ABC News reported earlier this week that police had a arrested 33-year-old woman on charges of embezzling over $1.6 million from the law firm at which she worked. Detectives traced the missing funds to the personal bank account of the woman arrested (a former employee of the law firm) who had used wire transfers and other means to divert the money.
According to a CNN report today, community organizing group ACORN has fired two board members, Karen Inman and Marcel Reid, it had asked to investigate allegations that the brother of ACORN's founder embezzled nearly $1 million from the group eight years ago. Inman responded that the termination will lead to a criminal investigation. There is already a lawsuit underway in which Inman and other members of a committee appointed to look into possible embezzlement and its concealment have sought access to ACORN books and records.
As one of its top stories for 2007, the Carroll County Times, a Maryland newspaper, cited the case of Karen Ann Malinowski, a Maryland woman who is awaiting sentencing after pleading guilty in July to embezzling nearly $250,000 from an elderly resident, Lois Hundertmark, to whom she was providing care.
Malinowski was the third person in Carollo County to be charged with embezzlement in the last two years. Malinowski had been stealing from Hundertmark for more than four years, even after Hundertmark died in 2006. Hundertmark's son alerted authorities to the theft after he noticed the loss of funds.
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The FBI announced earlier this month that Gary M. Aumann, a manager for American Airlines at O'Hare International Airport, was charged with embezzling more than $3 million from the airline to fund a lavish lifestyle that included the purchase of numerous vehicles, riverfront property in Missouri, a 35-foot yacht, and monthly payments to a dancer.
The scheme involved the diversion by Aumann of more than $3 million in "business" toward companies owned by co-defendant Donald Down even though Down's companies, A & D Supplies and Addison Business Supplies, did no work for American. The two simply split the proceeds, according to the charges.
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A 65-year-old former town official in Maine who embezzled more than $46,000 from the town over 10 years will be spending 15 months behind bars after pleading guilty on Friday.
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Samuel Scherch, a former assistant vice president at Fifth Third Bank, pleaded guilty recently to one count of embezzlement and one count of filing a false income tax return. He must repay $1.5 million to the bank and $500,000 to the IRS.
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An Iowa woman has been charged with stealing more than $629,000 from Title Services Corporation by allegedly transferring money from the business's trust account to three personal bank accounts.
See the news report here.
Steven Krell, 58, an attorney who formerly managed trust accounts was arrested recently on charges that he embezzled nearly $1.4 million from two clients, including a woman, 90, who suffered from dementia. If convicted, he faces more than six years in state prison.
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Two Pennsylvania men, Henry Machinski and Vincent Marchese, will each plead guilty to four felony charges in connection with embezzling $6.4 million from food giant Nestle USA. The U.S. Attorney said the plea agreement calls for the defendants to serve five to six years in prison.
Prosecutors said Machinski, then a sales manager for Nestle USA, created false invoices from an "A&P" grocery store and sent them to Nestle in Glendale, Calif. Marchese, who had no connection to the real A&P grocery chain, deposited the payments from Nestle in a bank account he set up in the name of "AP," according to prosecutors. The scheme netted $6.4 million between September 2001 through June 2005, when Nestle's auditors discovered it.
Marchese's lawyer said his client had a gambling problem that led him to commit the crime.
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A former accountant, Denis Shusterman, accused of embezzling $10.8 million from a businessman to bankroll a lavish lifestyle was sentenced to 14 years in prison. The money was primarily stolen from Kimber Manufacturing, a Yonkers, N.Y., firearms company at which Shusterman worked as the chief financial officer.
See the full story here.
