United States Attorney Leura G. Canary Middle District of Alabama

DOTHAN MAN PLEADS GUILTY TO WIRE FRAUD

Former Employee Embezzles over $367,000 from Alabama State University

MONTGOMERY, AL.—Leura G. Canary, United States Attorney for the Middle District of Alabama, announced that on May 31, 2007, James Michael Hinson, age 40, of Dothan, Alabama, pled guilty in U.S. District Court before United States Magistrate Judge Susan R. Walker to a one-count felony information charging him with wire fraud, in violation of Title 18, United States Code, Section 1343, in connection with his embezzlement of $367,000 from Alabama State University (“ASU”) in Montgomery.
According to the plea agreement and information, ASU employed Hinson as a Senior Accountant. On February 2, 2005, Hinson opened an account at Wachovia Bank in the name "ASU Auxiliary Accounting Club" using ASU's taxpayer identification number, listing himself as the president, treasurer, and authorized signatory, and using his home address in Dothan as the address of the club. In fact, there is no such club, and ASU never authorized Hinson to open this account. From February 17, 2005 through April 3, 2007, Hinson diverted to himself checks payable to ASU totaling approximately $367,730.82, and he deposited those checks into the account he had opened at Wachovia. The embezzled funds included checks payable to ASU by the State of Alabama, by businesses who owed money to ASU based on vending machine proceeds, and by persons who had purchased tickets to ASU sporting events. Hinson used the embezzled funds to pay personal expenses, including making credit card payments via interstate wire transfer.

When he is sentenced later this summer by Chief United States District Judge Mark E. Fuller, Hinson faces a statutory maximum penalty of 20 years imprisonment, an order of restitution, and a fine of up to $250,000 or, if greater, twice the loss to ASU. Hinson was released pending sentencing on a $25,000 unsecured bond.

The case was investigated by the Federal Bureau of Investigation, the Alabama Bureau of Investigation, and the Alabama State University Police. The case is being prosecuted by Assistant U.S. Attorney Andrew O. Schiff