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Justice News

Department of Justice
U.S. Attorney’s Office
District of Columbia

FOR IMMEDIATE RELEASE
Thursday, June 19, 2014

Former Chief Technology Officer Sentenced To Two Years In Prison For Embezzling More Than $150,000 From Non-ProfitUsed Money For Laptop, Jewelry, Cable Bills, And Other Personal Expenses

     WASHINGTON – Paul F. Kaufman, 55, of Stafford, Va., was sentenced today to two years in prison for embezzling more than $150,000 from his former employer, a non-profit based in Washington, D.C., U.S. Attorney Ronald C. Machen Jr. announced.

     Kaufman pled guilty in February 2014, in the U.S. District Court for the District of Columbia, to a charge of theft concerning a program receiving federal funds. He was sentenced by the Honorable Ketanji Brown Jackson. Upon completion of his prison term, Kaufman will be placed on three years of supervised release; during that time, he must perform 150 hours of community service, which is to include the teaching of computer science to high-risk students.

     Also, as part of his plea agreement, Kaufman has agreed to pay $157,516 in restitution and an identical amount in a forfeiture money judgment.

     According to the government’s evidence, Kaufman oversaw and managed the technology department for a non-profit identified in court documents as “Non-Profit A,” an organization that received federal money. Kaufman was authorized to solicit and approve work from outside vendors and he had the authority to direct the accounting department to pay them. He also had the authority to make business-related charges on certain corporate credit cards.

     Without the knowledge of “Non-Profit A,” Kaufman formed two companies. He then submitted invoices from these companies to the non-profit and authorized payments. All told, Kaufman generated $110,925 from this scheme between January 2004 and March 2012.

     In addition, the government’s evidence showed, Kaufman embezzled at least $46,590 from the non-profit by using its corporate credit cards and accounting department to pay a variety of personal expenses. Among other things, the unauthorized personal charges included expenses for Kaufman’s home cable and Internet service, food, coffee, gas, parking, music downloads, and a personal laptop computer. At one point, in April 2012, a non-profit employee discovered that Kaufman had used a corporate credit card to charge about $288 at a jewelry store. When asked about the charge, Kaufman produced an altered receipt and falsely claimed that the invoice was for repairs to an employee’s iPhone.

     Kaufman was terminated by the non-profit on May 4, 2012. Two days later, he sent an e-mail to the non-profit’s president and chief executive officer, apologizing for his actions and asking that he be allowed to reimburse the organization for the money that he embezzled.

     In announcing the sentence, U.S. Attorney Machen commended the work of the Metropolitan Police Department (MPD), which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Catherine K. Connelly, who assisted with forfeiture issues. Finally, he commended Assistant U.S. Attorney Ephraim (Fry) Wernick, who prosecuted the case.

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Updated February 19, 2015