ITMG Insider Threat Cases October 9, 2022

In the China Ties Case, a NASA professor and Researcher Pleads Guilty

A NASA researcher and professor at Texas A&M University has pleaded guilty to concealing his ties to a Chinese government-founded university while receiving federal funding.

At a hearing in federal court in Houston, Zhengdong Cheng pleaded guilty to two counts of her violating NASA rules and falsifying official documents.

Mr. Chen’s conviction was part of a program called the China Initiative, which was first launched under the Trump administration. But the Justice Department closed the program in February after complaints that it stifled academic cooperation and contributed to anti-Asian bias. The department also suffered a high-profile setback in individual prosecutions last year after dropping several criminal cases against academic researchers. The Justice Department said it plans to raise the bar for such prosecutions.

Sumter Man Sentenced to 3 years in Federal Prison for Stealing $800,000 from Nonprofit

Rodney Ellis was sentenced to 33 months in federal prison after pleading guilty in July to stealing from his employer, Sumter Behavioral Health Services.

Beginning in 2013, Ellis used his position as financial officer to funnel hundreds of thousands of dollars into his personal bank accounts. In May, he was charged with three counts of wire fraud in a case prosecuted by Assistant U.S. Attorney Amy Bowers. Wire fraud carries a potential penalty of up to 20 years in prison.

Woman Accused of Embezzling Nearly $200K From Darien Company: Police

Police said that while the victim was reviewing the company’s financial records, she found some discrepancies and noticed payments were made to credit cards that did not belong to the company. It was discovered that over $50,000 had been embezzled from the business account over the years, police said.

“The victim came to police headquarters to report a larceny involving a large sum of money embezzled from her business account by one of her employees,” Darien police said in a news release. “The victim reported that the employee she suspects was Opolski.”

Former Alternative School Finance Director Accused of Embezzling $3M

School staff reported financial irregularities to state police in August. An investigation showed $3 million of the school’s funds were diverted into a private account, according to state police.

Nathan Kaufman, 35, was director of finance and operations for Urban Collaborative Accelerated Program before leaving the school in June. He was charged with embezzlement and access to a computer for fraudulent purposes and was arraigned in Providence District Court. He was released on $15,000 bail.

Former Welfare Director John Davis Set to Plead Guilty Today

Former welfare agency director John Davis, of Brookhaven, is set to plead guilty on Thursday to two federal charges and 18 state counts of fraud or conspiracy related to his role in the Mississippi welfare scandal, according to separate federal and state court filings.

The new federal charges pertain to welfare funds Davis allegedly helped funnel to the companies of retired professional wrestler Ted “Teddy” DiBiase Jr., son of famed WWE wrestler Ted “The Million Dollar Man” DiBiase. Davis and Teddy DiBiase Jr. had developed a close relationship during Davis’ term as welfare director from 2016 to 2019, as Mississippi Today has reported in its investigative series “The Backchannel.”

Rocklin Man Arrested in $2.2 Million Embezzlement Scheme

The Roseville Police Department said it arrested a man suspected of embezzling $2.2 million from a profit-sharing fund meant for retirees of business based in Sutter County.

Police said that the trustees transferred $2.2 million of their fund over a seven-year period to Balance Point Analytics LLC after a representative from the firm, Robert Barnack, 64, convinced them they would get a higher rate of return with the firm.

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