White Magic Truckmount Manufacture ROCKED by embezzlement

rob allen

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True Frank but one has to admit it is difficult to run a company from out of town. It is sad that the owner has to sell one of his houses to cover the loss's. :rolleyes:
 

rob allen

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White Magic employee reactions;

Company reels from employee's theft of $615k

SALISBURY — Employees of Salisbury-based carpet cleaner White Magic say they are satisfied with the three-year imprisonment sentencing of a former employee who embezzled $615,000 from the company.

Though they don't expect to see the money she was ordered to pay back anytime soon, employees say the business is trying to move on.

According to court documents, Victoria Jordan, 33, of Salisbury, 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.

"Anybody can make a mistake," office manager Karen Beckman said. "But I personally feel she had plotted this — it was over a four-year period."

"I'm glad the justice system didn't let me down," service manager John Duda added. "I was a little nervous that she'd get off — her attorney was trying to tell everyone how sorry she was for the hurt and damage that she caused, but I don't believe that for one second. The only thing she's sorry about is getting caught."

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.

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

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.

Three White Magic employees attended Tuesday's sentencing of Jordan in U.S. District Court in Boston, according to Beckman, company owner Paul Richardson's sister-in-law.

Jordan was sentenced to 36 months in prison upon self-reporting in July, with three years' supervised probation upon release, and ordered to pay $615,000 restitution to White Magic.

According to court documents, owner/president Paul Richardson said Jordan's scheme caused company layoffs, assets to be liquidated, and the company's reputation to be damaged. It stated the owners have borrowed money to lend to the company and have put their Massachusetts residence on the market. Richardson, who delayed retirement because of the matter, also stopped paying himself a salary.

"Hopefully, she realizes how many people she hurt," Duda said. "I don't wish anything bad upon anyone, but she definitely deserves jail time for what she did to everyone — all employees, past and present. A lot of people lost jobs because of this."

Jordan and her attorney, John R. Valerio, requested a sentence of five years' probation, followed by five years of supervised release, so that Jordan could remain employed and pay the restitution to White Magic.

"When we found out she wanted the mercy of court to just give her probation, we were shocked," Beckman said. "Thank goodness (the judge) didn't do it."

"The judge kind of said he wanted to set a precedence," Duda added. "Hopefully, this will be a deterrent to stop people from doing this in the future."

Though Jordan was ordered to pay full restitution to the owners, Beckman doesn't believe they'll see the money anytime soon, because Jordan will be in prison for three years and upon release, will have a felony on her record.

Regardless, White Magic is bouncing back — they've since repaid about half the debt Jordan left them in, Beckman said.

"It's been a struggle, but we're getting back on our feet," Beckman said. "It's by the grace of God that we've been open these two years — the cash flow has been so low, and the economy's bad."

Duda said a lot of the company's vendors and distributors have been understanding and have worked with them through the ordeal.

"We've done a hell of a job keeping this place rolling and getting us back up to where it was before," Duda said. "I can speak for everyone here — we want to put the whole issue behind us, move on with our lives and continue to grow this business."
 

JDS87

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White Magic truckmounts has been embezzled out of 450,000.00 says reports Angeljean Chiaramida of The Daily News of Newburyport, Mass.
How ironic, the company that spurred me to start Truckmountforums when they sold me a first run machine that they we're unable to repair, that they would not replace. I ended up spending almost 20k on top of the 25k I spent for the machine to get it right. Though I wish nothing bad on anyone it is surely true, what you put out comes back to you. Talk about poetic justice.





http://www.allbusiness.com/legal/legal-services-litigation/13173213-1.html

Oct. 9--SALISBURY -- A Salisbury woman is facing charges in federal court that she used her position as CFO of a local company to embezzle more than $450,000 from her Salisbury employer.

Victoria A. Jordan, 32, faces 15 counts of wire fraud. Federal authorities say Jordan scammed the money from White Magic, a company that provides carpet cleaning chemicals and equipment to cleaning firms.
Acting United States Attorney Michael K. Loucks and Steven D. Ricciardi, special agent in charge of the U.S. Secret Service, allege that during a nearly four-year period, Jordan, an accountant and chief financial officer of the company, defrauded her employer by inflating her $52,000 salary and other compensations, placing her husband, who wasn't an employee, on the company's payroll; cashing checks drawn on company accounts; making unauthorized purchases of personal items with company credit cards; and using company funds without permission to pay for a life insurance policy, personal cell phones, individual retirement account deposits and fraudulent mileage reimbursements.

If convicted in federal court, Jordan faces up to 20 years in jail and $250,000 for each count.

Salisbury police Chief David L'Esperance said 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.

"White Magic is a well-known local business whose owners have worked hard to build it up," L'Esperance said. "It's a shame."

According to federal court documents filed in U.S. District Court in Boston yesterday, Jordan worked for White Magic from 1999 to November 2008. During her tenure, she managed all the company's finances, including payroll, and received a salary of $52,000 for her last five years of employment there, with no annual raises.

Investigated by the United States Secret Service, federal officials charge she embezzled money from January 2004 to November 2008. Through the payroll system, they charge she secretly inflated her salary through unauthorized increases in her base salary, overtime, vacation pay and other compensation.

For example, 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.

She placed her husband on the payroll and collected another $38,000. Her husband has not been charged.

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

Almost $38,000 in fraudulent payroll payments to her husband involved the same fraudulent wire transactions, according to court documents.

If convicted, court documents indicate federal authorities want Jordan to give back any and all money and property taken from White Magic.


This is KARMA!
Buddhists believe that if you do something bad to someone it comes back at you times ten.
 

kineard

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I can't believe people still think they can get away with stuff like this. You will get caught every time in the long run.

No actually it is easy to still with out getting caught and most don't. The bigger the company the easier it is to do.
People only get caught when they get greedy.
We have all done it. A pen here a tool there what ever it is.
Employee theft is a huge problem for companies.
If you are going to have employees dealing with money you better have some checks in balances in place.
 

Steve Toburen

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No actually it is easy to still with out getting caught and most don't. The bigger the company the easier it is to do... Employee theft is a huge problem for companies. If you are going to have employees dealing with money you better have some checks in balances in place.
Absolutely. So sad but those of you who have employees need to live in the Real World. I call it "helping honest people stay honest" by adding Employee Accountability. In fact, this is such an important subject we developed a how-to manual for our SFS members called "Adding Employee Accountability to Your Company". Given that it is such a prevasive problem Jon-Don has now authorized its release to all cleaners. You don't need to have attended SFS to access the free download right here:

http://sfs.https://shop.truckmountf...dding-employee-accountability-to-your-company

I would appreciate any suggestions on improvements to the material.

Thanks,
Steve
www.SFS.https://shop.truckmountforums.com.com

PS Obviously part of your success is avoiding hiring th elosers in the first place. I see that Chuck Violand just posted a great article on "How NOT to Hire Carpet Cleaning Techs". Check it out (no registering is required) here:

http://sfs.https://shop.truckmountforums.com.com/5556/blog/how-not-to-hire-carpet-cleaning-techs
 
No actually it is easy to still with out getting caught and most don't. The bigger the company the easier it is to do.
People only get caught when they get greedy.
We have all done it. A pen here a tool there what ever it is.
Employee theft is a huge problem for companies.
If you are going to have employees dealing with money you better have some checks in balances in place.

A pen is not 6 figures. You steal 6 figures, it'll get noticed eventually.
 

shane deubell

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As your run of the mill cynic, i never trust other people with my money. Its biological people just cannot stop themselves. not even relatives and definitely never employees
 

rob allen

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