Tuscola woman charged with embezzling $300,000 from Urbana business
URBANA — A Tuscola woman has been indicted in connection with embezzling more than $300,000 from a rural Urbana farm machinery company where she worked, and with filing false income tax returns.
On Thursday, a federal grand jury indicted Karyn E. Graham, 43, who listed an address in Tuscola, with one count of wire fraud and four counts of filing a false income tax return.
If convicted, Graham faces up to 20 years in prison and a fine of up to $250,000 on the wire fraud count and up to three years in prison and a fine of up to $100,000 on each of the three filing a false income tax return counts.
According to the indictment, Graham used her position as the accounting manager at Shaff Implement and Shaff Machinery Co. to divert more than $300,000 from the business for her own use from 2006 to early 2010.
The indictment said Graham used the company's credit card to make about $147,000 in personal purchases and used Shaff's Sam's Club Card to make personal purchases totaling more than $51,000. It alleged that Graham wrote unauthorized checks totaling about $69,000 to herself or other persons.
It alleged she paid about $16,000 to her personal credit card accounts, deposited more than $12,000 into her personal bank accounts and used more than $8,500 to pay her personal cellphone account.
In addition, the indictment alleges the Tuscola woman failed to report the money she had diverted from the Shaff's accounts in her federal income tax returns for 2006, 2007, 2008 and 2009.
According to the indictment, Graham allegedly left out $14,079 from her 2006 tax return; $25,318 from her 2007 tax return; $162,394 from her 2008 tax return and $141,460 from her 2009 tax return.
The indictment alleges Graham owes an estimated $103,201 in additional taxes for the four-year period.
U.S. attorney's office spokeswoman Sharon Paul said the case was investigated by the Internal Revenue Service Criminal Investigation Division and the Champaign County sheriff's office.