Former Memphis Law Firm Office Manager Indicted for Embezzling Over $1.2 Million Dollars

Memphis, TN – A federal grand jury in the Western District of Tennessee recently returned an indictment charging a Memphis resident, Catherine Corrine Daly, 54, with embezzlement from a local law firm.  Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, announced the indictment today.

According to the indictment in the case, Daly was employed by a local law firm as its office manager.  As office manager, she had access to the firm’s bank accounts, including the firm’s operating account, which was used to pay the firm’s operating expenses.  The operating account was both opened and located at a Memphis branch of what was then known as SunTrust Bank.

Daly had two American Express (AmEx) charge accounts in her name with a total of five AmEx charge cards issued through the two accounts to Daly and two of her relatives.  The cards were used to purchase various goods and services such as clothing, shoes, designer handbags, and jewelry; fixtures and furnishings for Daly’s residence; food purchased at restaurants; personal services at nail and beauty salons; and travel expenses.

As these charges were made, Daly is alleged to have used the money in the firm’s operating account to pay the amounts due on her personal AmEx charge accounts.  She conducted the embezzlement scheme from June 2019 until October 2021, allegedly making multiple payments on her personal AmEx bills directly from the law firm’s operating account.  Using this method, Daly embezzled and converted $1,289,085.00 of the law firm’s funds to her own use.

Daly is charged with six counts of violating Title 18, United States Code, Section 2314.  This statute makes it a crime to transfer money in interstate commerce that has been “stolen, converted or taken by fraud.”  Each count of the indictment is punishable by a term of up to 10 years of imprisonment, a fine of no more than $250,000.00, or both, as well as a term of court-supervised release of no more than three years.

The United States Secret Service is investigating the case.  Assistant United States Attorney Joe Murphy for the Western District of Tennessee is prosecuting the case.

An indictment is merely an allegation.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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For more information, please contact the Media Relations Team at USATNW.Media@usdoj.gov. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.