Business Crime: senior officer pleads guilty to USD1 m embezzlement

From 2004-2010, according to federal prosecutors, Sackie served as the vice president and controller of Santa Barbara Bay Foods (SBBF), a nationwide wholesaler and distributor of gourmet foods products. Sackie’s duties at SBBF included supervision of SBBF’s accounts payable activities, signing cheques on behalf of SBBF, handling regulatory matters for SBBF and serving as SBBF’s de facto on-site plant manager and human resources director.

According to federal prosecutors, Sackie caused SBBF to issue a series of cheques that did not pay for any business or other legitimate needs of SBBF, but were instead directed to the payment of defendant’s own personal expenses and for defendant’s own benefit. In numerous instances, Sackie concealed her actions by causing SBBF’s accounting system to reflect that cheques had been made payable to entities doing legitimate business with SBBF when, in fact, the cheques had been made payable to Sackie or to other entities for Sackie’s benefit.

For example, between 25 April, 2006 and 5 January, 2010, Sackie caused the SBBF accounting system to reflect that a total of 47 cheques, totalling more than USD750,000, had been issued by SBBF and made payable to “Challenge Dairy,” when, in fact, those cheques had been made payable to Sackie herself or to the payment of her personal expenses.

Sackie also used an employee of SBBF to mail embezzled SBBF cheques, that were made payable to American Express, in satisfaction of Sackie’s personal credit card obligations.

Sackie’s scheme resulted in losses to SBBF of approximately USD1.1 million. As a result of her guilty pleas, Sackie faces a maximum statutory sentence of 40 years in federal prison.

Sackie is scheduled to be sentenced on 7 November, 2011 by United States District Court Judge George Wu.