A former operations manager for a Fresno-based trucking company has been sentenced to two years and nine months in federal prison for orchestrating a wire fraud scheme that embezzled nearly $1.6 million over seven years. The scheme, which spanned from 2012 to 2019, relied on his position of trust within the company, allowing him to fabricate over 600 invoices purportedly issued by legitimate vendors. These fraudulent documents enabled him to divert company funds to his personal bank account, where the money was used for personal expenses such as credit card payments, vacations, mortgage payments, and car loans.
The trucking company, a small business operating a fleet of 22 trucks transporting agricultural goods, began to notice discrepancies during an independent audit in 2020. Investigators uncovered that the operations manager had deleted a decade’s worth of accounts payable records to cover his tracks. However, the audit revealed his fraudulent activities, prompting his resignation before the investigation was complete.
According to court filings, the company suffered significant financial strain due to the theft, resorting to loans to maintain cash flow. The embezzled funds not only impacted the company’s operations but also betrayed the trust placed in the operations manager. Federal prosecutors highlighted the damage inflicted on the company, citing the sustained financial instability and disruption caused by the prolonged fraud.
As part of his sentencing, the manager was ordered to pay restitution equaling the amount he stole, approximately $1.6 million, to his former employer. Following his prison term, he will also serve three years of supervised release. This case underscores the importance of robust financial oversight and the risks posed by internal fraud in small businesses.
Source:
https://www.freightwaves.com/news/fresno-trucking-company-manager-sentenced-in-1-6m-fraud-scheme
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