Andrea Buchanan Press Release (Sentencing)

August 26, 2004
For Immediate Release

WOMAN SENTENCED TO 33 MONTHS FOR FALSE TAX RETURNS AND NEGOTIATING FRAUDULENT CHECKS FROM A $1.8 MILLION DOLLAR EMBEZZLEMENT SCHEME

St. Louis, Missouri: A former Southeast Missouri woman has been sentenced to prison for negotiating fraudulent checks and false tax returns in a $1.8 million embezzlement scheme and not reporting it as income on her income tax returns, United States Attorney James G. Martin announced today.

This case was investigated by Internal Revenue Service-Criminal Investigation and the Postal Inspection Service. Assistant United States Attorney Donald Wilkerson handled the case for the U.S. Attorney’s Office.

ANDREA BUCHANAN, 46, formerly of the 400 block of East Ewing, Lilbourn, Missouri, now residing in Kansas City, Missouri, was sentenced to 33 months and ordered to pay restitution of $1.8 million. On May 27, 2004, Buchanan pled guilty to one felony count of passing forged securities (Count I) and one felony count of making false statements on tax returns (Count II). She appeared today for sentencing before United States District Judge E. Richard Webber.

According to the facts filed with the court at the time of the plea, Buchanan was employed in the payroll office at Plastene Supply Company (PSC), located in Portageville, Missouri, a division of Seigel-Roberts, Inc., from 1978 to February 2002. As a payroll clerk, Buchanan was responsible for processing and issuing PSC’s weekly payroll. From 1998 through 2001, Buchanan randomly created more than 1,200 fraudulent vacation payroll checks payable to actual PSC employees. After Buchanan created the fraudulent checks, she forged the employee’s signature, signed her own name as the second endorsee and cashed the checks at a local bank. Buchanan was able to cash the fraudulent checks without arousing the bank’s suspicions under the pretense that she was cashing the checks as a favor to employees. During the course of her scheme, Buchanan embezzled approximately $1.8 million from PSC. Additionally, Buchanan failed to report the embezzled funds as income on her 1998 through 2001 income tax returns, which resulted in a tax loss of $208,050.

“The prosecution of individuals who seek to profit by fraudulently filing income tax returns with the IRS to evade tax is key to promoting fairness and equity in our tax system,” said Al Patton, Special Agent in Charge of IRS Criminal Investigation. “It provides a deterrent effect to potential violators of tax laws and sends a message to the honest taxpaying citizens that IRS is focused on combating tax fraud.”

“As we are seeing more and more with defendants in the federal system, Ms. Buchanan stole these funds to feed her gambling habit. Her sentencing properly reflects the seriousness of her criminal conduct,” said United States Attorney James G. Martin.

UNITED STATES ATTORNEY'S OFFICE EASTERN DISTRICT OF MISSOURI JAMES G. MARTIN United States Attorney	NEWS RELEASE
For further information: Call Public Affairs Officer Jan Diltz at (314) 539-7719
August 26, 2004 For Immediate Release WOMAN SENTENCED TO 33 MONTHS FOR FALSE TAX RETURNS AND NEGOTIATING FRAUDULENT CHECKS FROM A $1.8 MILLION DOLLAR EMBEZZLEMENT SCHEME St. Louis, Missouri: A former Southeast Missouri woman has been sentenced to prison for negotiating fraudulent checks and false tax returns in a $1.8 million embezzlement scheme and not reporting it as income on her income tax returns, United States Attorney James G. Martin announced today. This case was investigated by Internal Revenue Service-Criminal Investigation and the Postal Inspection Service. Assistant United States Attorney Donald Wilkerson handled the case for the U.S. Attorney’s Office. ANDREA BUCHANAN, 46, formerly of the 400 block of East Ewing, Lilbourn, Missouri, now residing in Kansas City, Missouri, was sentenced to 33 months and ordered to pay restitution of $1.8 million. On May 27, 2004, Buchanan pled guilty to one felony count of passing forged securities (Count I) and one felony count of making false statements on tax returns (Count II). She appeared today for sentencing before United States District Judge E. Richard Webber. According to the facts filed with the court at the time of the plea, Buchanan was employed in the payroll office at Plastene Supply Company (PSC), located in Portageville, Missouri, a division of Seigel-Roberts, Inc., from 1978 to February 2002. As a payroll clerk, Buchanan was responsible for processing and issuing PSC’s weekly payroll. From 1998 through 2001, Buchanan randomly created more than 1,200 fraudulent vacation payroll checks payable to actual PSC employees. After Buchanan created the fraudulent checks, she forged the employee’s signature, signed her own name as the second endorsee and cashed the checks at a local bank. Buchanan was able to cash the fraudulent checks without arousing the bank’s suspicions under the pretense that she was cashing the checks as a favor to employees. During the course of her scheme, Buchanan embezzled approximately $1.8 million from PSC. Additionally, Buchanan failed to report the embezzled funds as income on her 1998 through 2001 income tax returns, which resulted in a tax loss of $208,050. “The prosecution of individuals who seek to profit by fraudulently filing income tax returns with the IRS to evade tax is key to promoting fairness and equity in our tax system,” said Al Patton, Special Agent in Charge of IRS Criminal Investigation. “It provides a deterrent effect to potential violators of tax laws and sends a message to the honest taxpaying citizens that IRS is focused on combating tax fraud.” “As we are seeing more and more with defendants in the federal system, Ms. Buchanan stole these funds to feed her gambling habit. Her sentencing properly reflects the seriousness of her criminal conduct,” said United States Attorney James G. Martin.