CPA And Former CFO Of Service King LLC Is Sentenced To 36 Months In Federal Prison For Embezzling From Employer
DALLAS — A local Certified Public Accountant (CPA) was sentenced yesterday afternoon on a mail fraud conviction stemming from his embezzlement of funds from his employer, announced Acting U.S. Attorney John Parker of the Northern District of Texas.
Daniel L. Mangini, 61, of Southlake, Texas, was sentenced to 36 months in federal prison and ordered to pay $2,459,218.44 in restitution, which includes the victim’s attorney’s fees, investigative costs, and prejudgment interest, by U.S. District Judge Barbara M. G. Lynn. He must surrender to the Bureau of Prisons by May 5, 2015.
Mangini has also agreed to forfeit his Destin, Florida, residence to the government. While Mangini’s CPA license is not currently active, he agreed he will not oppose any disciplinary action by the Texas State Board of Accountancy related to or concerning his offense, nor practice in the financial sector or in the field of accounting.
According to documents filed in the case and evidence presented at sentencing, Mangini was the Chief Financial Officer at Service King LLC as well as the personal CPA to Service King’s owner, Edward Lennox. Starting in or about January 2006 and continuing until his resignation from Service King in February 2012, Mangini embezzled funds from Lennox. In particular, Mangini accessed Lennox’s computerized accounting system and printed or wrote unauthorized checks which were payable to Mangini’s personal creditors or himself from Lennox’s bank accounts. Mangini sent unauthorized checks for payment to his creditors through the U.S. Postal Service and initiated interstate wire transfers to move embezzled funds between financial entities for his own benefit and to conceal the true source of the proceeds. As a particular example, Mangini admitted in January 2012, he wrote a $40,000 check payable to American Express from one of Lennox’s accounts. Mangini admits the check was not authorized and that the money was embezzled from Lennox. To conceal the scheme, Mangini backdated the check by one year in Lennox’s records. The evidence at sentencing established that over the course of the scheme, Mangini embezzled more than $2 million from the victim.
The evidence at sentencing also established that Mangini made false representations in the course of obtaining a mortgage to purchase in part a luxury beachfront property in Destin, Florida. Through the use of civil forfeiture in the related case of United States v. 4662 Destiny Way, Destin, Florida, Case No. 3:14-CV-2134-P (N.D. Texas), and prejudgment remedies of the Federal Debt Collection Procedures Act in the criminal case to preserve assets before Mangini’s sentencing, the government secured $1.765 million for the victim. Prior to sentencing, the government collected more than $1.65 million from the sale of luxury real estate and goods, which will be immediately disbursed to the victim as restitution. Further, the government has restricted an additional $100,000 in financial and retirement accounts held by garnishees pending final orders.
The FBI investigated. Assistant U.S. Attorneys Melissa Childs and J. Nicholas Bunch prosecuted.