News and Press Releases

Former CFO for Sparks Door Lock Company Sentenced to Seven Years in Prison for $2 Million Embezzlement

FOR IMMEDIATE RELEASE
March 6, 2012

Reno, Nev. – A Reno man who worked as the chief financial officer for Securitron Magnalock Corporation, an electronic door lock manufacturer in Sparks, Nevada, was sentenced today to just over seven years in prison for embezzling approximately $2.5 million from the company over a seven-year period, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Juan Ramon Cabezas, 56, of Reno, was sentenced by U.S. District Judge Howard D. McKibben to 87 months in prison, three years of supervised release, and a $50,000 fine. Prior to sentencing, Cabezas also paid a restitution settlement to his former employer for $3.5 million. Cabezas pleaded guilty in October 2011 to mail fraud, tax evasion, aggravated identity theft, money laundering, and bank fraud. He must report to federal prison by June 4, 2012.

"As indicated in this case, if you commit a federal financial crime such as embezzlement or bank fraud, you could go to prison for a very long time," said U.S. Attorney Bogden. "The investigation and prosecution of these crimes are a priority in the District of Nevada."

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.

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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