Financial Analyst Sentenced to Federal Prison for Embezzling Over $1.1 Million
ATLANTA, Georgia – In a shocking case of corporate greed, Errol Buggs, a former principal finance analyst at Honeywell International, Inc., has been sentenced to two years in federal prison for embezzling more than $1.1 million from his employer in a brazen fraud scheme.
According to court documents, Buggs, 44, of Atlanta, Georgia, used his position to approve fictitious vouchers and bypass internal controls, causing 28 wire transfers and a check to be sent to his bogus Georgia company, Tredd LLC. The money trail led to a bank account controlled by Buggs in metropolitan Atlanta, with a total amount embezzled of $1,134,493.35.
“Financial professionals who are unscrupulous are an insider threat to their employers because they have access to payment systems and can learn how to circumvent internal controls to enrich themselves,” said U.S. Attorney Byung J. “BJay” Pak. “Employers must remain vigilant against fraudulent vouchers, fictitious vendors, and sharing or theft of log-in credentials by employees.”
Errol Buggs was sentenced to two years in federal prison, to be followed by three years of supervised release, on November 15, 2018, by U.S. District Judge Thomas W. Thrash, Jr. He was also ordered to pay $1,134,493.35 in restitution to Honeywell.
Buggs’s scheme was uncovered when an employee at a Honeywell subsidiary in Canada discovered three suspicious wire transfers to a supposed vendor in Georgia for which there were no supporting invoices. An investigation by the Federal Bureau of Investigation (FBI) revealed that Buggs had incorporated Tredd LLC as a shell company and used a colleague’s log-in credentials to approve fictitious vouchers and bypass internal controls.
The case serves as a stark reminder of the importance of internal controls and the need for employers to remain vigilant against insider threats. As U.S. Attorney Pak noted, “Wire fraud is an offense the FBI takes very seriously. Buggs took advantage of his position as a financial analyst for his own personal greed, violating the trust put in him by his employer.”
Buggs’s sentence is a testament to the FBI’s commitment to investigating and prosecuting cases of corporate greed and insider fraud. The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Brian Pearce.
For further information, please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Defendant: Errol Buggs
Criminal Charges: Embezzlement
City and State: Atlanta, Georgia
Date: November 15, 2018
Sentence: Two years in federal prison, followed by three years of supervised release
Dollar Amounts: $1,134,493.35
Key Facts
- State: Georgia
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
