RICHMOND, Va. — In a significant case of embezzlement that has shaken the local business community, a man from New York entered a guilty plea today, acknowledging his involvement in a scheme that led to over $1.3 million being siphoned from his Virginia-based employer.
The individual, identified as Luis Lee, 38, held a pivotal role at a Fredericksburg-headquartered health services organization known for its extensive programs catering to counseling, therapy, foster care, and support for those with autism and intellectual and developmental disabilities. Beginning his tenure in 2019 as a Senior Financial Analyst and later ascending to the role of Treasury Manager in October 2022, Lee was entrusted with crucial financial oversight responsibilities.
Court filings reveal a calculated fraud initiated in March 2020, where Lee, alongside the company’s Chief Financial Officer (CFO), crafted a non-existent entity, JKemp Consulting LLC. This maneuver involved the creation of a business checking account under JKemp’s name, accompanied by a counterfeit engagement letter detailing a monthly payment of $100,000 for supposed consulting services. This led to the submission and processing of 12 fraudulent invoices totaling $1,140,000, with the ill-gotten gains divided between Lee and the CFO.
The duo didn’t stop there. They exploited the company’s tuition reimbursement program, fabricating evidence of Lee’s enrollment in a Master of Business Administration program at Hofstra University to claim the maximum allowed reimbursement over three years, culminating in an unjust claim of $162,212 in November 2022. An additional scheme saw Lee unlawfully receiving approximately $6,000 for unused vacation hours upon the CFO’s directive.
This intricate web of deceit ultimately led to the misappropriation of roughly $1,323,962 from the health services provider, highlighting a significant breach of trust and financial misconduct. Lee now faces a sentencing hearing scheduled for July 26, with potential prison time of up to 20 years. The community and the company affected await the final judgment, hoping for closure to this audacious act of fraudulence.