CPA Bleeds Retailer Dry: $2.8M Embezzlement

NEW ORLEANS, LA – Michael Sapera, a Mandeville man formerly entrusted with the finances of a New Orleans-based retail clothing business, has admitted to systematically pilfering $2.8 million from his employer over nearly two decades. U.S. Attorney Kenneth A. Polite announced today that Sapera pled guilty to a four-count Bill of Information charging him with bank fraud, aggravated identity theft, and wire fraud – violations of Title 18, United States Code, Sections 1344, 1028A, and 1343.

The scheme, stretching from 1996 to 2014, involved a calculated and prolonged abuse of Sapera’s position as Chief Financial Officer (CFO) and Director of Information Technology for Company “A”. As CFO, Sapera had full access to all corporate bank accounts, including the corporate PayPal account, giving him the means to execute his audacious fraud. He wasn’t just skimming; this was a long-con designed to enrich himself at the expense of his employer.

Court documents detail how Sapera began stealing corporate checks in July 1996, accumulating approximately $2,192,500 over the years. He brazenly forged the signature of his employer on roughly 430 checks, endorsing them to himself before depositing them into his personal bank account. This wasn’t a one-time lapse in judgment, but a sustained, methodical effort to siphon funds. But the check fraud was only the beginning.

From July 2011 to August 2014, Sapera initiated 45 unauthorized wire transfers totaling $582,080 from Company “A’s” bank account directly into his personal account. Then, from June to October 2014, he added another $35,000 by draining funds from the company’s PayPal account, quickly transferring the money to his personal PayPal and then to his bank. The total illegal gain to Sapera amounted to $2,809,580, while Company “A” suffered a total loss of approximately $2,847,752.

Sapera’s defense hinged on a plea agreement and factual basis outlining the evidence against him. U.S. District Judge Eldon E. Fallon has scheduled sentencing for May 28, 2015. The extent of Sapera’s punishment remains to be seen, but the scale of his betrayal is clear. This wasn’t a desperate act, but a calculated and cold-blooded theft perpetrated by a trusted insider.

U.S. Attorney Polite lauded the Federal Bureau of Investigation for their work on the case. Deputy Chief of the Criminal Division, Assistant United States Attorney Matt Coman, is leading the prosecution. The Grimy Times will continue to follow this case and report on the sentencing. This serves as a stark reminder that even those in positions of trust are capable of profound deceit and financial ruin.