White Magic Truckmount Manufacture ROCKED by embezzlement

Nick N

Well-Known Member
May 27, 2008
4,939
129
63
Texas
www.truckmountforums.com
Thanks scott . Look at how much we have been borrowing since reagan started the cut taxes spen spend. The US has blown its load and thanks to this CHINA will become the power house of the 21st century. Between the late 1700and to 1980 the US accumalted just under a trillion dollar. reagan added about 3 trillion ,BUsh Senior about 2 trillion clinton added a trillion and the GW added about 5 trillion. Yes Obama pushed thru another trillion . So you see the biggest offenders were republican's who did it all for country . Because of this we are now haveing major problems and the loss of our mfg base.
 

shane deubell

Premium VIP
May 8, 2006
21,650
6,246
113
Real Name
.....
Business Location
United States
I feel bad for white magic or any company that it is a victim of fraud and theivery. It can happen to anyone and does, thats why we call them criminals. The only thing you can do is put as many internal controls as possible to protect yourself and check,check,check same as quality control.

Really Nick catch up on your facts, your really naive on this one.
 

rob allen

Administrator
Staff member
Administrator
Sep 5, 2007
38,521
19,879
113
Va.
www.drynclean.com
Real Name
Robert Allen,Jr.
Business Location
United States
I feel bad for white magic or any company that it is a victim of fraud and theivery. It can happen to anyone and does, thats why we call them criminals. The only thing you can do is put as many internal controls as possible to protect yourself and check,check,check same as quality control.

Really Nick catch up on your facts, your really naive on this one.

I agree with you Shane to a point. If you could see all the emails, pms' and listen in on the phone calls from people who bought lemons you would be shocked. Many mom and pop operations went out of business due to poor service and refusal to help when tm's failed. I feel more sad for these poor ones. It was heartbreaking. So the adage what you sow is what you reap came into effect. Too bad.
 

Ryno

New Member
Apr 14, 2009
437
0
0
Arkansas
Real Name
Ryan Jackson
Business Location
United States
Nick I don't think its very smart of you too argue politics on a public forum when you sell truck mounts. How many guys that don't agree with you politically will not consider your truck mounts because of the opinions you post?

it started under BUsh and reagan. Joe go look reagan really pushed , clinton signed a pice of legislation on his last day. Joe could you give us the numbers on what the national debt was when reagan took office? then for each president there after?

You can't just look at the national debt. You have to take the GDP (Gross Domestic Product) and compare it to the national debt. The U.S. is in more debt dollar wise then any other country, however our debt divided by our GDP is much less then several other countrys. When you look at debt this way, the United Kingdom has the lowest effective net worth per citizen. Somthing to think about the Uk has socialized medicine and and hundreds of other liberal ideas incorporated into their goverment.
 

rob allen

Administrator
Staff member
Administrator
Sep 5, 2007
38,521
19,879
113
Va.
www.drynclean.com
Real Name
Robert Allen,Jr.
Business Location
United States
Agreed Ryan. Please stick to topic or your reply will be deleted or edited.

Rob Allen
Admin
 

dsimms

New Member
Jun 17, 2009
332
0
0
MN
Real Name
David Simms
Business Location
United States
:confused: How does a company that big let that go on for that long without catching on... That is a lot of money to over look... Green Magic

Improper management - they obvisously did not have a checks and balances in place.. this is why this is important that
you audit your company records fairly offten...you are hearing more and more about these type of crimes on the news...if you are in control of the finances, then who controls you? this is how they get away with it for so long...I bet you if every business did an audit there would be a lot more people going to jail...

I just heard on the news that a local women drained $60k from a business because she was the one in control, she is going to jail, and the public donated $80k+ back to the business, and she used all the money on drugs...
 

Jeff Madsen

Active Member
Sep 7, 2009
362
48
28
Lincoln, Ne
lincoln-area-rug-cleaning.com
Real Name
Jeff Madsen
Business Location
United States
Nick I don't think its very smart of you too argue politics on a public forum when you sell truck mounts. How many guys that don't agree with you politically will not consider your truck mounts because of the opinions you post?



No, no, no - don't you know it's all Greenie's fault that his business is down. It couldn't possibly be his acerbic, contentious, over-bearing, obnoxious personality. Nope, it's all Greenie's fault. :rolleyes:
 

Jeff Madsen

Active Member
Sep 7, 2009
362
48
28
Lincoln, Ne
lincoln-area-rug-cleaning.com
Real Name
Jeff Madsen
Business Location
United States
but what do you know . .

I only know what I see you post day after day after day after day after day after day ad nauseum. I'm happy for you if your business is doing well - I wouldn't wish it otherwise for anyone. BTW, despite other folks frustrations with Greenie, I don't see them behaving in the same fashion as you on the boards. I wonder why?
 

Rick Imby

Well-Known Member
Jul 2, 2009
3,571
1,247
113
Montana
www.missoulagreencarpetcleaning.com
Real Name
Rick Imby
Business Location
United States
Agreed Ryan. Please stick to topic or your reply will be deleted or edited.

Rob Allen
Admin

So Nickwit is the one that has pushed this off topic---Delete him.

It is very painful when you are stolen from. I caught a kid that worked for me (bicycle shop) stealing and $800 cash sale. I had been really good to him. People will and can justify anything. I would bet She was probably treated very well, As a trusted part of the family.....

The ones you would never suspect will steal the most.
 

rob allen

Administrator
Staff member
Administrator
Sep 5, 2007
38,521
19,879
113
Va.
www.drynclean.com
Real Name
Robert Allen,Jr.
Business Location
United States
S...



The ones you would never suspect will steal the most.

Sad but true many times Rick. I just had a relative steal 50,000 dollars from his grandmother and take off. :mad:
 

rob allen

Administrator
Staff member
Administrator
Sep 5, 2007
38,521
19,879
113
Va.
www.drynclean.com
Real Name
Robert Allen,Jr.
Business Location
United States
White Magic Update. I see Paul Richardson is suffering. I know how he feels.
Note to the wise: Always keep close tabs on my finances, book keeper and accountant.

Embezzler forces firm to lay off 25 Salisbury employees saddened, angered over $450,000 scam
By Katie Curley Katzman
Staff writer


SALISBURY — White Magic employees say they are holding out hope that justice will be served come March, when a former employee will be sentenced for a scam that nearly put the local carpet cleaner out of business.

Federal authorities charged Victoria Jordan, 32, with 15 counts of wire fraud after they found that during a nearly four-year period, she inflated her $52,000 salary and stole $450,000 from her employer. She pleaded guilty last month and will return to federal court in March for her sentencing. Jordan faces up to 20 years in jail and a $250,000 fine for each count.

"She hurt a lot of people, and a lot of people got laid off because of it," said John Duda, who is in charge of the company's technical services. "We are in a horrible position of debt now because of her. She basically used White Magic as her own personal bank."

Duda said the once 35-strong Main Street company is down to just 10 employees today.

"In its heyday, we were really strong, but she left us in ridiculous debt," Duda said.

Jordan inflated her salary as chief financial officer to embezzle from the company, according to court documents. She also added her husband to the payroll despite the fact he was not an employee of the company, cashed checks drawn on company accounts, made unauthorized purchases of personal items with the company credit cards and used company funds without permission to pay for a life insurance policy, personal cell phones, individual retirement account deposits and fraudulent mileage reimbursements.

Federal authorities allege Jordan paid herself, $83,850 in 2004, $97,194, in 2005, $126,000 in 2006, $151,941 in 2007, and in the first 10 months of 2008, took home $207,000. After placing her husband on the payroll, she collected another $38,000. Her husband has not been charged.

Federal wire fraud charges came into play because Jordan obtained her salary through Automated Clearing House transactions that funneled through a Minnesota office, according to court documents.

Court documents indicate federal authorities want Jordan to give back any and all money and property taken from White Magic.

Duda said Jordan was not a well-liked employee and often showed up with new cars, snowmobiles, Hummers and Harley Davidson Motorcycles and cell phones. Her annual holiday light display outside her home was once voted second place in Salisbury.

"It was up again this year," Duda said, adding he feels White Magic should put a sponsorship sign on her lawn. "White Magic paid for all that."

Duda said the real person who has paid is founder and owner of the company, Paul Richardson.

Richardson, who now runs the business from out of state, started White Magic in 1980 as a carpet cleaning service and distributor. In 1983, Richardson began manufacturing truck-mounted carpet cleaning and upholstery equipment.

Duda said Richardson trusted Jordan with all the finances and never checked the books. When Richardson was in the hospital for over a year suffering from injuries sustained in a motorcycle accident, Duda said Jordan ramped up the theft by giving Richardson false financial reports and using company money to pay her own living expenses.

"Paul put everything he had into this place," Duda said. "He hasn't been able to retire now. He put himself in debt so we can try to dig ourselves out of this hole she left us in."

During Jordan's time as CFO, White Magic international sales manager Dan Jolly partnered with Jordan to buy the business from Richardson, as Richardson hoped to retire. White Magic employees now believe she wanted to buy the company in order to cover up what she had been doing.

"I was probably one of the closest to her," Jolly said. "I knew she was rough, but I didn't know she was a thief."

Jolly partnered with Jordan, securing a loan and working with financial consultants. It wasn't until they were 30 days away from purchase that the charges were made public.

"Paul had looked me in the eye and said I couldn't trust anyone more with the finances," Jolly said. "He hadn't looked at the books in years."

Under the plan, Richardson was going to hold paper on the business and become a half partner.

When authorities got involved, Jolly found himself with a $10,000 loan and no business to make the payments.

"It took me thousands to get into the deal to buy and thousands to get out," Jolly said.

Jolly, has had to open a business on the side, Powder Max in Eliot, Maine, in efforts to get out of debt.

"I took a 13-week layoff from White Magic and had to take money out against my home," Jolly said. "She has me working 70 hours a week, and I have kids."

Jolly said that eventually he hopes to either make a move into the powder coating business full time or sell Powder Max and pay the loan off.

Since Jordan's embezzlement has come to light, White Magic owner Richardson has hired outside auditors, and Duda has worked to install all new accounting software.

"She made such a mess, we basically had to start over," Duda said.

Jolly as well as other employees plan to go to Jordan's sentencing hearing on March 9.

"We're not going to start trouble. We just want to see her off," Jolly said. "The best thing we can do is make sure White Magic stays open. I made sure to send her a brochure to my powder coating business when I opened it."

'A sad case'

Salisbury police Chief David L'Esperance said he found out about the thefts after the owners of the company approached him last year with serious concerns about Jordan, whom they considered to be a "trusted employee."

Because the money was allegedly sent over state lines, federal authorities were brought in to work with Salisbury Detective Mark Thomas.

"This was a sad case of a family business that entrusted someone with operational control over their assets, and this woman made a very poor choice," L'Esperance said yesterday. "We've spoken to the victims, and they are trying to rebuild. We wish them well."

L'Esperance credited the United States Attorney's office, the U.S. Secret Service and Salisbury Detectives for a thorough job in the investigation.

"We are happy this case is coming to a close," he said.
ShareThis PrintThis
 

rob allen

Administrator
Staff member
Administrator
Sep 5, 2007
38,521
19,879
113
Va.
www.drynclean.com
Real Name
Robert Allen,Jr.
Business Location
United States
My wife Sandee and I drove all the way up there in a company van to get a machine repaired that no one could fix. Unfortunately it was in vain. The machine imho was over engineered and not field tested. Not even my local distributor could fix the White Magic. We lost almost 5 days downtime on that 12 hour one way trek. We waited on Paul who finally drove up on his motorcycle. He gave us 300.00 cash to help offset our expenses. This didn't come close to the 1000.00's that we lost.

We then drove it to Florida to get John at HHX's to repair it. He figured out that the "heat proportioning valve" was causing most issues on the 25k unit I had purchased and that no one was able to fix. After it was removed the machine has ran better but it did end up catching on fire and almost burned my box truck up. Fortunately I was by an auto parts store and they had ample fire extinguishers. However after I told them how we repaired the unit we shortly got a letter from them that the new units would no longer have a "heat proportional valve". A little late but still good for anyone buying the unit in the future.

Lesson learned, never buy one of the first units that roll off an assembly line. Also if you run a company, keep close tabs on the business or it may not be ran the way you intended it.

Rob Allen
 

Kev Berry

Member
Nov 7, 2009
611
0
16
Rancho Mirage, Cailfornia.
Real Name
Kevin Berry
Business Location
United States
I dont like to get hung up on political or pseudo economic theories but without qualifying the terms under which you are arguing really makes your point irrelevant. How are you determining the 'effective net worth' , and could you please elaborate on the hundreds of liberalized ideas. If you are looking purely at the ratio of the national debt to gross domestic product America is #22 in the world, Great Britain is #4 and Ireland holds the number 1 spot.
 

rob allen

Administrator
Staff member
Administrator
Sep 5, 2007
38,521
19,879
113
Va.
www.drynclean.com
Real Name
Robert Allen,Jr.
Business Location
United States
Looks like the sentencing has been done. How is she going to pay back 615k from behind bars? If anyone stole or attempted to steal 1000's from my company my wife would be on them like white on rice! :cool:

White Magic Embezzler sentenced to 3 years
Ordered to repay $615K



SALISBURY — A woman who embezzled $615,000 from her Salisbury employer was sentenced in U.S. District Court in Boston yesterday to three years in prison and ordered to pay full restitution to the victims.

In December, Victoria Jordan, 33, of Salisbury, pleaded guilty to 15 federal counts of wire fraud after prosecutors said she inflated her $52,000 salary and stole $450,000 from Salisbury-based carpet cleaner White Magic over a four-year period.

Jordan, also known as Victoria Lake, will spend 36 months in prison upon self-reporting in July, with three years' supervised probation upon release.

Jordan's attorney, John R. Valerio, argued that the court should impose a sentence that allows Jordan the opportunity to remain employed, in order to be able to pay restitution to White Magic. Court documents showed Jordan and Valerio requested a sentence of five years' probation, followed by five years of supervised release.

Jordan also requested through her attorney that the court allow her to serve her sentence as close to Massachusetts as possible, because her 14-year-old son and family live in the area.

The United States attorney requested a sentence of 33 months' incarceration, to be followed by three years of supervised release, a fine of $7,500, and restitution in the amount of $615,000, and other payments.

According to court documents, Jordan inflated her salary as chief financial officer to embezzle from the company from January 2004 to November 2008. She also added her husband to the payroll despite the fact he was not an employee of the company, cashed checks drawn on company accounts, submitted fraudulent mileage reimbursements, made unauthorized purchases of personal items with company credit cards, and used company funds without permission to pay for a life insurance policy, personal cell phones and individual retirement account deposits.

Federal wire fraud charges came into play because Jordan obtained her salary through Automated Clearing House transactions that funneled through a Minnesota office, according to court documents.

Federal authorities said Jordan paid herself $83,850 in 2004, $97,194 in 2005, $126,000 in 2006, $151,941 in 2007, and in the first 10 months of 2008, took home $207,000. After placing her husband on the payroll, she collected another $38,000. Her husband has not been charged.

In total, Jordan's scheme caused a loss of more than $615,000 to White Magic over a four-year period, according to court documents. She was ordered to pay back all $615,000 to White Magic owners.

According to court documents, White Magic's owner/president, Paul Richardson, said Jordan's fraud caused employees of the company to be laid off, assets to be liquidated, and the owners have borrowed money to lend to the company and have put their Massachusetts residence on the market.

"After working and saving my entire life to build up a company, my hopes of being able to retire some day are crushed," he stated in court documents. "At the age of 66, I am faced with the reality that I may lose my home, my business, everything I have worked so hard to achieve."