Former College Summit Employee pleads guilty to making over $45,000 in unauthorized charges to corporate credit card

The U.S. Attorney for the District of Columbia recently announced that Joyce R. Williams, 40, of Largo, MD, formerly employed by College Summit’s National Headquarters, pleaded guilty to unauthorized charging of airplane tickets, hotel stays, meals, clothing, electronics, concert tickets, jewelry, fuel and bills to a corporate credit card.

See the full release here.

Former Georgetown University Employee Charged With Embezzling Over $300,000 From University

Kenneth Wainstein, U.S. Attorney for the District of Columbia, announced recently that a federal grand jury has indicted a former Georgetown University employee, Pedro Paulo dos Santos, on charges of defrauding the University and Riggs Bank of more than $300,000.

According to the indictment, dos Santos had worked from 1998 until March 2005 at Georgetown. In his most recent position as a director of Georgetown’s Brazilian Studies program, he became familiar with the paperwork and authorizations required for vendors to obtain compensation for their services. The indictment further alleges that between September 2001 to February 2005, dos Santos developed and engaged in a scheme by which he would cause to be written, signed and issued, checks to a fictitious lecturer purportedly for consulting services. Dos Santos created invoices in the name of a fictitious vendor for consulting and guest lecturing services purportedly performed on behalf of the Brazilian Studies Program. To further justify fraudulent payments from Georgetown, dos Santos completed forged expense vouchers that he submitted together with the fake invoices to the Georgetown accounts payable department. After processing these invoices and vouchers, the accounts payable department issued checks as payment for services purportedly performed on behalf of Georgetown. These checks were either picked up by dos Santos from the accounts payable department or sent via U.S. mail to an address dos Santos had designated on the vouchers. dos Santos gained control of the funds by depositing the Georgetown checks directly into one or more of his personal bank accounts. dos Santos also attempted to disguise the illegal source of the stolen money by having one or more individuals deposit some of the checks in other bank accounts. This individual or individuals subsequently withdrew the funds and disbursed these funds to dos Santos in the form of cash or checks.

Ultimately, the scheme allegedly netted dos Santos in excess of $310,000.

See the full release here.

Former Accounting Manager at Minnesota Restaurant Sentenced for Embezzlement

Jennifer Rosvold, a former accounting manager for Damon’s Restaurants, a Twin Cities restaurant chain, was sentenced recently to 24 months in prison for stealing from her employer, according to a press release from the U.S. Attorney for the District of Minnesota. Rosvold was also ordered to pay $425,920 in restitution to the owners of Damon’s Restaurants.

Rosvold began embezzling money from Damon’s Restaurants in March of 2002, and continued until the restaurant chain went out of business and ceased operations in March of 2005. Rosvold stole money by preparing and issuing checks payable to herself. She also forged the signature of other employees on some of the checks. After obtaining the fraudulent checks, Rosvold deposited them into her personal bank accounts, and, on other occasions, simply cashed the checks. She used the stolen funds for gambling, mortgage payments, cars, and household expenses.

See full release here.

Accountant Gets Jail Time for Embezzling Funds from Clients

United States Attorney Mary Beth Buchanan of the Western District of Pennsylvania announced recently that Walter M. Tymoczko, a resident of Pittsburgh, had been sentenced to two years incarceration and ordered to pay $255,424.60 in restitution on his conviction of uttering and possessing a forged security of an organization.

According to information presented to the court, during the period of February 2003 through July 2004, Tymoczko, while working as an outside accountant for various individuals and businesses, forged checks and otherwise directed clients' funds to his own use without authorization.  Testimony from victims at the sentencing revealed that Tymoczko's embezzlement crippled the finances of one non-profit (including loss of grants and likely tax penalties), and drove another business to financial ruin.

See full release here.

Lawyer Embezzled Funds of Elderly Clients

The U.S. Attorney for the District of Columbia, Kenneth Wainstein, announced recently that former lawyer, Reginald Jerome Rogers, has been found guilty of mail fraud involving a scheme to defraud elderly clients.

According to the evidence at trial, Rogers practiced law from his home office in Bowie, Maryland, and handled the financial affairs of elderly clients and their estates in the Washington area. He designated several elderly women clients as his “priority” clients for whom he not only performed legal work, but also did household chores such as grocery shopping and running errands for these clients. By performing these household chores, the defendant gained his clients’ trust and induced them to turn over control of their finances to him as their fiduciary. After obtaining unlimited control over the clients’ financial assets, the defendant unlawfully diverted money from their accounts to his own for his own personal gain without their knowledge and consent. Rogers also transferred funds between the elderly clients’ accounts to conceal his diversions, and concealed his scheme by making false statements to elderly clients regarding the status of their funds and property.

See full release here.

Former bank manager sentenced to 41 months in prison for embezzling over $2 million

The United States Attorney for the District of Nevada announced recently that a former manager for an HSBC branch in Las Vegas, Michelle Fournier, has been sentenced to 41 months in prison for her guilty plea to embezzling over $2 million from the bank during 2004.

Part of Fournier's job duties included approving vendor invoices. In order to make money for herself, she created a fictitious company, RMS Business Consulting (RMS), solely for the purpose of defrauding HSBC. RMS had no legitimate business purpose and was used to further Fournier's scheme to defraud. The corporate office was actually a mail box rented in Fournier's name at a UPS store. Fournier then created fictitious invoices stating that RMS had performed certain services, and submitted them to HSBC for payment. Fournier forged her manager’s signature authorizing payment to RMS, and HSBC electronically deposited payments into an RMS bank account or mailed the checks to RMS. Fournier then withdrew the funds from the bank account for her own personal use.

See the full release here.

Former Non-Profit Director Sentenced for embezzling $250,000 in government benefits

The United States Attorney for the District of Minnesota announced yesterday that Sue Linehan, a former Program Director of Rainbow, R.P. Inc., a non-profit agency that assisted vulnerable people in paying their bills and taxes, was sentenced to 45 months in prison for embezzling approximately $250,000 in government benefits from her clients.

According to court documents, as director of Rainbow R.P. Inc., Linehan was entrusted by the Social Security Administration (SSA) and the Veterans Administration (VA) to manage money for those who could not do this for themselves. Linehan was suppose to pay clients’s bills on time and provide the rest to them for spending money. As part of her duties as a fiduciary for the SSA and the VA, Linehan was allowed to keep an administrative fee, approximately $30 per beneficiary per month, for her services. However, from January of 2001, and continuing until December of 2003, Linehan stole SSA benefits and VA benefits belonging to clients for her personal benefit. She used the money to pay for vacations and help her family start a restaurant. In what the government contended was an attempt to conceal her embezzlement, Linehan moved government benefits she received into and out of 12 different bank accounts. When clients complained, she would over-pay that person in an attempt to keep them quiet.

Linehan’s clients, which included those who had suffered from strokes, those who were in nursing homes, and those who suffered from mental or chemical health issues, were severely impacted by her theft of government benefits. Some clients had prescriptions stopped, some had their telephone and cable services disconnected, at least one lost their home due to foreclosure, and another had their vehicle repossessed.

See the full release here.

Son of Picatinny Arsenal Employee Admits Using Mom's Government Credit Card to Embezzle

The son of a former manager at Picatinny Arsenal pleaded guilty today in federal court, admitting that he used his mother’s government-issued credit card to purchase miscellaneous unauthorized items including, emergency equipment, digital cameras, and approximately $6,000 to $7,000 worth of gift cards for his personal use. Peterson also admitted that he did not have authority from the U.S. Army to use the credit card.

See full release here.

Former Director of Marketing Sentenced to 21 Months in Prison for Embezzling $246,000

United States Attorney Kevin V. Ryan announced in late June that Michael Fox, 43, of Mill Valley, California, was sentenced to twenty-one months in prison, and ordered to pay $246,832 in restitution for defrauding his former employer, CPP, Inc., a business consulting organization in Mountain View. According to the plea agreement and complaint filed by the FBI, Mr. Fox, who was Director of Marketing at CPP, Inc., created a fictitious company named Spotted Cow. After setting up a Spotted Cow website, the defendant opened up a business bank account, and arranged for a business address through a private mailbox service. On his home computer and personal laptop, Fox created fictitious invoices showing that Spotted Cow had performed advertising services for CPP Inc. In his managerial position at CPP, Fox authorized the invoices for payment. CPP paid over $216,000 to Fox for services that were never performed, and he used the funds for personal expenses.

See the full release here.

Virginia Woman Charged With Embezzling Funds From AIDS Charity

United States Attorney John L. Brownlee for the Western District of Virginia announced recently that Nancy Stewart was charged with allegedly defrauding AIDS Response Effort, Inc. ("ARE"), a non-profit service organization in Winchester, Virginia.

ARE established a program to identify individuals who are at high risk of being infected with HIV/AIDS and individuals who are infected but are unaware of it. The individuals are asked to provide a saliva sample in order to determine whether they are infected. Individuals are also asked to provide information to ARE on a Risk Assessment Questionnaire, which is signed by the individual, certifying the truth of the information on the form.

ARE employees are encouraged to find high risk individuals and are given the opportunity to earn a bonus for each questionnaire completed and each saliva sample obtained. The Grand Jury alleged that between June 1, 2003 and December 31, 2003, Stewart submitted 91 Risk Assessment Questionnaires for fictitious individuals. According to the indictment, Stewart would complete the questionnaire herself and then provided a swab of her own saliva for testing. She received a bonus for each questionnaire and saliva sample submitted.

See full release here.

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