FOR IMMEDIATE RELEASE	CONTACT: Lauren Horwood
April 11, 2012	PHONE: (916) 554-2706
www.usdoj.gov/usao/cae	usacae.edcapress@usdoj.gov
Docket #: 2:11-CR-00123-KJM

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced that Ruben R. Rios Jr., 42, of Galt, was sentenced today by United States District Judge Kimberly J. Mueller to three years and 10 months in prison. Rios pleaded guilty on July 21, 2011 to wire fraud for embezzling more than $800,000 from his employer. He will begin serving his sentence on Monday, April 16, 2012.

According to his guilty plea, Rios worked as the financial controller of a Natomas-based company between December 2007 and August 2009. Rios used his corporate credit card for personal expenditures totaling $876,661. In addition to that, the company incurred finance charges on the personal expenses. Through this scheme, Rios obtained approximately $360,000 in cash advances at casinos, spent nearly $100,000 for home improvements and supplies, paid for his grandmother’s wake, paid approximately $60,000 in delinquent personal taxes, purchased four all-terrain vehicles, covered personal travel expenses of nearly $60,000, entered into an $8,000 personal training contract, customized multiple vehicles for $50,000, obtained nearly $80,000 in electronics and consumer goods, and wired funds to family members.

According to court documents, in order to perpetuate his scheme, Rios created false monthly statements for his corporate credit card that showed only business-related charges and excluded the personal expenses improperly incurred by him. For example, in April 2009, Rios incurred approximately $115,000 in new charges, but submitted only $600 for authorization. He paid the credit card balances by transferring funds from the company bank account into the credit card account. As part of his plea agreement, Rios has agreed to pay restitution to his former employer and to forfeit the remaining items he obtained from his scheme.

In sentencing Rios, Judge Mueller said his actions were egregious and had left permanent scars on his victims.

This case is the product of an investigation by the Sacramento Police Department and the Sacramento County Sheriff’s Department with assistance from IRS-Criminal Investigation. Assistant United States Attorney Jean M. Hobler prosecuted the case.

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