Controller Of Family-Owned Businesses Pleads Guilty To Embezzling $3.4 Million

 

Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN HICKEY, the former controller and Director of Quality Assurance for a family-owned business in Armonk, New York, pled guilty to one count of wire fraud in connection with his embezzlement of more than $3.4 million from the business.  

U.S. Attorney Damian Williams said: “John Hickey embezzled over $3.4 million from a family-owned business, exploiting his position of trust for personal gain. Today’s guilty plea holds Hickey accountable for his illegal conduct and demonstrates our unwavering commitment to pursuing justice for victims of fraud.” 

According to the allegations contained in the Information:

HICKEY was a member of the family that owned the group of victim corporations and held minority ownership interest in some of the corporations.  The victim corporations manufactured flame retardant fabrics.  HICKEY began to work at the victim corporations while he was in college and became the Director of Quality Assurance in or about 2012. HICKEY also served as the controller of some of the victim corporations.

From February 2018 to November 2023, HICKEY embezzled $3,461,292.69 from the victim corporations.  He created false invoices that appeared to be from entities with which the vctim corporations did business.  He then forged signatures that supposedly approved payment of those invoices and caused the victims' accounting system to print checks payable to him in the amount of the invoices.  Once a check was printed, HICKEY changed the payee on the check to match the name on the corresponding false invoice.  He used a rubber signature stamp to sign the checks. HICKEY used the proceeds of the above scheme to gamble on sporting events, to attend concerts and sporting events, to improve and repair his home and to go on vacations.

HICKEY, 34, of Feasterville-Trevose, PA, pleaded guilty to one count of wire fraud, which carries a maximum sentence of twenty years in prison.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence will be determined by the court.

Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney's Office for the Southern District of New York.