Maryland Man Pleads Guilty To Stealing $530,000 from Non-Profit Serving At-Risk Children
ALEXANDRIA, Va. – Caesar Adigwe, 54, of Maryland, pleaded guilty today to stealing more than $530,000 from Residential Youth Services (RYS), a Virginia-based non-profit serving abused, neglected and at-risk children in the Washington, D.C., area.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and C. André Martin, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the plea was accepted by United States District Judge James C. Cacheris.
Adigwe today pled to a two-count criminal information charging him with mail fraud and the willful failure to collect and pay over taxes. He faces a maximum penalty of 20 years in prison for the mail fraud conviction and five years for the tax conviction when he is sentenced on July 23, 2010
In a statement of facts filed with his plea agreement, Adigwe admitted to serving as the executive director of RYS from October 2004 to April 2008. He opened an account in the name of RYS, though RYS had not authorized and was not aware of the account, and deposited nearly $350,000 of the charitable contributions given to RYS into it. He then used these embezzled charitable contributions for his own benefit, including to make mortgage payments, pay college tuition for his children, and fund his own personal travel. In addition, Adigwe used an RYS credit card to pay other personal expenses and opened lines of credit in the name of RYS which he used to purchase laptop computers. The total amount by which Adigwe defrauded RYS is approximately $530,231.
Adigwe also admitted today that, while serving as executive director of RYS, he failed to pay over the required employment taxes withheld from RYS employees for the quarters ending September 2006 through September 2007. The tax loss resulting from this offense is approximately $85,000.
This case was investigated by the IRS Criminal Investigation Division. Assistant United States Attorney Ed Power is prosecuting the case on behalf of the United States.A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on http://pacer.uspci.uscourts.gov.