snyder was a 29-year member of the Tuscaloosa Police Department, retiring as a captain in December 2012. He was detailed to the narcotics task force in 1989 and became its commander in June 2002, according to his plea agreement.
Task force members periodically seized money suspected to be proceeds of illegal drug transactions and turned the money in to Snyder, who was responsible for depositing the money into bank accounts while condemnation proceedings were pursued through court, according to the plea agreement. Snyder was entrusted to receive the seized money, log it in task force ledger books, and deposit it in task force bank accounts.
Snyder began embezzling from the seized funds no later than June 2010. He executed his scheme “by pocketing some or all of the funds seized during various arrests and then failing to correctly account for those funds,” the plea agreement states.
The agreement between the government and Snyder is a “binding plea agreement” in which both sides agree to an 18-month prison sentence, but the court must still approve the agreement.
The FBI investigated the case, with assistance from the West Alabama Narcotics Task Force. Assistant U.S. Attorney Henry Cornelius is prosecuting the case.