Financial Officer Charged with Embezzling over $2 Million from Sparks Door Security Company
Reno, Nev. – A Reno man who worked as the chief financial officer for a company that manufactures electronic door locks in Sparks, Nevada, has been charged with fraud, tax, identity theft and money laundering offenses for embezzling over $2 million from his employer, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Juan Ramon Cabezas, 55, of Reno, was indicted on Wednesday, May 11, 2011, and charged with 15 counts of mail fraud, 11 counts of interstate transportation of stolen property, five counts of attempt to evade or defeat tax, four counts of aggravated identity theft, two counts of money laundering, and 22 counts of bank fraud. Cabezas surrendered this morning to federal authorities in Reno, and is scheduled to make an initial appearance before a federal magistrate judge at 3:00 p.m. today.
According to the indictment, Cabezas was the chief financial officer for Securitron Magnalock Corporation located in Sparks. According to Securitron's website, the company is a subsidiary of Assa Abloy, a Swedish door security company with over 30,000 employees worldwide. Cabezas managed the financial affairs of Securitron, and had the authority to issue corporate checks. The company required that all checks drawn on the account in excess of $10,000 bear two signatures of officers or employees of the corporation. Cabezas was one of the authorized signatories.
Between May 5, 2003, and November 13, 2009, Cabezas allegedly drew 15 checks on the corporate account, and made them payable to a Fidelity Investment account which he controlled. The checks ranged from approximately $54,000 to $200,000, and totaled $2,060,024. Cabezas affixed his signature, as well as a signature stamp of Securitron's CEO, to some of the unauthorized checks. This was done without the authorization or knowledge of the CEO. On some of the checks, Cabezas forged another employee's signature as the second signature. Cabezas allegedly arranged for the checks to be sent by FedEx to Kentucky, where his Fidelity Investment account was located.
If convicted, Cabezas faces up to 20 years in prison for each mail fraud count, up to 10 years in prison for each money laundering and interstate transportation of stolen property count, up to five years in prison for each tax count, up to 30 years in prison for each bank fraud count, and a two-year consecutive sentence for the identity theft count. Cabezas also faces fines of between $250,000 to 1,000,000 on each count, and would have to forfeit real property located at 6304 Green Ranch Circle in Reno; Assa Abloy, Inc. stock; and investments held in a Fidelity account.
The case is being investigated by the FBI and IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorney Ronald C. Rachow.
An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.