Former Office Manager Sentenced for Embezzling Funds

NEWPORT NEWS, VA—Rose Johnson, 45 of Hampton, Virginia, was sentenced yesterday to 36 months in prison, followed by three years of supervised release, for embezzling funds from her employer, Hampton Roads Obstetrics and Gynecology in Hampton, Virginia.

She was ordered to pay $256,126.17 in restitution.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Rebecca Beach Smith. Johnson pled guilty on April 30, 2010.

According to court documents, Johnson worked as an office manager for Hampton Roads Obstetrics and Gynecology beginning in April, 1997. Johnson was responsible for payroll, paying vendors and managing bookkeeping. In early 2007, an accountant preparing a tax return for the company discovered unauthorized company checks totaling approximately $60,000 that had been written to Johnson for non-business related matters that were disguised as checks written to pay office bills. When confronted by her employer Johnson apologized and agreed to repay the misappropriated funds. Johnson made seven payments all of which were returned for insufficient funds. Later it was discovered that Johnson continued unauthorized payroll transactions days after being confronted by her employer, which resulted in her termination.

A more extensive audit revealed the embezzlement committed by Johnson exceeded $270,000. The embezzled funds consisted of company checks used to pay Johnson’s personal bills, as well as others, and Johnson’s use of a company credit card which she also used for personal purchases. These payments were disguised on company books as payments to legitimate vendors. Between September, 2007 and January, 2010, Johnson repaid a total of $30,239.06 to her former employer.

This case was investigated by the FBI. Assistant United States Attorney Brian J. Samuels prosecuted the case on behalf of the United States.

A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.