Woman sentenced to prison in federal wire fraud, tax case

Woman sentenced to prison in federal wire fraud, tax case

URBANA — A Tuscola woman who admitted stealing hundreds of thousands of dollars from the Urbana company where she worked has been sentenced to prison and ordered to pay restitution and back taxes.

U.S. District Court Judge Michael McCuskey on Tuesday ordered Karyn E. Graham, 44, to serve 33 months in prison for wire fraud and filing a false tax return. She pleaded guilty in September to those crimes. She was indicted a little over a year ago.

The charges alleged that while employed as the accounting manager at Shaff Implement and Shaff Machinery Co. in Urbana, Graham stole more than $343,000 from the business between 2006 and early 2010.

According to Graham's plea agreement, she used Shaff's money to write checks to herself and others and to pay her own bills. She also used business credit cards at Sam's Club and Staples, for example. She then made false accounting entries to cover the thefts, the agreement said.

The agreement said by not reporting as income all the extra money she had coming in from the thefts, she owed the IRS another approximately $103,000 in taxes.

Graham had no prior criminal convictions and based on sentencing guidelines faced between 33 and 41 months in prison. Assistant U.S. Attorney Eugene Miller recommended the 33 months.

In addition to prison, McCuskey ordered Graham to pay a $500 special assessment and $446,451 in restitution. The restitution goes to Shaff, the insurance company that covered $100,000 of Shaff's loss, and the IRS.

Graham is need of knee replacement surgery and was allowed to remain free to get that done. McCuskey set a hearing for July 24 to determine what condition she's in and when she can report to prison.

She'll have to serve three years of supervised release after she gets out of prison.

Graham was represented by Champaign attorney Jim Martinkus.

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