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AUSA VICKIE E. LEDUC at 410-209-4885  

November 9, 2006

FOR IMMEDIATE RELEASE                  

http://www.usdoj.gov/usao/md                                       

FORMER ACCOUNTING MANAGER PLEADS GUILTY TO
USING COMPANY FUNDS FOR PERSONAL BENEFIT

Bought Wizard Season Tickets, Cruise and Obtained Cash

Greenbelt, Maryland - Michelle Gordon, age 35, of College Park, Maryland, pleaded guilty today to committing wire fraud arising from several schemes to use employer funds for her personal benefit, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

According to the plea agreement presented to the court, Gordon was employed by Applied Fire Protection Services, Inc. (AFPS) from July 1999 to September 2005, first as an accounting clerk, and then as the accounting manager. Gordon was responsible for accounts payable, and had control over company credit cards, company bank accounts and the company’s accounting system.

From November 2001 to October 2004, Gordon used a company credit card to make unauthorized purchases of $121,969 for her personal benefit, her family, or friends. These purchases included consumer goods, doctor’s visits, Washington Wizard season tickets, and a cruise for herself and her husband. To pay off these personal credit card charges, Gordon telephoned the credit card bank in Omaha, Nebraska to provide account information needed to debit the AFPS bank account at Sandy Spring Bank.

In a similar scheme, Gordon used another company credit card from July, 2004 to August 2005 to make unauthorized purchases of $9,060 for personal vehicle repairs and expenses, for the benefit of herself, her family or friends. Gordon paid off these personal credit card charges by using company bank accounts at BB&T Bank.

From November 2004 to September 2005, Gordon wrote unauthorized checks totaling $18,592 to herself or to “Cash” from two AFPS checking accounts, endorsed the checks, and deposited the proceeds into her personal bank account. To hide this fraudulent activity, Gordon falsified journal entries in the AFPS computerized accounting system and the AFPS manual accounting ledger in order to make it appear that the checks were payments to actual AFPS vendors.

Gordon faces a maximum sentence of 20 years in prison followed by 3 years of supervised release. Judge Chasanow scheduled sentencing for February 12, 2007 at 10:00 a.m.

United States Attorney Rod J. Rosenstein praised the investigative work performed by the U.S. Secret Service. Mr. Rosenstein thanked Assistant U.S. Attorney Steven M. Dunne, who is prosecuting the case.

This page last modified—November 9, 2006