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Tag: Embezzlement

  • 3 Clear Lake employees embezzled $200K from city, charges say


    Three municipal employees of a central Minnesota town are accused of embezzling more than $200,000 collectively from the city.

    According to the criminal complaints, a forensic analyst was hired to investigate financial activity between Nov. 1, 2022 and Dec. 31, 2023 in Clear Lake, Minnesota. The review examined the city’s credit cards, vendors, payroll and bank statements.

    Two of the employees — who were married — used the city’s credit cards for personal purchases, the criminal complaints say. 

    Documents say the woman, who was responsible for city finances, was overpaid more than $14,000 in 2023 and used various credit cards and city accounts to buy more than $23,000 worth of items. The man defrauded the city of roughly $5,000, the complaint says.

    In their voluntary statements to officers, they both said they were going through financial hardship, according to the complaint. 

    A third employee used a city credit card to make purchases from two vendors, which an investigation revealed were not real, documents say. He was also overpaid for hours he didn’t work, and in all cost the city more than $71,000.

    The three employees were each charged with one count of theft and one count of embezzlement of public funds. 

    The city’s mayor said he had no comment on the matter, and would not confirm if the three people charged are still employed with the city.

    Clear Lake is a city of about 600 people and is 13 miles southwest of St. Cloud.

    WCCO Staff

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  • Kansas county agrees to pay $3 million over law enforcement raid on town newspaper

    TOPEKA, Kan. — A rural Kansas county has agreed to pay a little more than $3 million and apologize over a law enforcement raid on a small-town weekly newspaper in August 2023 that sparked an outcry over press freedom.

    Marion County was among multiple defendants in five federal lawsuits filed by the Marion County Record’s parent company, the paper’s publisher, newspaper employees, a former Marion City Council member whose home also was raided, and the estate of the publisher’s 98-year-old mother, the paper’s co-owner, who died the day after the raid. An attorney for the newspaper, Bernie Rhodes, released a copy of the five-page signed agreement Tuesday.

    Eric Meyer, the paper’s editor and publisher, told The Associated Press he is hoping the size of the payment is large enough to discourage similar actions against news organizations in the future. Legal claims against the city and city officials have not been settled, and Meyer said he believes they will face a larger judgment though he doesn’t expect those claims to be resolved for some time.

    “The goal isn’t to get the money. The money is symbolic,” Meyer said. “The press has basically been under assault.”

    The raid triggered a national debate about press freedom focused on Marion, a town of about 1,900 people set among rolling prairie hills about 150 miles (240 kilometers) southwest of Kansas City, Missouri. Meyer’s 98-year-old mother, Joan, lived with him and died of a heart attack that he blamed on the stress of the raid.

    Three days after the raid, the local prosecutor said there wasn’t enough evidence to justify it. Experts said Marion’s police chief at the time, Gideon Cody, was on legally shaky ground when he ordered the raid, and a former top federal prosecutor for Kansas suggested that it might have been a criminal violation of civil rights, saying: “I’d probably have the FBI starting to look.”

    Two special prosecutors who reviewed the raid and its aftermath said nearly a year later that the Record had committed no crimes before Cody led the raid, that the warrants signed by a judge contained inaccurate information from an “inadequate investigation” and the searches were not legally justified. Cody resigned as police chief in October 2023.

    Cody is scheduled to go to trial in February in Marion County on a felony charge of interfering with a judicial process, accused by the two special prosecutors of persuading a potential witness to withhold information from authorities when they later investigated his conduct. He had pleaded not guilty and did not respond to a text message Tuesday seeking comment about the county’s agreement.

    Attorneys for the city and the county and the county administrator did not immediately respond to messages seeking comment.

    Sheriff Jeff Soyez issued an apology that mentioned the Meyers by name, along with former council member Ruth Herbel and her husband.

    “The Sheriff’s Office wishes to express its sincere regrets to Eric and Joan Meyer and Ruth and Ronald Herbel for its participation in the drafting and execution of the Marion County Police Department’s search warrants on their homes and the Marion County Record,” the sheriff’s statement said.

    The Marion County Commission approved the agreement Monday after discussing it in private for 15 minutes.

    A search warrant tied the raid — which was led by Marion’s police chief — to a dispute between the newspaper and a local restaurant owner who had accused the Marion County Record of invading her privacy and illegally accessing information about her and her driving record.

    Meyer has said he believed the newspaper’s aggressive coverage of local politics and issues played a role and that his newsroom had been examining the police chief’s past work history.

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  • Money meant for Lakeville gymnastics programs embezzled from booster club, charges say


    The fundraising efforts for two Lakeville, Minnesota, gymnastics programs were flipped upside down after prosecutors say a booster club member embezzled more than $80,000. The former booster President Amber Ruhland says after years of suspicions, charges have been filed.

    The former treasurer of the club is facing two counts of theft for stealing money from two programs — more than $50,000 from one club and over $32,000 from another. Ruhland says she alerted police after noticing bills were going unpaid.

    “We were arguing with our [athletic directors] and the business owners that are saying we owe these bills and we’re just trying to figure out,” said Ruhland. “We don’t understand how they’re just not paid. There’s this much money; there should at least be that $30,000 and there’s not. Something’s just not right.”

    According to court documents, the former treasurer used money for personal and gambling expenses between 2021 and 2024.

    Court documents also say the woman told police she started by reimbursing herself for club-related expenses, but her “spending spiraled” out of control.

    Investigators say casino records show she lost more than $41,000 gambling — money that Ruhland says came directly from families close to the gymnastics program.

    “The money is coming from parents. This is not from the school. This is me, my husband and my friends and all these gymnasts’ parents raising money,” said Ruhland. “That’s why I’m here, making sure that every community out there sees this is so easy to do; people are doing it all the time and getting away with it.”

    Prosecutors say the woman eventually paid back about $30,000 to the impacted clubs. 

    Tony Peterson

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  • With Sarkozy in Prison, France Asks: Has the Judiciary Gone Too Far?

    PARIS—French courts have delivered one shock ruling after another this year, testing the balance of power between the country’s fiercely independent judiciary and its political leadership.

    In March, a court banned far-right leader Marine Le Pen from running for office for five years after finding her guilty of embezzling European Union funds. Then, on Tuesday, conservative Nicolas Sarkozy became the first former president to see the inside of a prison cell, after judges sentenced him to five years for conspiring to obtain campaign funds from Libyan strongman Moammar Gadhafi.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

    Stacy Meichtry

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  • Tom Girardi’s Son-in-Law Sentenced to Federal Prison

    David Lira, 65, said his life has been “a raging sea” in the five years since he was indicted for his role as an attorney at Girardi’s when his father-in-law was stealing clients’ money

    The son-in-law of disgraced former lawyer and Real Housewives of Beverly Hills star Tom Girardi was sentenced to four months in prison Monday for covering up the fact that Girardi withheld settlement funds from clients whose relatives had died in a 2018 Indonesian plane crash.

    David Lira, 65, who is married to Girardi’s daughter Jacqueline, was sentenced to four months in prison by a federal judge in Chicago Tuesday.

    He had pleaded guilty in June to charges connected to his work at his father-in-law’s now-defunct law firm, which included helping Girardi obtain a historic $7.5-million payout for the families of victims killed in the Lion Air plane crash. More than $3 million of that fund was then looted by Girardi and used, in part, to fund his lavish lifestyle with his wife, “Real Housewives of Beverly Hills” star Erika Jayne, a crime that Lira admitted he helped cover up.

    Before his sentencing, Lira’s lawyer Damon Cheronis pleaded for mercy from the judge in a sentencing memo, writing: “His life has been a raging sea for five years. David has been excoriated in the press, unfairly being treated as being one and the same with Tom Girardi. He has lost income, clients, prestige, and the respect of some (although far from all) of his peers.”

    “This is not a man who was ‘in it’ solely for the money,” the memo read, referencing his decades of legal service. The memo later stated that: “David did not intend to steal or cheat anyone else out of money.”

    The judge’s sentence was lenient compared to the years in prison federal prosecutors were seeking. U.S. Attorney Andrew Boutros said that Lira’s “lies to the victim clients perpetuated Girardi’s theft in real time.”

    In addition to the four-month prison term, Lira was sentenced to 200 hours of community service, four months of home confinement and two years of court-supervised release.

    After clients began demanding their money, Lira says he confronted Girardi and then left the firm. The Lion Air victims eventually received their settlement funds under court order.

    Girardi, 86, of Seal Beach, Calif., was convicted last year by a federal jury in Los Angeles of embezzling millions of dollars in settlement funds from other clients, including Lion Air victims. He was sentenced to more than seven years in prison this year for his swindling of clients.

    Michele McPhee

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  • Melville company supervisor pleads guilty to $1.6M fraud | Long Island Business News

    THE BLUEPRINT:

    • The supervisor embezzled over $1.6M from a Melville healthcare firm, DOJ said

    • Funds were used for a wedding, luxury travel and a failed restaurant

    • Fraud ran from Oct. 2020 to Nov. 2024 using fake refund transactions

    • After guilty plea, faces up to 20 years in federal prison

    A supervisor at a Melville-headquartered company pleaded guilty Thursday in federal court in Central Islip in connection to a $1.6 million fraud scheme, officials said.

    Tony Ream, a South Carolina resident and credit supervisor at the company, had allegedly transferred the funds from the firm’s bank account to one he controlled, using the money for a failed restaurant venture, wedding expenses and luxury international travel, according to U.S. Department of Justice.

    “Ream abused his authority and betrayed his employer and its customers to fund his own lavish lifestyle,” Joseph Nocella, Jr., U.S.  Attorney for the Eastern District of New York, said in a news release about the guilty plea.

    “In just a few years, Ream embezzled over $1.6 million and used the stolen money to pay for his wedding, luxury international travel, and for renovations to a restaurant he had opened,” Nocella added. “Ream will now be held accountable for this egregious conduct, thanks to the diligent work of our Office and our partners at the FBI.”

    While the company was not named, officials described it as “ the world’s largest provider of health care solutions to office-based dental and medical practitioners worldwide.”

    Ream, who joined the company in 2019, had allegedly embezzled the money from October 2020 to November 2024 by diverting funds from customer refund accounts – some inactive – into his personal accounts, disguising them as legitimate refunds. He also misled subordinates to unknowingly aid the scheme, officials said.

    As part of his plea, Ream agreed to full restitution. When sentenced, he faces up to 20 years in prison.


    Adina Genn

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  • Raid on upstate New York food manufacturer leads to dozens of detentions

    CATO, N.Y. — Federal agents forced open the doors of a snack bar manufacturer and took away dozens of workers in a surprise enforcement action that the plant’s co-owner called “terrifying.”

    Video and photos taken at the Nutrition Bar Confectioners plant Thursday showed numerous law enforcement vehicles outside the plant and workers being escorted from the building to a Border Patrol van. Immigration agents ordered everyone to a lunchroom, where they asked for proof the workers were in the country legally, according to one 24-year-old worker who was briefly detained.

    The reason for the enforcement action was unclear. Local law enforcement officials said the operation was led by U.S. Homeland Security Investigations, which did not respond to requests for information. Nutrition Bar Confectioners co-owner Lenny Schmidt said he was also in the dark about the purpose of the raid.

    “There’s got to be a better way to do it,” Schmidt told The Associated Press on Friday at the family-owned business in Cato, New York, about 30 miles (48 kilometers) west of Syracuse.

    The facility’s employees had all been vetted and had legal documentation, Schmidt said, adding that he would have cooperated with law enforcement if he’d been told there were concerns.

    “Coming in like they did, it’s frightening for everybody — the Latinos, Hispanics that work here, and everybody else that works here as well, even myself and my family. It’s terrifying,” he said.

    Cayuga County Sheriff Brian Schenck said his deputies were among those on scene Thursday morning after being asked a month ago to assist federal agencies in executing a search warrant “relative to an ongoing criminal investigation.”

    He did not detail the nature of the investigation.

    The lack of explanation left state Sen. Rachel May, a Democrat who represents the district, with questions.

    “It’s not clear to me, if it’s a longstanding criminal investigation, why the workers would have been rounded up,” May said by phone Friday. “I feel like there are things that don’t quite add up.”

    The 24-year-old worker, who spoke to The Associated Press on condition of anonymity because he feared retribution, said that after he showed the agents he is a legal U.S. resident, they wrote down his information and photographed him.

    “Some of the women started to cry because their kids were at school or at day care. It was very sad to see,” said the worker, who arrived from Guatemala six years ago, then became a legal resident two years ago after working with an immigration attorney.

    He said his partner lacked legal status and was among those taken away.

    The two of them started working at the factory about two years ago. He was assigned to the snack bar wrapping department and she to the packing area. He said he couldn’t talk to her before she was led away by agents and didn’t know Friday where she had been detained.

    “What they are doing to us is not right. We’re here to work. We are not criminals,” he said.

    Schmidt said he believed immigration enforcement agents are singling out any company with “some sort of Hispanic workforce, whether small or large.”

    The raid came the same day that immigration authorities detained 475 people, most of them South Korean nationals, at a manufacturing site in Georgia where Korean automaker Hyundai makes electric vehicles.

    Without his missing employees, Schmidt estimated production at the food manufacturer would drop by about half, making it a challenge to meet customer demand. The plant employs close to 230 people.

    “We’ll just do what we need to do to move forward to give our customers the product that they need,” he said, “and then slowly recoup, rehire where we need.”

    New York Gov. Kathy Hochul, a Democrat, said the workers detained included parents of “at least a dozen children at risk of returning from school to an empty house.”

    “I’ve made it clear: New York will work with the federal government to secure our borders and deport violent criminals, but we will never stand for masked ICE agents separating families and abandoning children,” she said in a statement.

    The advocacy group Rural and Migrant Ministry said between 50 and 60 people, most of them from Guatemala, were still being held Friday. Among those released late Thursday, after about 11 hours, was a mother of a newborn child who needed to nurse her baby, said the group’s chief program officer, Wilmer Jimenez.

    The worker who was briefly detained said he has been helping to support his parents and siblings, who grow corn and beans in Guatemala.

    He said he took Friday off but plans to get back to work on Monday.

    “I have to go back because I can’t be without work,” he said.

    ——

    Olga Rodriguez in San Francisco and Carolyn Thompson in Buffalo, New York, contributed to this report.

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  • Former MSP Airport Chick-fil-A manager pleads guilty to stealing $144K, spending money on Only Fans

    Former MSP Airport Chick-fil-A manager pleads guilty to stealing $144K, spending money on Only Fans

    MSP Airport Chick-fil-A manager pleads guilty to embezzling $144K, spending money on Only Fans


    MSP Airport Chick-fil-A manager pleads guilty to embezzling $144K, spending money on Only Fans

    00:15

    MINNEAPOLIS — A former Chick-fil-A manager at the Minneapolis-St. Paul International Airport has pleaded guilty to embezzling nearly $150,000 from the restaurant.

    According to charging documents, Timothy Hill Jr. of Woodbury embezzled roughly $144,000 during a 13-month period, spending the money on jewelry and OnlyFans. He was later indicted by a grand jury with five counts of wire fraud.

    On Thursday, Hill entered a guilty plea to one count of wire fraud, with the rest of the charges being dismissed.

    Between September of 2022 and October of 2023, he collected cash from the Chick-fil-A and the Settebello Pizzeria at MSP, which are owned by the same company, and pocketed it instead of depositing it in a safety deposit box, charges say.

    Documents say that he used cash receipts to cover up past thefts, and tried to insinuate that the deposits were delayed, not stolen.

    Hill then spent the cash on jewelry, online sports books and OnlyFans. He also sent tens of thousands of dollars through Cash App to multiple female MSP workers in exchange for personal photographs and videos, charges state.

    A sentencing hearing has yet to be scheduled.  

    Cole Premo

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  • HOA at Ocean Towers in Santa Monica Stole $5.7M, State Says

    HOA at Ocean Towers in Santa Monica Stole $5.7M, State Says

    Views from the 19-story twin Ocean Towers above the beach in Santa Monica are stellar. But a look into management at the 317-unit luxury co-op is as dark as a Hollywood film noir.

    A decade-long saga of alleged fraud and manipulation has unfolded at the Ocean Towers condo complex at 201 Ocean Boulevard, the Los Angeles Times reported in a 4,300-word expose.

    A web of deceit involves former figures within its homeowners association, including John Spahi, his son Omar, former HOA President Joseph Orlando, and his late wife, Dorothy.

    Residents of Ocean Towers, built in 1971, had long harbored suspicions about John Spahi’s abuse of power within the HOA board. 

    Allegations included manipulating board elections, draining HOA accounts for personal legal battles and orchestrating inside deals with valuable real estate. 

    The scale of the alleged grift came to light when a grand jury indicted the Spahis and Orlandos on 119 charges, including grand theft, identity theft and money laundering, totaling $5.7 million in stolen funds, according to Los Angeles County prosecutors and the state Attorney General’s office.

    The fraud allegedly involved billing the HOA for construction projects that were never completed by a company named Progressive, in the name of an unwitting owner.

    Lawsuits and investigations revealed a complex scheme of financial maneuvering, including transferring units among relatives and partners and taking out massive loans without homeowner approval.

    Ocean Towers residents faced intimidation tactics, lawsuits and eviction threats when challenging the Spahis and Orlandos. 

    Despite initial resistance, some residents, led by Michael Reach and attorney Jeffrey Wittenberg, took legal action against the entrenched board. Eventually, a court-appointed receiver ousted the old guard, revealing the dire financial straits of Ocean Towers and the extent of the alleged embezzlement.

    As the legal battles continue, the residents looks toward recovery under new management. 

    However, the repercussions of the fraud may linger, with residents burdened by high HOA fees and debt incurred during the Spahi era. 

    Meanwhile, John Spahi awaits trial at an unscheduled date, while facing scrutiny from residents who question how he has evaded accountability for years of alleged misconduct.

    — Dana Bartholomew

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    TRD Staff

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  • Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case

    Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case

    DHAKA, Bangladesh — A court in Bangladesh on Sunday granted bail to Nobel laureate Muhammad Yunus in a $2.3 million embezzlement case.

    Yunus, who was awarded the Nobel Peace Prize in 2006 for pioneering the use of microcredit to help impoverished people, was sentenced to six months in prison in January on a separate charge of violating labor laws. He was granted bail in that case too and has appealed.

    Prosecutor Mir Ahmmad Ali Salam said the embezzlement case involves a workers welfare fund of Grameen Telecom, which owns 34.2% of the country’s largest mobile phone company, Grameenphone, a subsidiary of Norway’s telecom giant Telenor.

    “The charges involve the embezzlement of over 250 million takas and money laundering. The accused gave the money to trade union leaders instead of the workers. This way they deprived the ordinary workers of their rightful earnings,” Salam said.

    Yunus and seven other defendants appeared in court Sunday and six others were absent.

    Defense counsel Abdullah Al Mamun told the court that Yunus, 83, and the others were innocent.

    Last year, more than 170 global leaders and Nobel laureates urged Bangladesh’s Prime Minister Sheikh Hasina to suspend legal proceedings against Yunus. His supporters say he has been targeted because of his frosty relations with Hasina. The government has denied the allegations.

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  • A Chinese man is extradited from Morocco to face embezzlement charges in Shanghai

    A Chinese man is extradited from Morocco to face embezzlement charges in Shanghai

    A Chinese man wanted for allegedly embezzling millions of yuan (hundreds of thousands of dollars) from his company and then fleeing to Morocco has been extradited back to China, State broadcaster CCTV showed the man being handcuffed and led to a police…

    ByThe Associated Press

    November 18, 2023, 10:24 AM

    BEIJING — A Chinese man wanted for allegedly embezzling millions of yuan (hundreds of thousands of dollars) from his company and then fleeing to Morocco was extradited back to China on Saturday, the Ministry of Public Security said.

    The man, a financial executive at the company, used passwords for its bank accounts to transfer money to his personal account, the ministry said in a statement. It didn’t name the company but said that Shanghai police filed a case against the man in February 2020.

    Moroccan police arrested him in April of this year and a court approved his extradition in late October. Chinese officials brought him back to Shanghai on Saturday.

    State broadcaster CCTV showed the man, identified only by his surname Luo, signing an arrest warrant after getting off the plane and then being handcuffed. Police officers led him from the jetway to the tarmac and to a waiting police car.

    The Public Security Ministry said it was the first extradition from Morocco to China since an extradition treaty between the two countries took effect in 2021.

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  • Son of WWE ‘Million Dollar Man’ Ted DiBiase charged in scam involving NFL legend Brett Favre

    Son of WWE ‘Million Dollar Man’ Ted DiBiase charged in scam involving NFL legend Brett Favre

    Federal prosecutors have leveled a legal dropkick on former pro wrestler Ted DiBiase Jr., charging him with stealing millions of dollars meant to feed needy kids in a Mississippi scandal that has also tarnished the reputation of NFL hall of famer Brett Favre.

    From the archives (September 2022): NFL star Brett Favre and Gov. Phil Bryant texted about how to use $5 million of welfare funds to build a new volleyball stadium

    DiBiase,…

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  • Employee Theft is More Common Than You Think. This is What You Should Do About It. | Entrepreneur

    Employee Theft is More Common Than You Think. This is What You Should Do About It. | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    Are you a fan of chicken wings? So much so that you’d be willing to drop $1.5 million on the stuff?

    According to a CBS News report, Vera Liddell — a former director of food services at a school district in suburban Chicago — was. She purchased, yes, $1.5 million worth of wings from July 2020 until February 2022 — placing hundreds of unauthorized orders, which were then paid for by the district and then received by her. Authorities are still investigating the scheme, but it’s obvious that Liddell — assuming she’s guilty — likely sold the wings for a profit.

    How did the scheme get uncovered? A $300,000 budget overage caught the eye of accountants. Oh, and someone noticed that the school district doesn’t even serve chicken wings.

    The theft of so many chicken wings may be a little unusual. But fraud at a business certainly isn’t. Almost every day, you can read reports about how employees are stealing from their employers.

    There’s the legal secretary in New Jersey that allegedly wrote more than $184,000 in checks from her firm’s account for her friends and family. Or the procurement manager at a New York business that has been accused by the FBI of creating fraudulent invoices that directed payment into his personal account. Or the human resources manager at a small manufacturer in Pennsylvania who gave herself raises and also spent thousands of dollars of her employer’s money using the firm’s credit card. There’s the financial manager of a Minnesota-based property management company who embezzled more than $1 million from company funds. And the director of accounting services who stole more than $2 million from her employer and used it for trips and other personal expenses.

    Related: I Know How To Easily Steal Money From Your Company’s Bank Account

    There’s the employee at a small bank who created and paid himself with cashier’s checks using forged signatures. Or the office manager at a law firm in Rhode Island that walked away with hundreds of thousands of dollars in firm funds. Or the employee at a Florida beer distributor that tampered with the company’s accounts receivable system to steal more than $300,000. Or the bookkeeper of a Delaware nonprofit who stole more than $2.6 million over a 25-year period.

    It doesn’t really matter to you and me why these people did these things. And it doesn’t really matter how. What really matters is when.

    Like many cases of fraud, these incidents — and countless others — happened over a period of time and were ultimately discovered long after the money disappeared. And although prosecuting these people may provide some psychological relief to the business owners who were victims they’re still out of pocket. The money stolen over all those years has been spent. Some of it may be reclaimed. But most of it is long gone. You don’t want this happening. So what should you do to prevent this kind of thing from happening before it happens? Well, there are a few things.

    For starters, you don’t put one person in control of everything. You segregate duties. Entering a customer invoice into your accounting system and inputting cash received should be done by two different people. The same goes for the payables side. If three people were ordering, receiving and paying for those chicken wings, it’s likely that one of them would have questioned why the school district was buying chicken wings, let alone why there wasn’t any buffalo sauce included. You should also have an outside person — an hourly financial temp worker — do your bank reconciliations.

    Your open accounts receivable report — and financial statements — should be closely reviewed every month by someone other than your accounting staff. That’s you. And while you’re at it, ask your bookkeeper to print out your monthly general ledger activity and take an hour out to read it. It’s not exactly pulp fiction, but your general ledger is basically the financial diary of your business and the devil’s always in the details. Identify and investigate any transaction that seems unfamiliar or unusual. Hopefully, you’ll get reasonable answers, but there’s always a chance you won’t.

    Related: How to Reduce the Risk of Fraudsters Accessing Your Business and Personal Bank Accounts

    Oversight is critical. A police friend of mine once told me that to perform the perfect crime you can’t include anyone else because once more people get involved it’s no longer perfect. The same goes for accounting.

    Another important tactic is to require that everyone — particularly anyone who deals with your money — takes a vacation. When someone is out of the office, and someone fills in for that person, you’re not only making sure that there’s cross-training, but it’s very likely that the fill-in will stumble on something unusual if something unusual is happening. The more frequent vacation is required — at least twice per year — the more you potentially limit the amount of time a fraud could take place. You don’t need workaholics. You need your money.

    It’s also important that you have a formal process for disbursing funds. That means getting written approval from multiple people for transactions over a certain amount. The approvals can come using an electronic signing platform, or you can ask your accounting software provider. Yes, even this type of procedure can be circumvented by the wily bookkeeper. But putting these controls in place and sticking to them will pick up anything significant and at the very minimum send a message to all employees that you have a control system and deem it important.

    Finally, get insurance and get your financial employees bonded. Make sure you have coverage for theft and business loss or interruption that’s caused by theft. This kind of insurance is relatively inexpensive so buy a lot of it.

    As business owners, the problem we all have is we trust too much. We are generally optimistic souls who believe that people wouldn’t harm us. But that’s not really true, is it? If you don’t believe me, I’ve got a few thousand pounds of chicken wings to sell if you’re interested.

    Gene Marks

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  • Politician gets house arrest in Dominican corruption case

    Politician gets house arrest in Dominican corruption case

    A judge in the Dominican Republic on Tuesday ordered an ex-presidential candidate held under house arrest and two former high-ranking officials jailed while awaiting trial in a record $347 million embezzlement case

    ByMARTÍN ADAMES ALCÁNTARA Associated Press

    SANTO DOMINGO, Dominican Republic — A judge in the Dominican Republic on Tuesday ordered an ex-presidential candidate held under house arrest and two former high-ranking officials jailed while awaiting trial in a record $347 million embezzlement case linked to illegal campaign financing.

    Gonzalo Castillo, a former public works minister who won 37% of the vote when he ran in the 2020 general elections and lost to current President Luis Abinader, was held under house arrest on $365,000 bond. Donald Guerrero, former treasury minister, and José Ramón Peralta, former administrative minister to the presidency, were ordered held without bail for 18 months.

    The judge also banned former comptroller general, Daniel Omar Caamaño, from leaving the country, and placed former director of the State Sugar Council, Luis Miguel Piccirilo, under house arrest.

    It wasn’t immediately clear if their attorneys would appeal the decision. A total of 20 suspects have been arrested in the case. Officials of Castillo’s Dominican Liberation Party have accused prosecutors of investigating only former government officials while turning a blind eye to corruption allegations against Abinader’s current administration.

    The Dominican Republic’s justice system allows authorities to hold suspects in jail without bond or under house arrest ahead of trial.

    Judge Kenya Romero also stated that prosecutors have a total of 18 months to investigate what is considered the country’s biggest corruption case.

    Last month, authorities arrested Castillo and other suspects accused of paying bribes, laundering assets and illegally financing the previous electoral campaign after embezzling $347 million in government funds.

    Abinader has vowed to crack down on corruption and impunity. Last year, police arrested Jean Alain Rodríguez, the Dominican Republic’s former attorney general, and others accused of diverting government funds in an unrelated case.

    Also arrested in other cases are several high-ranking government officials with ties to former President Danilo Medina.

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  • Video: FTX Used ‘Old-Fashioned Embezzlement,’ New Chief Says

    Video: FTX Used ‘Old-Fashioned Embezzlement,’ New Chief Says

    John J. Ray III, the new C.E.O. of FTX, described the collapse of the company as a “paperless bankruptcy” in his testimony to the House Committee on Financial Services.

    The Associated Press

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  • Reformers take 6 of 14 UAW board seats, could win majority

    Reformers take 6 of 14 UAW board seats, could win majority

    DETROIT — Reform-minded candidates won several races as members of the United Auto Workers union voted on their leaders in an election that stemmed from a federal bribery and embezzlement scandal involving former union officials.

    In unofficial results posted early Sunday on a federal court-appointed monitor’s website, challengers took six of 14 seats on the union’s International Executive Board. They could win as many as eight, including the presidency, and control a majority, depending on the outcome of three runoff elections.

    The reform candidates, most part of a slate called UAW Members United, campaigned on taking a more confrontational stance in bargaining with Detroit’s three automakers. They want to rescind concessions made to companies in previous contract talks, restoring cost-of-living pay raises and eliminating a two-tier wage and benefit system.

    The adversarial stance is likely to raise costs for General Motors, Ford and Stellantis, which almost certainly would be passed on to consumers. Even without the election, costs likely would have gone up as workers seek a bigger share of billions of dollars in profits.

    In the race for president, incumbent Ray Curry defeated challenger Shawn Fain by 614 votes. Curry had 38.2% of the vote to Fain’s 37.6%. But neither got a majority in the five-candidate field, so there will be a runoff election in January.

    Mike Booth and Rich Boyer, both from Members United, took two of three vice president slots. Two vice president candidates from Curry’s Solidarity Team slate, incumbent Chuck Browning and Tim Bressler, will compete in a runoff for the third vice president slot.

    Members United candidate Margaret Mock ousted current Secretary-Treasurer Frank Stuglin. Reform-minded candidates took three regional director slots, with another headed for a runoff.

    Winners will be sworn in on Dec. 12. Ballots for the runoff elections will be mailed Jan. 12 with a Feb. 28 deadline to return them. Votes will be counted starting March 1, according to the website of Monitor Neil Barofsky.

    In an interview, Fain said the election puts the companies on notice “to get ready. We’re coming for you.” He said companies are making billions of dollars and have closed or spun off plants and failed to give the Stellantis plant in Belvidere, Illinois, a new vehicle to build after it stops making its current model.

    “It’s just a fact that over the years our leadership has become way too close to management,” he said.

    Curry’s slate said in a statement that it is fighting for all active and retired members. “Our member expectations are high, and our team has the experience and proven track record to both build coalitions for the fight and deliver results,” it said.

    Curry, elected by a vote of the International Executive Board in 2021 to replace retiring Rory Gamble, said at a September candidates’ forum that he has put financial safeguards and reforms in place and has plans to bring union members “back into greater days.” He said the union also has plans to recruit new members.

    “We don’t just make false demands and deliver false hopes,” he said.

    Turnout in the election for the 372,000-member union was low. Of about 1 million ballots mailed to active members and retirees, only 10.5% were returned.

    The 2023 contract talks come at a critical juncture for the union, which faces a transition from internal combustion vehicles to those that run on batteries. With fewer moving parts, fewer people will be needed to make electric vehicles, and jobs making engines and transmissions could be shifted to battery assembly plants that might not be unionized.

    The election came after union members last December decided to directly vote on leaders for the first time instead of having them picked by delegates to a convention.

    Under the old system, convention delegates were picked by local union offices. But the new slate of officers was selected by the current leadership, and there was rarely any serious opposition.

    The voting happened after 11 union officials and a late official’s spouse pleaded guilty in the corruption probe, including the two former presidents, Gary Jones and Dennis Williams. Both were sentenced to prison. The first criminal charges in the probe were filed in 2017.

    To avoid a federal takeover, the union agreed to reforms and Barofsky’s appointment to oversee the UAW and elections of the executive board.

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  • Reform candidates lead in UAW races with 68% of vote counted

    Reform candidates lead in UAW races with 68% of vote counted

    DETROIT — Members of the United Auto Workers union appeared on Thursday to favor replacing many of their current leaders in an election that stemmed from a federal bribery and embezzlement scandal involving former union officials.

    Reform-minded candidates, many part of the UAW Members United slate, are leading or close in multiple key races with about 68% of the vote counted. Many challengers campaigned on rescinding concessions made to companies in previous contract talks, including cost-of-living pay raises, elimination of a two-tier wage and benefit system, and other items.

    That could raise costs for Detroit’s three automakers — General Motors, Ford and Stellantis — and almost inevitably will drive up already expensive auto prices.

    With tallies from six of nine UAW regions counted, incumbent President Ray Curry had a slim lead over Shawn Fain, an international union official who started at a Stellantis plant in Kokomo, Indiana, in a five-candidate race.

    Curry had 38.6% of the vote, while Fain was second with 38%. There likely will be a runoff election early next year between Fain and Curry since neither had a majority of the votes.

    In the race for three vice presidents, Rich Boyer and Mike Booth, both Members United candidates, are first and second in an eight-candidate field, followed by incumbent Vice President Chuck Browning. A runoff could happen there, too.

    Margaret Mock, the Members United candidate for secretary-treasurer, had 62.6% of the vote to lead incumbent Frank Stuglin at 37.4%. Where tallies have been completed, candidates who campaigned on reforming the union also won three of nine regional director positions, with another heading to a runoff.

    It wasn’t clear when the vote count would be finished. The ballots are being counted by a company hired by a court-appointed monitor who is overseeing the election and the union.

    Fain led the Members United ticket, which campaigned on reforming the 372,000-member UAW after the scandal. The election also has broad implications for contract talks with the Detroit auto companies that start next year.

    Fain has advocated for more of a confrontational stance and has accused union leadership of complacency. He has said the UAW has had a philosophy for 40 years of viewing automakers as partners rather than adversaries.

    He said it’s too early to declare a winner but said in an interview Thursday that the early vote totals are “a loud and clear message to the companies and the businesses to get ready, we’re coming for you.”

    The automakers, he said, are making making the best profits in their history, yet are closing factories and costing union jobs. He gave General Motors’ 2019 closure of its Lordstown, Ohio, assembly plant as an example, plus a lack of new vehicles for Stellantis’ Belvidere, Illinois, plant, which he said has lost 3,000 workers.

    At a candidates’ forum in September, Fain said union leaders should have reversed concessions made starting in 2007 and should have won job security guarantees.

    “We’ve had at least 10 years with perfect conditions for regaining and improving what was lost during the Great Recession,” he said.

    The contract talks come at a critical juncture for the union, which faces a transition from internal combustion vehicles to those that run on batteries. With fewer moving parts, fewer people will be needed to make electric vehicles, and jobs making engines and transmissions could be shifted to battery assembly plants that might not be unionized.

    The election came after union members last December decided to directly vote on leaders for the first time instead of having them picked by delegates to a convention.

    Under the old system, convention delegates were picked by local union offices. But the new slate of officers was selected by the current leadership, and there was rarely any serious opposition.

    A company hired by Monitor Neil Barofsky mailed out about 1 million ballots to active and retired union members. But only 106,790, roughly 10.7%, were returned.

    The voting happened after 11 union officials and a late official’s spouse pleaded guilty in the corruption probe since 2017, including the two former presidents, Gary Jones and Dennis Williams. Both were sentenced to prison.

    To avoid a federal takeover, the union agreed to reforms and Barofsky’s appointment to oversee elections of the 14-member executive board.

    Curry, appointed in 2021 to replace retiring Rory Gamble to lead the union, said he has put financial safeguards and reforms in place and has plans to bring union members “back into greater days.” He said at the candidates’ forum that the union also has plans to recruit new members.

    “We don’t just make false demands and deliver false hopes,” he said.

    ————

    This story has been corrected to show that 68% of the vote has been counted, not 73%.

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  • Reform candidates lead in UAW races with 73% of vote counted

    Reform candidates lead in UAW races with 73% of vote counted

    DETROIT — Members of the United Auto Workers union appeared on Thursday to favor replacing many of their current leaders in an election that stemmed from a federal bribery and embezzlement scandal involving former union officials.

    Reform-minded candidates, many part of the UAW Members United slate, are leading or close in multiple key races with about 73% of the vote in. Many challengers campaigned on rescinding concessions made to companies in previous contract talks, including cost-of-living pay raises, elimination of a two-tier wage and benefit system, and other items.

    That could raise costs for Detroit’s three automakers — General Motors, Ford and Stellantis — and almost inevitably will drive up already expensive auto prices.

    With tallies from six of nine UAW regions counted, incumbent President Ray Curry had a slim lead over Shawn Fain, an international union official who started at a Stellantis plant in Kokomo, Indiana, in a five-candidate race.

    Curry had 38.6% of the vote, while Fain was second with 38%. There likely will be a runoff election early next year between Fain and Curry since neither had a majority of the votes.

    In the race for three vice presidents, Rich Boyer and Mike Booth, both Members United candidates, are first and second in an eight-candidate field, followed by incumbent Vice President Chuck Browning. A runoff could happen there, too.

    Margaret Mock, the Members United candidate for secretary-treasurer, had 62.6% of the vote to lead incumbent Frank Stuglin at 37.4%. Where tallies have been completed, candidates who campaigned on reforming the union also won three of nine regional director positions, with another heading to a runoff.

    It wasn’t clear when the vote count would be finished. The ballots are being counted by a company hired by a court-appointed monitor who is overseeing the election and the union.

    Fain led the Members United ticket, which campaigned on reforming the 372,000-member UAW after the scandal. The election also has broad implications for contract talks with the Detroit auto companies that start next year.

    Fain has advocated for more of a confrontational stance and has accused union leadership of complacency. He has said the UAW has had a philosophy for 40 years of viewing automakers as partners rather than adversaries.

    He hasn’t declared victory but said in an interview Thursday that the early vote totals are “a loud and clear message to the companies and the businesses to get ready, we’re coming for you.”

    The automakers, he said, are making making the best profits in their history, yet are closing factories and costing union jobs. He gave General Motors’ 2019 closure of its Lordstown, Ohio, assembly plant as an example, plus a lack of new vehicles for Stellantis’ Belvidere, Illinois, plant, which he said has lost 3,000 workers.

    At a candidates’ forum in September, Fain said union leaders should have reversed concessions made starting in 2007 and should have won job security guarantees.

    “We’ve had at least 10 years with perfect conditions for regaining and improving what was lost during the Great Recession,” he said.

    The contract talks come at a critical juncture for the union, which faces a transition from internal combustion vehicles to those that run on batteries. With fewer moving parts, fewer people will be needed to make electric vehicles, and jobs making engines and transmissions could be shifted to battery assembly plants that might not be unionized.

    The election came after union members last December decided to directly vote on leaders for the first time instead of having them picked by delegates to a convention.

    Under the old system, convention delegates were picked by local union offices. But the new slate of officers was selected by the current leadership, and there was rarely any serious opposition.

    A company hired by Monitor Neil Barofsky mailed out about 1 million ballots to active and retired union members. But only 106,790, roughly 10.7%, were returned.

    The voting happened after 11 union officials and a late official’s spouse pleaded guilty in the corruption probe since 2017, including the two former presidents, Gary Jones and Dennis Williams. Both were sentenced to prison.

    To avoid a federal takeover, the union agreed to reforms and Barofsky’s appointment to oversee elections of the 14-member executive board.

    Curry, appointed in 2021 to replace retiring Rory Gamble to lead the union, said he has put financial safeguards and reforms in place and has plans to bring union members “back into greater days.” He said at the candidates’ forum that the union also has plans to recruit new members.

    “We don’t just make false demands and deliver false hopes,” he said.

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  • Ex-con gets at least 18 years in severed head case in Vegas

    Ex-con gets at least 18 years in severed head case in Vegas

    LAS VEGAS — An ex-convict who led police on a chase around Las Vegas before officers found the severed head and dismembered body of his friend in a stolen vehicle he was driving was sentenced Thursday to at least 18 years in prison.

    Eric John Holland said he was “truly remorseful” for killing Richard P. Miller, whose remains were found in coolers in the bed of a Chevrolet Avalanche in which Las Vegas police stopped Holland last December. Authorities found that Miller had been shot several times, including at least once in the head, before his body was carved up.

    “It’s a terrible thing that happened and I’m just so sorry,” Holland said.

    That provided little comfort to Miller’s daughter, who tearfully and haltingly told a judge she felt “very little relief,” that Holland pleaded guilty in July to a reduced charge and avoiding trial on an open murder charge that could have resulted in a life sentence behind bars.

    “I don’t know how to make sense of it,” sobbed Amanda Dawn Potter, who traveled from Portland, Oregon, for Holland’s sentencing. She called her father’s slaying “the most bizarre thing to ever happen to my family.”

    “My dad didn’t deserve this,” she said.

    Holland, 58, has an extensive criminal history, mostly for forgery and embezzlement, but also including an attempted prison escape in Texas.

    Before Clark County District Court Judge Tierra Jones sentenced him to 18 to 45 years for second-degree murder and felony theft, Holland said Thursday he hoped authorities would continue to investigate his motive for killing Miller.

    “I was going to bring it up in court, but I’m not going to because of family members,” Holland said. “There was a reason, and I hope that they’ll get closure today.”

    Holland’s attorney, Daniel Westbrook, told the judge he would not say more than what his client said. Westbrook declined additional comment after the sentencing hearing.

    Holland was friends with Miller, 65, who lived on a houseboat at Lake Mead, the Colorado River reservoir about a 30-minute drive from Las Vegas.

    Miller was reported missing in November 2021, and investigators later determined he was killed during an argument with Holland.

    The Las Vegas Review-Journal reported Thursday that in jailhouse interviews, Holland said he wanted police to investigate whether Miller was responsible for the disappearance of Miller’s ex-wife, Jing Me Zhu, in 2018 or 2019.

    “I’m going to prison for the rest of my life, and I just want to make sure that she wasn’t forgotten,” Holland told the newspaper.

    Holland said he believed Zhu lived in China and Canada before marrying Miller in 2018. In divorce proceedings less than a year later, Miller alleged in court documents that Zhu left him and moved to China. Records showed that Zhu could not be located to receive a court summons.

    Westbrook told the newspaper that Holland believes Zhu is dead and that Miller killed her.

    Holland did not provide details of Miller’s death, the Review-Journal reported.

    Las Vegas police said Thursday they had no missing person investigation related to Zhu.

    Police previously said Holland drove away from patrol officers trying to stop him on Dec. 23, 2021, in a stolen pickup truck and that he was seen switching vehicles before he was arrested in the second vehicle by officers who tracked him to an apartment complex west of the Las Vegas Strip.

    Police later found receipts in the vehicles for items including a power saw and trash bags purchased from a home improvement store after Miller’s disappearance.

    Holland had been sought since May 2019 on an arrest warrant in a 2018 case in Las Vegas accusing him of embezzlement, identity theft, issuing false checks and theft, according to court records. He had posted $5,000 bail in that case.

    Records show Holland also used the name Eric Allen Holland and served prison time in Nevada for a felony theft conviction stemming from a 2000 forgery case in Las Vegas. He also used names including John Carl Hall, Phil Whidden, Robert Daniel Lauer and Steven Tauber, prison records show.

    Holland had prior felony convictions dating to 1987 in California for embezzlement, assault with a deadly weapon, resisting arrest causing substantial bodily harm and property theft and false identification, according to a Las Vegas prosecutor, prison and court records.

    Records show that Holland was convicted in Texas in a federal counterfeiting case, and later of attempted escape and aiding in an escape.

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