ST. LOUIS – In a ruling on Friday, a U.S. District Judge sentenced the former CFO of a St. Louis County-based company to 41 months in prison for embezzling $5 million from his employer over a period spanning five years. In addition to the prison sentence, the judge also ordered the former CFO to repay the full amount of funds misappropriated from the company.
The embezzlement scheme, which began around January 2019 and continued until January 2024, involved a series of over 1,000 unauthorized transactions conducted by the former CFO. By accessing his employer’s bank accounts, he made payments to cover the balance of his personal credit cards. The embezzler routinely charged significant amounts to his cards every few days or weeks, racking up thousands of dollars in personal expenses. Among the items purchased were vacations, travel, household bills, and even gold and other precious metals.
To avoid detection, the former CFO took careful steps to conceal his activities, manipulating the company’s accounting records to create a cover-up. This included generating fake work orders and false bills to account for the missing funds, giving the appearance that the transactions were legitimate business expenses. Additionally, he used the company’s credit cards directly for personal purchases, further deepening the financial impact on his employer.
After waiving a grand jury indictment, the former CFO pleaded guilty in August in the U.S. District Court in St. Louis to a single count of wire fraud. In issuing the sentence, the judge noted the significant betrayal of trust involved in the case and the financial harm inflicted on the business.
The investigation was conducted by the FBI, with support from the Maryland Heights Police Department, and was prosecuted by an Assistant U.S. Attorney. This case highlights the importance of internal financial controls and oversight, as well as the severe consequences of corporate fraud for individuals who misuse their positions for personal gain. The former CFO’s sentencing underscores the justice system’s commitment to addressing corporate fraud and holding individuals accountable for actions that impact businesses and communities alike.