Fraudster Ordered to Forfeit Her Retirement Funds


Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Kymberli Rand, age 41, of Brunswick, Maryland, today to 30 months in prison followed by three years of supervised release for wire fraud in connection with a scheme to embezzle funds from her employer. Judge Chasanow also entered an order that Rand forfeit the entire proceeds of her 401(k) account.


The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Jeffrey Irvine of the United States Secret Service – Washington Field Office and Chief J. Thomas Manger of the Montgomery County Police Department.


According to Rand’s plea agreement, from 2002, Rand was an administrative assistant for the Council of State Administrators of Vocational Rehabilitation (CSAVR), responsible for bookkeeping and finances. In April 2010, CSAVR officials discovered that from at least 2003 through February 2010, Rand had embezzled $777,249.95 which she used, among other things, to pay her personal American Express bill. She had also incurred $3,430.27 in personal expenses on her CSAVR-issued American Express card, using CSAVR funds to pay those expenses; and issued checks to herself from CSAVR-controlled bank accounts.


In order to conceal the theft, Rand entered the fraudulent American Express payments as travel expenses or omitted the entries entirely; failed to credit the 401(k) accounts of certain CSAVR employees, instead using those funds to replace a portion of the fund she had embezzled; forged an entire audit report for tax year 2007, and presented the forged report to the CSAVR chief executive officer; and created a fraudulent report showing the that one of the accounts controlled by CSAVR had a balance of $106,655.43, when in fact the balance of the account was $10,719.45.


The total amount of loss incurred as a result of the scheme is $876,616.20.


United States Attorney Rod J. Rosenstein thanked the U.S. Secret Service and the Montgomery County Police Department for their investigative work, and commended Assistant United States Attorney Jonathan C. Su, who prosecuted the case.


Published on 19/11/2010 00:12:28