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4 arrests made in California embezzlement investigation

by | Jan 12, 2016 | Embezzlement, Firm News

When a company feels that it is losing money, executives, understandably, want answers. Unfortunately, the answer may be that the company is simply mismanaged and unsuccessful. However, a California company claims that it was actually losing money because of embezzlement conducted by its former president.

Representatives from the Federal Bureau of Investigation claim that this man and three accomplices embezzled approximately $8 million from CM Laundry, LLC. The company is owned by a designer jean manufacturer known as Citizens of Humanity, LLC, and provides finishing services for the jeans. CM Laundry’s former president is accused of conspiring with three other men to embezzle the money.

The FBI accuses his three alleged accomplices of billing CM Laundry for a certain amount of money; once paid, a portion of the money was then reportedly transferred to the former company’s president and a company he owns. In one example, a company owned by one of the accused is said to have billed CM Laundry for approximately $5.5 million. Federal investigators claim that $3.6 million was then transferred to CM Laundry’s president and the company he allegedly owns. The alleged orchestrator of the scheme faces three counts of mail fraud, while the other three defendants face one count each. Each count carries a sentence of 20 years if convicted.

Cases involving accusations of embezzlement are often complex, and the accused will often benefit from the guidance of an experienced defense attorney. Because the potential consequences of a conviction of such charges are so high, many in California are even more motivated to seek experienced legal counsel. As in all cases, these defendants are considered not guilty until proved otherwise. Often, prosecutors are unable to meet the high burden of proof necessary for a guilty verdict to be reached.

Source: imperialvalleynews.com, “Four Arrested on Federal Mail Fraud Charges Related to $8 Million Embezzlement from Southland Commercial Laundry Company“, Jan. 9, 2016