Shepherdsville, Kentucky, Man Guilty Of Embezzling Over $800,000 From His Employer

Manipulated accounting entries to hide his theft

LOUISVILLE, Ky. – U.S. Attorney John E. Kuhn, Jr. announced the guilty plea, this week, of a Shepherdsville, Kentucky, man who was charged with embezzling more than $800,000 from his employer during a seven year period.

Robert Kaiser, 58, pleaded guilty on October 8, 2015, in U.S. District Court, before District Judge Greg N. Stivers, to all twelve counts of a September 4, 2014 grand jury indictment. The indictment included eleven counts of wire fraud and one count of bank fraud. The indictment was unsealed on September 8, 2014.

The theft from his employer, C&M Services of Kentucky, Inc. (“C&M Services”) occurred between June 6, 2006 and March 26, 2013, and included an attempt to defraud Fifth Third Bank by submitting fraudulent financial statements to obtain a loan.

In court, Kaiser admitted to causing unauthorized transfers of monies to accounts he controlled. Further, Kaiser fraudulently transferred funds of C&M Services via credit card transfers and checks for unauthorized personal expenditures, and then concealed all of his theft from C&M Services by making false accounting entries and submitting fraudulent financial statements to obtain a revolving line of credit from Fifth Third Bank in order to conceal his theft.

In furtherance of the scheme, Kaiser caused interstate automated clearing house financial transfers from the C&M Services bank accounts at Fifth Third and Republic Banks to his personal Wells Fargo Credit Card accounts. According to the Indictment, Kaiser made eleven transactions between September 9, 2009, and January 22, 2013.

Also, between December 14, 2012, and March 26, 2013, Kaiser admitted to submitting materially false financial statements to Fifth Third Bank to obtain a revolving loan line of credit in the amount of $1,815,000.       

At sentencing, Kaiser could forfeit real property he obtained, directly or indirectly, as a result of the violations in the indictment and could be sentenced to no more than 20 years in prison for each of counts 1-11 (wire fraud) of the indictment and no more than 30 years for count twelve (bank fraud).  Further, the Judge could impose a fine of $3,750,000 and order Kaiser to serve three years of supervised release. Kaiser is scheduled for sentencing in Louisville on January 7, 2016 before Judge Stivers.

This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by the United States Secret Service, Louisville Field Office.