On Friday, United States Attorney Russell M. Coleman announced that the former Chief Financial Officer of Market Finders Insurance Corporation pleaded guilty to tax evasion and embezzling nearly $2,000,000 during a two-year period. 63-year-old Sylvania Rebecca Smith of Louisville, Kentucky was previously charged with one count of wire fraud for devising an embezzlement scheme to acquire funds from her employer.
It was alleged that Smith diverted the funds from Market Finders to PBS Insurance Underwriting Corporation. The defendant also faced two counts of failing to report the embezzled funds as income on her tax returns. During the time of the crime, Smith served as the bookkeeper for PBS and her husband as the sole owner of the company.
Smith admitted to generating fraudulent loan checks from Market Finders while serving as the company’s CFO. She also admitted to diverting the money into a bank account owned by PBS between July 2013 to April 2015. The defendant created fraudulent insurance financing contracts between Market Finders and clients of PBS Insurance without permission from existing clients.
She also attempted to conceal her activities by manipulating records. The defendant admitted that she and her husband used some of the money to fund her husband’s business, as well as to pay for personal expenses and gambling activities. Smith used some of the proceeds to make payments on the loans that she falsely created from Market Finders.
After the scheme was discovered, the defendant had not repaid roughly $674,093. Finally, Smith confessed that she failed to report roughly $258,504 in embezzled funds on her 2013 tax return and approximately $514,696 in embezzled funds as income on her 2014 tax return.
Smith has agreed to pay $674,093 in restitution. Smith was released on a $25,000 bond. She is scheduled to be sentenced on February 5, 2018. At that time, she will face a maximum of 26 years in prison. Additional details can be found here.