A former vice-president of operations at Nittany Paper Mills in Lewistown, Pa., has pleaded guilty to a wire fraud charge after the company discovered a two-year trail of improper transactions.
It was a multifaceted scheme. The executive admitted charging personal purchases to the company credit card, according to the criminal complaint. He also allegedly initiated electronic transfers from the company’s checking account to pay off his personal credit card and diverted funds to bank accounts established in his children’s names.
Plus, he paid himself additional salary and bonuses. He sold Nittany inventory off-the-books and pocketed the proceeds, as well as authorizing fraudulent payments for personal expenses.
In all, the criminal complaint claims the man stole $218,098 from the company. If the judge in the case accepts the plea deal, the executive could face as much as 20 years in prison, in addition to making restitution.
Advice: Require all purchases to be authorized by two people. Hire an outside firm to perform annual financial audits.