Former Accountant for Virginia Home Medical Pleads Guilty Related to Embezzlement of Company Funds
NEWPORT NEWS, Va. – Terry A. Miller, 47, of Hampton, Va., pleaded guilty yesterday to making and subscribing false tax returns that omitted hundreds of thousands of dollars embezzled from his former employer, Virginia Home Medical.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by Senior United States District Judge Henry Morgan.
A criminal information was filed on May 4, 2010, charging Miller with one count of making and subscribing a false tax return for the tax year 2008. Sentencing has been set for October 4, 2010. Miller faces a maximum penalty of three years imprisonment and a $100,000 fine.
In a statement of facts filed with his plea agreement, the defendant, who from 2002-2008 was employed as an accountant and comptroller for Virginia Home Medical, located in Newport News, Virginia, admitted he embezzled funds from his employer over the course of at least six years. As accountant and then comptroller for Virginia Home Medical, the defendant’s
responsibilities included making entries into the company’s accounting records to account for the expenditures. The defendant also prepared payment checks for company bills from the company’s business bank account at Branch Banking and Trust Bank (BB&T). The defendant was also responsible for performing some functions related to the company’s payroll.
The embezzlement committed by the defendant took several forms. Without authorization, the defendant increased his salary. The defendant prepared company checks made payable to himself and deposited these checks into his own bank account. The defendant also prepared company checks made payable to the company’s petty cash fund, cashed these checks and used the funds for personal expenditures. Lastly, the defendant prepared company checks made payable to third parties, such as credit card companies, and used these checks to pay personal debt and expenses. Many of the checks at issue were endorsed by the defendant’s unauthorized use of Virginia Home Medical’s president’s signature, via signature stamp and electronically scanned copies of the signature. The extent of the embezzlement was over $480,000.00.
The defendant prepared and filed joint U.S. Individual Income Tax Returns Form 1040 for tax years 2002 through 2008, that reflected income earned by the defendant and his wife. The defendant did not report the embezzled funds on his tax returns. On his 2008 tax return, the defendant identified total income of $152,947.00, composed of Form W-2 wages and taxable interest. The defendant did not report embezzled funds in the amount of approximately $125,301.16 from Virginia Home Medical as income on his 2008 tax return.
The defendant admitted that he intentionally did not report the embezzled funds on his income tax returns so as not to draw attention to the embezzlement.
This case was investigated by the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorney Brian J. Samuels 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.