News and Press Releases

Financial Officer Pleads Guilty to Embezzling over $2 Million from Door Lock Company

FOR IMMEDIATE RELEASE
October 18, 2011

Reno, Nev. – A Reno man who worked as the chief financial officer for Securitron Magnalock Corporation, an electronic door lock manufacturer in Sparks, Nevada, pleaded guilty today to five federal felony offenses for embezzling approximately $2.5 million from the company, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Juan Ramon Cabezas, 55, of Reno, pleaded guilty before U.S. District Judge Howard D. McKibben to one count of mail fraud, one count of tax evasion, one count of aggravated identity theft, one count of money laundering, and one count of bank fraud, and is scheduled to be sentenced on February 14, 2012, at 10:00 a.m.

According to the court records, as chief financial officer, Cabezas had complete control over the financial activities and accounting functions of Securitron Magnalock Corporation. According to Securitron's website, the company is a subsidiary of Assa Abloy, a Swedish door security company with over 30,000 employees worldwide. From about May 2003 to early 2010, Cabezas embezzled approximately $2.5 million from his employer. Cabezas accomplished this by making false entries in the company accounting system and generating checks payable to a personal retirement account, and by forging checks. Some of the funds Cabezas stole were used to purchase a residence in Reno and Assa Abloy, Inc. stock. Between 2004 and 2009, Cabezas also failed to report any of the stolen income on his federal income tax returns. The resulting tax loss to the federal government for those years was approximately $882,532.

Cabezas faces up to 67 years in prison and fines of $250,000 to $1,000,000 on each count. He also agreed to forfeit the residence, stock, and retirement account investments.

This law enforcement action is sponsored by President Barack Obama's Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

The case was investigated by the FBI and IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorney Ronald C. Rachow.

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