Woman Pleads Guilty To Embezzling 1.8 Million
From Employer And Tax Evasion
Memphis, TN - Gladys Sue Allen, 55, of Lamar, Mississippi, pled guilty to one count of wire
fraud and one count of income tax evasion before U.S. District Judge Samuel H. Mays, Jr.,
announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
Allen was indicted on March 12, 2012, and charged with 15 counts of wire fraud and five counts
of tax evasion.
According to the indictment, Allen, executed a scheme to defraud her employer, Troxel
Company (Troxel) beginning about January 5, 2005, until around July 21, 2010. Allen
employed as a senior accountant, provided payroll data for Troxel to their outside processing
firm, Automated Data Processing (ADP). The indictment charges that during this period of
time, Allen knowingly provided ADP with false payroll information, resulting in her receiving
money to which she was not entitled to receive from Troxel.
As part of Allen’s plea agreement, she agreed that the total loss in this matter is $2,200,840.92.
According to the indictment, for calendar years 2005 through 2009, Allen failed to report
approximately $919,136.44 in income on her tax returns filed with the Internal Revenue Service
(IRS). The tax due and owning the government on these unreported funds amounts to
Sentencing has been set for November 16, 2012 at 9:30 a.m. before Judge Mays. Allen
faces a maximum penalty of 30 years in prison and a fine of $1 million on the wire fraud charge
and 5 years in prison and a fine of $250,000 on the tax evasion charge.
This investigation was conducted by the U.S. Secret Service and IRS Criminal Investigation.
Assistant U.S. Attorney Justin L. Bailey represented the government.