Administrative Assistant Pleads Guilty to Defrauding Her Employer of over $660,000 in Years-long Embezzlement Scheme
Greenbelt, Maryland - Kymberli Rand, age 41, of Brunswick, Maryland, pleaded guilty today to wire fraud in connection with a scheme to embezzle funds from her employer.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Jeffrey Irvine of the United States Secret Service – Washington Field Office and Chief J. Thomas Manger of the Montgomery County Police Department.
According to the plea agreement, from 2002, Rand was employed as the administrative assistant for the Council of State Administrators of Vocational Rehabilitation (CSAVR) and her duties included bookeeping and responsibility over finances. In April 2010, CSAVR officials discovered that from at least 2003 through February 2010, Rand had embezzled hundreds of thousands of dollars which she used, among other things, to pay her personal American Express bill. In addition, it was discovered that she had incurred thousands of dollars in personal expenses on the CSAVR-issued American Express card and used CSAVR funds to pay those expenses; and issued checks to herself from CSAVR-controlled bank accounts.
In order to conceal the theft, Rand entered the fraudulent American Express payments as travel expenses or omitted the entries entirely; failed to credit the 401(k) accounts of certain CSAVR employees, instead using those funds to replace a portion of the fund she had embezzled; forged an entire audit report for tax year 2007, and presented the forged report to the CSAVR Chief Executive Officer; and created a fraudulent report showing the that one of the accounts controlled by CSAVR had a balance of $106,655.43, when in fact the balance of the account was $10,719.45.
Rand faces a maximum sentence of 20 years in prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for November 1, 2010 at 9:00 a.m. As part of her plea agreement, Rand is required to forfeit a residence on Brad Alan Drive in Brunswick, Maryland and the proceeds of her 401(k) account.
United States Attorney Rod J. Rosenstein commended Assistant United States Attorney Jonathan C. Su, who is prosecuting the case.