Former JabberBlabber Employee Pleads Guilty to Defrauding Publication of More Than $70,000

Memphis, TN – A former employee of JabberBlabber, Inc. a Memphis-based children’s magazine, has pled guilty to defrauding the publication of more than $70,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the plea today.

According to information presented in court, Katrina Sears, 32, of Horn Lake, MS, worked as an accounts receivable clerk for JabberBlabber between February 2008 and February 2014. Over the six-year period, her duties included managing both the publication’s receivable and payable accounts as well as performing routine clerical duties.

Sears had authorization to receive and open letters delivered to JabberBlabber; checks were enclosed in many of the letters. Sears was required to record the payments into the magazine’s QuickBooks accounting software program and subsequently provide them to designated staff members for deposit. Sears was not authorized to conduct any banking transactions on JabberBlabber’s behalf including deposits and withdrawals, according to information presented in court.

Between December 2010 and February 2014, Sears embezzled more than 150 letters containing checks made payable to JabberBlabber. According to court information, Sears reportedly forged the payee line on the checks and deposited the money into her personal Bank of America account. Sears would then delete or edit the corresponding invoice from the QuickBooks accounting software.

According to court information, a review of JabberBlabber’s accounting records by the United States Postal Inspection Service showed that approximately 160 invoices had been deleted or edited from the software. Furthermore, a review of Sears’ bank records

revealed she had deposited more than $70,000 worth of checks initially made payable to JabberBlabber.

On Thursday, October 8th, 2015, Sears pled guilty to one count of obstruction of correspondence.

Sears faces up to five years imprisonment and a fine of up to $250,000.

She’s scheduled to be sentenced by Judge John T. Fowlkes Jr. on January 8th, 2016.

The case was investigated by the United States Postal Inspection Service.

Assistant U.S. Attorney Leetra Harris is prosecuting the case on the government’s behalf.