Ex-construction CFO pleads guilty to wire fraud stemming from $890K embezzlement scheme

Dive Brief:

The former CFO for construction equipment provider Indeco North America pled guilty to a charge of wire fraud stemming from an $890,000 embezzlement scheme, the U.S. Attorney's Office for the District of Connecticut said in a Friday press release.
Charles Ameer, 64, served as CFO for the Milford, Connecticut-based Indeco, a wholly owned subsidiary of Italy's Indeco S.P.A., for six years until February 2022, according to court documents. Between October 2018 and July 2022, Ameer created 14 checks totaling $850,000, which were “drafted on Indeco’s bank account and made payable to him,” according to the press release.
Ameer pled guilty to one count of wire fraud stemming from the charges, a plea which carries a maximum sentence of 20 years in prison. U.S. District Judge Stefan R. Underhill scheduled his sentencing for June 20.

Dive Insight:

Ameer, a certified public accountant, first joined Indeco in 2016 as its controller. He deposited the $850,000 drawn from the 14 checks into a personal bank account at Fairfield County Bank and used the funds for personal gain, according to the court.

Ameer was able to draw the checks, which he did without the knowledge or permission of Indeco, because he was a signer on the company’s accounts according to an affidavit included in the court filings.

“Ameer stated that he did this because of financial problems he was experiencing, but he wanted to repay the funds to Indeco over a period of time,” the affidavit, written by Patrick C. Daly, special agent for the Federal Bureau of Investigation, states. Ameer made these statements during an interview with Daly and another FBI special agent in July prior to Ameer’s indictment, according to the affidavit.

As well as the 14 checks drafted from the construction equipment supplier, Ameer also misappropriated funds from the Weston Soccer Club, where he served as treasurer from 2014 until February 2018.

Starting in 2016, Ameer misappropriated at least $38,500 from the WSC and used the funds for personal expenses, per the Friday release. In 2017, he issued a check for $40,000 drawn on Indeco’s bank account at Citizens Bank made payable to WSC, and then used the money to reimburse the soccer club for the funds he had taken previously, according to court filings.

Ameer then opened a line of credit in the WSC’s name without the club’s authorization at a bank, and transferred funds into the WSC’s account to conceal his theft. He was arrested on a federal criminal complaint in August and indicted in November by a federal grand jury for three counts of wire fraud.

As well as potential time in prison, Ameer also agreed to pay restitution of $890,000, according to his plea agreement with the district court. The offense also leaves Ameer subject to an alternative fine provision, requiring him to pay a fine totaling either; “(1) twice the gross gain to the defendant resulting from the offense; (2) twice the gross loss resulting from the offense; or (3) $250,000,” according to the plea agreement.

The District of Connecticut’s office declined to comment further beyond the details included in the court filings. Indeco and Audrey Felsen, an attorney for Koffsky & Felson representing Ameer, did not immediately respond to requests for comment.