WOODSTOCK RESIDENTS ARRESTED ON FEDERAL CHARGES STEMMING FROM $2.5 MILLION EMBEZZLEMENT SCHEME
David B. Fein, United States Attorney for the District of Connecticut, announced that LYNN A. SCHEUFLER, 34, and CRAIG L. GALLIGAN, 40, both of Woodstock, Conn., were arrested today on federal charges stemming from a $2.5 million embezzlement scheme.
As alleged in the criminal complaints, SCHEUFLER was the Controller and Chief Financial Officer of a company that owns and operates dining and nightlife venues in the northeastern United States. In that role, SCHEUFLER handled all aspects of the Company’s finances, had signatory authority on the Company’s bank accounts and possessed ATM cards for the Company’s cash deposit accounts. She also was responsible for filling ATM machines located in the Company’s venues out of the cash that managers collected from daily business operations and deposited into nightly deposit bags for further transfer to the Company’s cash accounts.
From approximately January 2010 to March 2012, it is alleged that SCHEUFLER embezzled more than $2.5 million by taking cash out of the Company’s nightly deposit bags. She also made unauthorized withdrawals from the Company’s cash accounts using the Company’s ATM card. SCHEUFLER concealed the theft by misstating or altering accounting entries on the Company’s books and records.
SCHEUFLER and GALLIGAN are alleged to have deposited more than $700,000 in cash deposits into their personal bank accounts. The deposits were structured so that no individual deposit exceeded the $10,000 threshold that would have triggered bank reporting requirements.
It is further alleged that SCHEUFLER and GALLIGAN used the embezzled money to gamble at casinos in Connecticut. Casino records indicate that SCHEUFLER and GALLIGAN lost a combined total of more than $1.4 million at the casinos during the course of the embezzlement scheme.
SCHEUFLER and GALLIGAN, who are married, were arrested today at their Woodstock residence. They appeared before United States Magistrate Judge Thomas P. Smith in Hartford and were released on bond.
The criminal complaint against SCHEUFLER charges her with wire fraud and with illegally structuring financial transactions, and the criminal complaint against GALLIGAN charges him with illegally structuring financial transactions. Wire fraud carries a maximum term of imprisonment of 20 years, and structuring carries a maximum term of imprisonment of five years.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. The defendants are entitled to have this matter presented to a grand jury, and, in the event an indictment is returned, they are entitled to a trial at which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Special Assistant U.S. Attorney Kerry L. Quinn.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE