Dewitt Woman Pleads Guilty to Mail Fraud

United States Attorney Andrew T. Baxter announced today that a Dewitt woman has pleaded guilty in federal court to mail fraud.

Cheryl A. Nelli, 54, 3315 East Genesee Street, Dewitt, admitted to embezzling over $595,000 from Dairylea Cooperative, Inc., where she was formerly employed. From May, 2002 though May 1, 2009, Nelli served as a Producer Payments Administrator at Dairylea, 5001 Brittonfield Parkway in Syracuse. Among her duties was the calculation of monthly milk payments to farmer members for milk sold on their behalf by Dairylea. Nelli devised and executed a scheme to defraud Dairylea by fraudulently exaggerating and inflating the payment amounts due some farmer members. When Dairylea issued payments for the fraudulently inflated amounts, Nelli misappropriated a portion of the proceeds and used it for her own benefit. As a result, Dairylea suffered a financial loss of $595,260.

Nelli faces a maximum prison term of twenty years and a fine of $1,190,520. United States District Court Judge David N. Hurd scheduled sentencing for January 8, 2010 at 2:00 p.m. in Utica.

The case was investigated by the Federal Bureau of Investigation. The prosecution is being handled by Assistant United States Attorney Edward R. Broton.