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Press Release

Florida Man Charged With Embezzling $5.7 Million From Employer

For Immediate Release
U.S. Attorney's Office, District of Massachusetts

BOSTON – A Florida man was indicted today for allegedly embezzling at least approximately $5.7 million from his employer, a Florida-based portfolio company owned by a Massachusetts investment firm.

Paul Schnitzer, 51, of Clermont, Fla., was indicted on one count of wire fraud. He will appear in federal court in Boston at a later date. Schnitzer was previously arrested and charged by criminal complaint on May 21, 2024.

According to the charging documents, Schnitzer worked as the finance director for the portfolio company. It is alleged that between January 2022 and May 2024, Schnitzer made over 100 transfers, most disguised as “equity distributions,” from the company’s operating account into his personal account. To hide these transfers, Schnitzer allegedly provided falsified financial reports with inflated cash balances for the company to the investment firm. It is also alleged that Schnitzer secretly used a line of credit to replenish the company’s operating account after he had stolen from it.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000, or twice the loss to the victim. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.

Updated June 20, 2024

Topic
Financial Fraud