Former CFO Indicted for Embezzling $5.7 Million from Employer

By - January 3, 2014
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moving and storage company Collins BrothersA grand jury in White Plains NY this week returned a two count indictment against Gregg Pierleoni for mail fraud and wire fraud.

The indictment states that Pierleoni embezzled more than $5.7 million over six years from the Westchester NY moving and storage company Collins Brothers, where he worked as chief financial officer from 1987 until April 2013.

Manhattan US Attorney Preet Bharara stated that Pierleoni abused the trust that was placed in him by his company to steal money so he could live a lavish life.

The assistant FBI director, George Venizelos noted that Pierleoni was motivated by greed and stole millions from his employer of more than 20 years. He lived far beyond his means and betrayed the trust of his company. The FBI, he noted, will continue to look into people who steal money from other people and companies for their own personal use.

The indictment states that Pierleoni moved funds out of the operating account of the moving firm and into other accounts held by the firm and a related company. He wrote checks from those accounts to pay his bills. He also used the money to pay for sports items, airline tickets, travel expenses, artwork, and restaurant meals.

The man left Collins Brothers Moving Corp. in April 2013. After that, his successor discovered evidence of the theft. Some of the expenses that were discovered included $590,000 for NY Mint coins, $40,000 for jewelry, and $136,000 for artwork from a Manhattan gallery and by Thomas Kinkade. He also used the money to make home equity loan payments.

Pierleoni later met with the FBI after the thefts were found out. He admitted that he took $500,000 in firm funds in the previous two years. He also stated that he had lived far beyond his means for several years. He told them that he sold the coins and artwork for a fraction of the original price because he needed the money.

He was interviewed by the FBI in July and was taken into custody in October.

Pierleoni is 59 and he faces up to 20 years in prison on the mail fraud charge and 20 years on the wire fraud charge. He currently is free on $750,000 bail.

About Grand Jury Indictments

A grand jury is technically independent of the prosecutor, but most of the time, the grand jury will indict almost everyone they are asked to indict. Any time you are being investigated by a grand jury, the chances are high that you are going to be indicted on some sort of criminal charge. If you ever have to appear before a grand jury, you should not say anything that could hurt your criminal defense. This is why you should always have an attorney with you if you have to testify before a grand jury.