State v. Mr. F (DMC No. 16417) – Felony Fraudulent Schemes ($1,760,000), and Felony Theft (with Prior Felony Conviction for Theft and Embezzlement, While on Probation) – Reduced to Money Laundering (with 8 Years and 3 Months Actual DOC) – Maricopa County Superior Court (Case No. CR2019-001468)
Mr. F worked for a local landscaping company, that sold off 30% of its ownership to three separate people in a separate entity. Mr. F was to manage all customer accounts, including accounts receivable and accounts payable. Unbeknownst to the landscape company, Mr. F had a Prior Embezzlement/Theft Conviction for unauthorized cashing of $23,000 worth of checks, which resulted in a Class 6 Felony and Probation (which he was currently on). After one of the owners had noticed that partial payments were not being posted, they informed Mr. F he would no longer be responsible for accounts receivable. Shortly thereafter, Mr. F resigned and stated “I wanted to let you know that I will be leaving the company today. Thank you for everything you have done for me. I want to apologize for everything. I am truly sorry”. The next day it was discovered that customers were sending in checks for their invoices, and instead of being deposited into the company’s new account, they were being deposited into the old company’s account.
As the investigation ensued, it was then discovered that Mr. F was forging the owner’s signature from the old account, and then the money would be removed, and then the invoices would be completely deleted, thereby removing all evidence that work was ever completed for the customer. This was labeled a “Complex Lapping Scheme”, which involved 627 checks totaling $1,760,748. Mr. F was subsequently indicted for Fraud Schemes and Theft/Embezzlement. It was at that time he secured the services of DM Cantor.
We immediately obtained a copy of his Prior Criminal Conviction, and of his Probation terms and Sentence. We also brought in a Mitigation Specialist, who received all of Mr. F’s prior health records and interviewed numerous family members. Because of his pending Divorce, he began a self-destructive life cycle, and began Embezzling money. Ultimately, at a Settlement Conference, we were able to convince the Prosecutor to extend an offer of 4.5 to 12 years of DOC, contingent on the Judge’s Sentencing. At the Sentencing, the Judge gave a mid-range Sentence which included 8 years and 3 months of Actual DOC time. Initially, if Mr. F had gone to Trial and was Convicted of both Charges, he could have been Sentenced to a Maximum term of almost 30 Years in Prison.
