Waukesha Resident Guilty of Wire Fraud and False Income Tax Returns
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that John F. Losee (age 61) of Waukesha, Wisconsin, appeared in federal court on July 20, 2012 and, pursuant to a plea agreement, pleaded guilty to wire fraud and filing a false federal income tax return. As part of his plea agreement, Losee admitted that from April 2003 through May 2009, he had embezzled more than $800,000 from his former employer, Heim Manufacturing Corporation, which is located in Sussex, Wisconsin. During this period, Losee was employed as the general manager of Heim Manufacturing and responsible for the day-to-day operation of the business. Using his position, Losee submitted fraudulent purchase orders and invoices using the name of an actual vendor to cause Heim Manufacturing to issue more than 220 checks payable to the fictitious business Losee created. Losee then diverted these checks to bank accounts under his control and used the money to pay for personal expenses.
In addition, Losee failed to report as income the funds he had embezzled from Heim Manufacturing on the tax returns he filed for the years 2003 through 2009. By failing to report this income, Losee under reported and underpaid his federal income taxes for these years by approximately $165,000.
Based on this guilty plea, Losee faces up to 23 years in prison and fines of up to $500,000. Losee has also agreed to make full restitution to Modern Forge Companies, LLC., which is the parent company of Heim Manufacturing.
Losee’s sentencing is scheduled for October 26, 2012.
This matter was investigated by agents from the Internal Revenue Service-Criminal Investigation, with the assistance of investigators from the Wisconsin Division of Criminal Investigation and the Milwaukee Police Department. The case is assigned to Assistant United States Attorney Matthew L. Jacobs for prosecution.
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