A former Swift employee has been sentenced to 56 months in prison and ordered to pay $2.2 million after he embezzled $1.65 million from the company.
David Reynolds was an IT network engineer for the carrier. As part of his job, he was given two company expense cards and had the power to hire third-party contractors.
Just six months after he was hired he started using the company cards for personal purchases. He would create fake invoices for items including TVs, cell phones, and computers – but also for items like furniture and gun accessories. Over the course of three years he racked up a bill of $865,000 spent on personal items.
After a few months of using company credit cards, Reynolds created a shell company, PGN Solutions LLC. He then “hired” the company to do third-party contracting work for Swift. He would generate fraudulent invoices and have Swift pay his company. By the time he was arrested, PGN had collected $800,000 from Swift.
His fraud was discovered after a joint investigation by the IRS and FBI. Reynolds owed $355,720 in taxes based on his fraudulent income that he never paid.
As part of a plea deal, Reynolds pled guilty to mail fraud, wire fraud, tax evasion, and transactional money laundering.