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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Indiana

Wednesday, February 12, 2014

Hogsett Announceswarrick County Woman Sentenced For Bank Fraud

Bookkeeper sentenced to 21 months after stealing nearly $150,000 from local business

INDIANAPOLIS – The United States Attorney, Joseph H. Hogsett, announced today that Cindy L. McDaniel, age 42, of Boonville, was sentenced to 21 months in federal prison by U.S. District Judge Richard L. Young following her guilty plea to bank fraud and filing false tax returns. The suspected embezzlement was reported to law enforcement and investigated by the United States Secret Service and the Internal Revenue Service’s Criminal Investigation Division.

“When those in positions of trust cheat on their taxes, it affects all Hoosiers,” said Hogsett. “We take these crimes seriously and have made them a priority in this office.”

“All Americans have a duty to pay their fair share,” IRS Criminal Investigation Special Agent in Charge, James Lee stated. “The prosecution of Ms. McDaniel and others who conceal income and evade taxes is a vital element in maintaining the confidence in our tax system.”

McDaniel pleaded guilty to the offense immediately before sentencing. At the time of her guilty plea, McDaniel admitted that between June 1, 2009, and July 4, 2011, she was employed as a bookkeeper and office manager for Concrete Pavers, Inc. She used unique user names and passwords to access the company’s bank account, she then deposited the money into her personal checking account and that of her husband. As a result of her actions, approximately $149,000 earmarked for the purpose of paying employee’s withholding tax was never properly deposited or claimed on her individual tax returns.

According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young ordered McDaniel to serve a period of four years of supervised release after release from imprisonment. Judge Young also ordered McDaniel to pay restitution in the amount of $149,000 to Concrete Pavers and $29,033 to the Internal Revenue Service. ###

Updated January 26, 2015