Michael Schute, Wire Fraud and Tax Evasion, Dubuque IA, 2013

GRIMY TIMES EXCLUSIVE: In a stunning turn of events, Michael Schute, the former Controller of a Dubuque company, has pleaded guilty to one count of wire fraud and one count of filing false tax returns. The 50-year-old man admitted to embezzling over $340,000 from the company between 2008 and his termination in April 2013.

Schute’s scheme involved writing checks on the company bank account to pay off personal credit cards and other bills, a crime of deception that he concealed by falsifying the company books to make it appear as though the funds were used for company debts. This fraudulent activity went undetected until his firing, when the true extent of the embezzlement came to light.

When filing his tax returns from 2008 through 2013, Schute falsely concealed the illegal income he received from the embezzlement, a clear violation of the law that deems all income taxable. The Internal Revenue Service (IRS) and the Dubuque Police Department (DPD) conducted a thorough investigation into this case.

Sentence before United States District Court Chief Judge Linda R. Reade is pending after a presentence report is prepared. Schute currently remains free on bond until his sentencing hearing. He faces a possible maximum sentence of 23 years’ imprisonment, a $500,000 fine, or twice the amount of funds embezzled, $200 in special assessments, and up to four years of supervised release following any imprisonment.

The prosecution is being handled by Assistant United States Attorney C.J. Williams, with the investigation led by the IRS and DPD. Court file information for this case, 15-cr-1003-LRR, is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

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