Hutchinson Woman Charged with Embezzling More Than $2 Million from Employer

MINNEAPOLIS – A Hutchinson woman has been charged with mail fraud for embezzling over $2 million from her employer, announced United States Attorney Andrew M. Luger.

According to court documents, Jennifer Lee Rath, 52, worked as the financial controller at R&R Excavating, Inc., a heavy civil construction company located in Hutchinson, Minnesota. As the financial controller, Rath was responsible for managing R&R’s payroll, accounts receivable, accounts payable, company credit cards, and corporate bank accounts. Rath used her position to embezzle funds and convert them to her own use and benefit. Rath routinely drafted manipulated checks that appeared to cover R&R’s liabilities, but instead she used the funds to pay her own credit card debts, tax liabilities, or cover other personal expenses. Rath also processed electronic fund transfers from R&R’s bank accounts to pay personal expenses and improperly charged personal expenses to R&R’s company credit cards. Rath manipulated R&R’s accounting software to conceal the money she stole, avoid detection, and prolong her fraud scheme.

In total, between August 2013 and December 2019, Rath knowingly and willfully embezzled $2,061,328.67 from her employer.

Rath will make her initial appearance in U.S. District Court at a later date.

This case is the result of an investigation conducted by the FBI and the Hutchinson Police Department.

Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.

The charges contained in the information are merely accusations, and the defendant is presumed innocent unless and until proven guilty.