embezzlement

December 9, 2022

Benefits Coordinator at CTA Accused of Looting Pensions Using Dead Pensioners

by Law Offices of David L. Freidberg, P.C.

A benefits specialist for the CTA is facing federal fraud and embezzlement charges related to the withdrawal of $350,000 worth of pension benefits related to deceased employees. She has since been charged with five counts of wire fraud. Each count carries a maximum sentence of 20 years in federal prison, but usually, the sentence is tied to the amount of money stolen and not the number of times the fraud was committed.

According to the prosecution, the defendant made requests to disburse death benefits and pension benefits to purported beneficiaries of CTA pension plans. The funds, however, were later diverted into bank accounts controlled by the defendant. The money was then used for personal expenditures.

Authorities say that the defendant made 43 death benefit or pension refund requests totaling an estimated $350,000. The defendant worked as a bus driver and later as a retirement plan specialist.

November 11, 2022

Man Receives Eight Years for Embezzlement From Employer

by Law Offices of David L. Freidberg, P.C.

A man has been sentenced to 90 months in federal prison after eight years as a fugitive in Utah. The man was charged in connection with the theft of over $2.2 million from his employer when he worked as a bookkeeper. The defendant was responsible for paying invoices to vendors, but fabricated duplicate invoices for work already paid and diverted the money into his own account. In 2012, he was caught and charged with wire fraud, money laundering, and tax evasion, but he fled the police while on house arrest. He was caught eight years later and will now serve eight years in federal prison.

The Crime of Embezzlement

What is embezzlement specifically? Well, you can steal money from anyone, but when you embezzle, you steal from someone with whom you have a duty of service, it is considered embezzlement. Companies and governments can be the victim of embezzlement. Employees and actors who operate on behalf of governments can be the perpetrators of embezzlement. Nonetheless, there is no “crime of embezzlement” under federal law. Instead, you have wire fraud.

April 28, 2021

Woman Charged with “Felony Embezzlement” After Return VHS 20 Years Late

by Law Offices of David L. Freidberg, P.C.

A Texas woman is being charged with felony embezzlement after returning a VHS tape of Sabrina the Teenage Witch, 20 years after its due date. The woman told authorities that she had never rented the tape, but at the time, she was seeing a young man with two young daughters. The tape was never returned, and now the woman is facing felony charges.

In March of 2000, the woman was charged with felony embezzlement of a rental property. However, no one went out looking for the major criminal. So 21 years later, the woman was trying to get her name changed after a recent marriage, and that is when she found out she was a wanted felon.

What is Embezzlement?

March 3, 2021

Defendants Added to Bank Embezzlement Prosecution

by Law Offices of David L. Freidberg, P.C.

More defendants have been added to an ongoing prosecution in which several key stakeholders managed to tank a Chicago bank by embezzling millions in funds. The Washington Federal Bank for Savings failed in 2017 after the Office of the Comptroller determined that the bank was insolvent. Four new defendants have been added to the case for the theft of over $23 million in bank money. Do they face the same sorts of penalties as those who rob banks by force? No. In this article, we will discuss the charges they are likely to face.

Why Was the Bank Shut Down?

The bank was shut down after the Office of the Comptroller determined that the bank had $66 million in nonperforming loans. What is a nonperforming loan? Essentially, it is a loan in which the borrower has not made a payment in some time. Hence, the loan has been in default for a while. It is believed that the executives, including the CFO and treasurer, floated themselves major loans and transferred bank funds without the required documentation. Those who were on the receiving end of these funds are facing charges. Those who were in charge of overseeing the bank funds are also facing charges. Those who falsified bank records to ensure that the embezzlement was not discovered are also facing charges.

January 27, 2021

Chicago Man Facing Charges of Diverting Relief Checks

by Law Offices of David L. Freidberg, P.C.

For as many government entitlement programs as there are, there are a number of ways to commit fraud. People commit fraud against the unemployment program, Medicaid, Medicare, food stamps, social security, and more. Aldermen commit fraud against government initiatives and then funnel the money to their own personal coffers. Now, a Chicago man is facing charges that he conspired with a post office employee to steal economic relief checks from the mail and cash them.

Akeem Kosoko, 26, is facing one count of conspiracy to steal mail and government funds, three counts of embezzlement of government property, and three counts of receipt of stolen mail. The indictment says that Kosoko conspired with his brother, who was a postal worker, who is also facing a conspiracy charge. The defendants are facing federal charges.

Theft of Government Funds

January 6, 2021

Woman Steals $2.3 Million From Employer to Fund Side Gig

by Law Offices of David L. Freidberg, P.C.

This is America, where everyone has a job and everyone has a dream. The idea is to work the job until you can make the dream come true. That happened for one Illinois woman, but federal prosecutors say that the money she used to fund her dream was embezzled from her place of employment. She is now facing federal charges for the theft of $2.3 million.

72-year-old Mildred Crowley is accused of embezzling money from her employer to fund her horse farm. She is not the first to be charged with such a crime. In fact, horse farming is rife with companies that have funded their coffers on the ill-gotten gains of fraud and theft.

Criminal Enterprises: Horse Breeding and Horse Farms

December 12, 2019

State Senator Charged With Embezzling from Teamsters

by Law Offices of David L. Freidberg, P.C.

State Senator Tom Cullerton is now facing federal charges that embezzled funds from the Teamsters. Federal authorities are accusing Cullerton of collecting a nearly $190,000 salary plus bonuses for vehicle and cellphone usage. He is also said to have taken $64,000 in health and pension contributions while doing apparently nothing for the Teamsters union.

Cullerton faced a grand jury indictment in August on one count of conspiracy to embezzle from a labor union, one count of lying about a public health matter, and 39 counts of embezzlement from a labor union.

Cullerton is one of three elected officials to face federal charges amid a federal probe into corruption in Chicago and Illinois. Cullerton has pleaded not guilty to all charges and expressed eagerness to clear his good name.

October 11, 2019

Two Gang Officers Charged After FBI Sting

by Law Offices of David L. Freidberg, P.C.

Two Chicago police officers, Sgt. Xavier Elizondo and David Salgado, are facing federal charges for obstruction of justice, lying on affidavits, and lying to the FBI. The two allegedly falsified information on search warrant petitions to judges to execute no-knock warrants in Chicago’s most dangerous neighborhoods. They are also accused of stealing drugs and money recovered from the raids.

In early 2018, the FBI set Elizondo and Salgado up. They had stolen what they believed was drug money from a vehicle that the FBI towed away. Later that day, the FBI raided Salgado’s home. Both men have pleaded not guilty to conspiracy and obstruction charges. The most serious charge against the men carries at 20-year sentence.

Search Warrants at the Heart of This Trial

November 2, 2016

Embezzlement in Chicago: Unjust Enrichment Under Public Focus

by Law Offices of David L. Freidberg, P.C.

Whenever another story comes in, there is shock from the legal and non-legal community. Even as the defendant desperately seeks an attorney; the prosecutor is working full-time to ensure a conviction and an exemplary sentence. The annals of embezzlement in Chicago include the relatively recent case of Caryn Benson, a former Field Museum employee who managed to embezzle up to $400,000 without getting noticed. Even as the case its case made its way through the courts, there was a lot of interest from the legal community in terms of establishing the technicalities of the crime and the responses of the court. Museums are normally places of leisure and cultural enlightenment. One would not expect large-scale and sustained thefts to be taking place there over a period of ten years.

Interestingly, Benson admitted to only half a million whereas the employer protested that the figure was closer to one million. In the event a compromise was reached on the understanding that the culprit would be spending some time in jail. The guidelines are in the range of 35-40 months, a penalty that some may consider to be harsh given the fact that the courts have handled cases of large scale corporate fraud that has led to the loss of millions. The aggravating circumstances in this case include the fact that the crime took over a long period of time and the defendant had been in a position of trust. The negotiation for a plea agreement is an interesting lesson for defense attorneys where the facts of the case indicate that a long drawn out trial may not yield the results that the prosecutor is looking for. This puts the defense at an advantage and in this case the attorney got the best possible deal for the client.

Understanding the Legal Ramifications of Embezzlement

September 11, 2015

Are You Being Charged With Embezzlement in Illinois?

by Law Offices of David L. Freidberg, P.C.

Embezzlement is a so-called “white collar crime” in Illinois, meaning it is the type of crime normally committed in a professional environment or workplace. Embezzlement is a type of theft that occurs when somebody who was entrusted to manage or monitor the property or money of another person steals all or part of what they were entrusted with for personal gain.

This is different from theft because in an embezzlement situation the defendant had legal access to the money or property that they are accused of stealing.

When is Embezzlement Usually Charged?