Independence Man Indicted for Stealing $247,000 from Employer

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the financial comptroller of a North Kansas City, Mo., business was indicted by a federal grand jury today for a wire fraud scheme in which he embezzled more than $247,000 from his employer over five years.

John S. Kruse, 48, of Independence, Mo., was charged in a five-count indictment returned by a federal grand jury in Kansas City, Mo.

Kruse was employed as the financial comptroller of BCC Merchant Solutions, a North Kansas City firm that provides electronic payment systems, e-commerce systems, business capital and marketing services to other companies.

Today’s indictment alleges that Kruse engaged in a scheme to steal at least $247,508 from BCC Merchant Solutions from April 2010 until his resignation in July 2014. Kruse allegedly made at least 213 unauthorized wire transfers from his employer’s bank account into his personal bank account. Through his scheme, the indictment says, Kruse embezzled $5,776 in 2010; $36,989 in 2011; $71,868 in 2012; $76,225 in 2013; and $56,648 in 2014.

According to the indictment, Kruse used the money to pay for extravagant trips for his family to Las Vegas, Nev., and to Disneyworld.  He allegedly spent $50,934 at convenience stores and for gasoline; $41,197 on entertainment; $138,186 for groceries and general merchandise; $65,416 through PayPal; $49,105 for travel and leisure; $49,773 for miscellaneous; and $50,934 for cash.

As the financial comptroller, Kruse was in charge of paying out sales commissions and bank reconciliations, along with keeping records within QuickBooks. In the course of his job, Kruse was authorized to access BCC Merchant Solutions’ bank account. To hide his embezzlement, the indictment says, Kruse manipulated the QuickBooks records to falsely reflect that the money he transferred into his account was being used elsewhere. Kruse allegedly falsified who the deposits were made to, indicating they were payments made on sales commissions and bank reconciliations.

Kruse is charged with five counts of wire fraud. The indictment also contains a forfeiture allegation, which would require Kruse to forfeit to the government $247,508, representing the proceeds of the alleged wire fraud scheme.

Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the U.S. Secret Service and the North Kansas City, Mo., Police Department.