Corporate controller admits to embezzling funds

DETROIT - A small business's former financial controller, who engaged in a pattern of embezzling funds from his employer, pleaded guilty yesterday, announced United States Attorney Jerome F. Gorgon, Jr.

Gorgon was joined in the announcement by Jennifer Runyan, Special Agent in Charge of Federal Bureau of Investigation and Robert Kuszynski, Acting Special Agent in Charge of the Internal Revenue Service-Criminal Investigations.

Jacob Wise, age 29, from Riverview, Michigan, pleaded guilty to one count of wire fraud for orchestrating a scheme that caused over $1.1 million in losses to the business where he worked. He also pleaded guilty to one count of laundering the proceeds of his crimes.

At the hearing, Wise admitted to devising and executing a scheme to order and to divert the company's funds to bank accounts he controlled. The accounts appeared to be legitimate vendors for the company. In reality, Wise himself controlled the accounts and used the diverted funds to make purchases, including a Ford F-150 pickup truck, which agents seized as part of the investigation.

Sentencing before United States District Judge Judith Levy will be set after a presentence report is prepared. Wise faces a possible maximum sentence of 20 years' imprisonment, a fine of not more than $250,000, and up to three years of supervised release following any term of imprisonment.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigations. The case is being prosecuted by Assistant United States Attorneys Kelly Fasbinder and Philip A. Ross