Alcona county treasurer arrested
Man charged with forgery and multiple counts of embezzlement
A former treasurer of Alcona County in Michigan has been arrested after allegedly investing more than $1.2 million (£600,000) of county funds in Nigerian fraud scams.
Thomas Katona, who was treasurer of the county for 13 years, has been charged with forgery and multiple counts of embezzlement. Both charges carry a jail sentence of 10 years or more.
County treasury employees became suspicious of Katona's dealings after local bank officials informed them that he had directed several unauthorised transfers to overseas accounts during late 2006, including to beneficiaries linked with Nigerian 419 scams.
It was then discovered that he had made further payments using his personal savings and had previously been advised by bank officials that he was investing money in fraudulent schemes.
'Nigerian scam emails promise the world but deliver nothing in return for the cash that people continue to invest,' said Graham Cluley, senior technology consultant at Sophos.
'Thomas Katona may well have thought it possible to return the funds that were allegedly embezzled, but irrespective of his intentions, the upshot is that his County must now suffer a financial shortfall for the year ahead.'
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