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Embezzlement charges often accompany crimes against IRS

On Behalf of | Jan 21, 2018 | Criminal Defense |

Often, the commission of one crime in South Carolina also implicates other crimes. When a person embezzles money from an employer or organization, the activity tends to require hiding that newfound money from the Internal Revenue Service. Thus, an embezzler may not report this income, however illegally obtained, on his or her income taxes.

Just such an incident is the subject of charges against an accounting manager, according to the Post and Courier. In this case, the manager is the subject of charges of breaking federal law, including defrauding her employer and the IRS.

The company she worked for engages in community and homeowner associations management, with more than 100 clients. The manager was a longstanding employee granted significant autonomy and oversight in her accounting duties.

Diverting payments and secret bank accounts

The accusations state that she was able to abscond with payments from third parties for ancillary services her company provided because there was no recording of those payments until the deposit. She intervened with these checks before they went into the appropriate bank account. This allowed her to then deposit the checks into secretly created and unauthorized bank accounts, and she used the company’s signature stamp to draft checks to herself.

Five years of fraud and $750,000

Apparently, the manager successfully stole the money for more than five years before discovery. She took over three-quarters of a million dollars during this time. None of the stolen money has surfaced. In fact, the manager has applied for a public defender instead of retaining her own private defense attorney.

Tax evasion and wire fraud

But, as noted, those are not the only charges that arose from her scheme. Some additional charges included tax evasion for failing to report her income to the IRS and interstate wire fraud. She has pled not guilty to the charges.

It is possible that she will also see other charges, such as those related to broken state taxation and fraud laws. She could also face civil lawsuits from any people or companies damaged by her actions. Apparently, she did not take any homeowners’ dues, fortunately.