Kristina Hosea Sentenced for $500K Embezzlement

Corona woman Kristina Hosea, 46, has been sentenced to 27 months in federal prison for embezzling $515,619 from her employer, Advanced Real Estate Services, Inc. (ARES), an Irvine-based property management company. The sentence, handed down by United States District Judge Cormac J. Carney, includes full restitution to the defrauded company.

Hosea, who served as assistant to the president at ARES, pleaded guilty in 2015 to one count of wire fraud. She admitted to systematically siphoning company funds from at least September 2008 through May 2014 by wiring money to her personal accounts, cashing over 100 company checks made payable to herself or fictitious parties, and charging personal expenses to company credit cards.

According to court documents, Hosea used stolen funds to cover rent, finance car payments, contribute to a retirement account, and even pay for a quinceañera for her daughter. Her fraudulent activity spanned years, enabled by her access to financial systems and her role in reviewing invoices and preparing checks for the company president’s signature.

To conceal her crimes, Hosea altered bank and credit card statements, fabricated invoices, and deleted electronic records of checks from ARES’s computer systems. These deliberate actions delayed detection and allowed her to live beyond her legitimate means while betraying the trust placed in her by her employer.

“This defendant stole funds for years to pay for rent, her cars, a retirement account and a quinceanera for her daughter,” said United States Attorney Eileen M. Decker. “Businesses place trust in their employees who handle their finances, and crimes like this defendant’s harm the business and all of the business’ employees.”

“The defendant supplemented her income with stolen company funds and became accustomed to living beyond her means by regularly defrauding her employer,” said Deirdre Fike, Assistant Director in Charge of the FBI’s Los Angeles Field Office. Judge Carney ordered Hosea to surrender and begin her sentence by February 21. The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Gregory W. Staples of the Santa Ana Branch Office.