(CN) – Federal prosecutors indicted three for embezzling more than $1.2 million from a New Mexico company that disposes of oilfield waste.
The 26-page indictment names Michael G. Patterson, 59, of Green River, Wyo., and Donna Roach, 40, and Kelly Roach, 46; both of Eunice, N.M. The trio allegedly stole from their employers at Eunice-based Sundance Services Inc. between 2005 and 2008.
Donna Roach, who was Sundance president from 1998 to 2008, was charged with one count of conspiracy to commit wire fraud, 36 counts of wire fraud, one count of conspiracy to commit money laundering and 17 counts of money laundering. Her arraignment is scheduled for Tuesday.
Kelly Roach, who worked as plant manager, was charged with one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of conspiracy to commit money laundering and six counts of money laundering. He pleaded not guilty on May 25.
Patterson, a former Sundance sales manager, was charged with one count of conspiracy to commit wire fraud, five counts of wire fraud, one count of conspiracy to commit money laundering and six counts of money laundering. His arraignment is also scheduled for Tuesday.
Prosecutors say that the trio actively managed Sundance from 2005 to 2008 while its owner lived abroad and distant from the company’s day-to-day operations. Donna Roach allegedly had sole responsibility for Sundance’s payroll, bookkeeping, accounting and human resources.
During this time, the defendants embezzled company funds for personal use in four ways, the indictment alleges.
First, Donna Roach and Patterson allegedly created a fictitious construction company that received $752,689 through phony invoices for services that were never performed.
Second, Donna Roach allegedly issued and signed unauthorized paychecks and bonus checks from company accounts that were made payable to the trio.
Third, the Roaches allegedly used company credit cards for personal expenses, including Carnival cruise vacations, expensive furniture and elective surgery for Donna Roach.
Fourth, Donna Roach allegedly issued and signed numerous checks to pay third parties for personal expenses that she and the others incurred, such as construction of the Roaches’ home.
Prosecutors are demanding the return of $1.24 million in cash, an ice machine, a recreational vehicle, a sport utility vehicle, a Camaro sports car, a Harley Davidson motorcycle and real estate in Eunice.
The defendants face up to 20 years in federal prison and $250,000 in fines on the conspiracy to commit wire fraud and wire fraud charges; 20 years and $500,000 on the conspiracy to commit money-laundering charges; and 10 years and $500,000 on the money-laundering charges.