$10.4 million embezzlement, $10,400,000, stolen over a little more than three short years, to support a “significant gambling problem?”
First, how much investments could a firm manage or maintain to not miss $10.4 million dollars? I am left wondering how this amount was not missed for over three years, and how controls that I would expect implemented by any investment firm did not prevent or detect this level of theft for such a long period. Cases like this one makes me wonder just how many of these thefts are occurring today but have yet to be discovered, much like when I wrote something similar a year ago when this particular case was on-going and yet to be discovered. Is also makes me wonder how many individuals who gamble regularly support their hobby or addiction with stolen funds.
Former company official admits embezzling $10.4M from northern NJ investment firm
NEWARK, N.J. — Federal prosecutors say a New Jersey man has admitted embezzling more than $10.4 million from the investment management firm where he served as chief financial officer.
Newmark’s lawyer, Michael B. Himmel, said his client has a “significant” gambling problem.
Thirty-nine-year-old David Newmark of Montville surrendered to authorities Wednesday and pleaded guilty to wire fraud and tax evasion charges. He faces up to 25 years in prison when he’s sentenced April 24 and also will have to make full restitution. Newmark stole the money from Short Hills-based Columbus Hill Capital Management. Prosecutors say he created a phony account to collect fraudulent deposits between February 2008 and March 2011 and diverted the funds to bank accounts he controlled. Newmark’s lawyer, Michael B. Himmel, said his client has a “significant” gambling problem.