Have an embezzlement case of a 42-year-old from Timonium, MD pleaded guilty earlier this month to filing false tax returns in 2007 and 2008 after she neglected to claim over $382,000 embezzled from her former employer, Towson, MD-based employer. All Chicagoans know that this is how they got Capone not reporting his illicit income.
The employee had signature authority over the company’s operating, settlement and recording accounts, which allowed her to begin her embezzling program ,money from accounts starting in 2007 (guess they did not believe in the segregation of duties or internal controls). She deposited company checks directly into her personal bank account (her bank cheered). All of this started very early in her career with the company.
The employee took around $149,560 in 2007 and $232,968 in 2008. These embezzled funds were used to purchase jewelry, a BMW, trips, home improvements and private school tuition. What no yacht?
Now reporting this money to the IRS was out of the question. Without it being recorded on her W-2 (despite her writing “payroll” in the memo section of company checks she wrote out to herself) would have alerted authorities to the fraud. So she neglected to mention the ill-gotten gains on her 1040. This resulted in an estimated tax loss of $115,529.37 for her 2007 and 2008 returns.
The embezzler now faces a maximum sentence of three years in prison and a fine of $250,000, in U.S. District Court. I wonder if she has enough money left to pay the fine?