Woman Pleads Guilty In Fraud Scheme

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that a Jennifer L. Cadwallader, 39, pleaded guilty to wire fraud and filing false tax returns before Chief U.S. District Judge Frank P. Geraci. The chargeS carry a maximum penalty of 20 years in prison and a $250,000 fine. 

According to Assistant U.S. Attorney Trini E. Ross, who is handling the case, the defendant was employed as the Office Manager for American Paving and Excavating, LLC (“American Paving”) from 2009 to 2015. Cadwallader responsibilities included accounts payable, maintaining books and records, the accounting system, paying bills, payroll, and deposits.

Between 2012 and 2014, the defendant accessed American Paving’s bank account and electronically transferred $338,329.12 from the corporate bank account to her personal credit card accounts. These electronic transfers were not authorized by American Paving and were done without American Paving’s knowledge or consent. In an attempt to conceal the theft, Cadwallader recorded the payments to her personal credit card accounts as credit card and fuel expenses on American Paving’s books and records.

In that same time period, the defendant failed to report the income from the electronic transfers totaling $338,329.12 to the Internal Revenue Service. Taxes due on the income totaled $108,026.00.

The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen.

Sentencing is scheduled for April 13, 2016 at 10:30 a.m. before Judge Geraci.