An Ohio man worked as a project manager from 2006 to 2017 for California-based Natus Medical, Inc.
In 2016, he began submitting false reimbursement requests to his employer on which he claimed he had travel expenses that he paid for out of pocket. According to investigators, the employee frequently requested reimbursement for fake airline tickets he created using editing software.
The employer deposited reimbursement money directly into the manager's bank account until the fraud was discovered. Court documents show that he requested reimbursement for more than 1,000 fraudulent expenses totaling $517,737.
The employee also used his company card's credits for personal expenditures, paying for his side business, and transferring money to his spouse's PayPal account.
According to the U.S. government, the employee did not include the embezzled funds as income or report the gross receipts from the side business he formed. In total, he failed to pay $175,774 in taxes from 2013 through 2017.
The IRS-Criminal Investigation Unit's investigation found the 39-year-old man had committed tax fraud.
The defendant recently pled guilty in U.S District Court to filing a false income tax return and wire fraud. He faces a maximum penalty of three years in prison and a fine not to exceed $250,000 for filing a false income tax return as well as a maximum penalty of 20 years in prison and a fine not to exceed $250,000 for wire fraud. "Hamilton man pleads guilty to embezzlement, tax fraud" www.cincinnati.com (Jan. 05, 2022).