Falcon Drilling Controller Admits $10M Embezzlement

PITTSBURGH, PA – Cheryl Diane Brooks, 43, of Clymer, Pennsylvania, confessed in federal court today to a brazen scheme that siphoned nearly $10 million from Falcon Drilling Company. The former controller pleaded guilty to conspiracy to commit mail fraud, mail fraud, and tax fraud, admitting her role in a years-long operation that left the Indiana, PA-based company reeling.

United States Attorney David J. Hickton announced that Brooks entered a guilty plea on seven counts before Chief United States District Judge Gary L. Lancaster. Court documents reveal the fraud spanned from 2007 to 2012, during which Brooks allegedly colluded with an unnamed accomplice to systematically pilfer funds.

The scheme, described by prosecutors as meticulously planned, involved forging checks, creating fake invoices to both legitimate and phantom vendors, and deliberately misleading company auditors. Brooks personally benefited to the tune of approximately $557,000, a substantial cut of the nearly $10,000,000 defrauded from Falcon Drilling.

Federal investigators from the United States Postal Inspection Service and the Internal Revenue Service painstakingly pieced together the evidence, exposing the elaborate network of deception. The investigation highlighted the vulnerability of even established companies to internal fraud and the lengths to which individuals will go to enrich themselves at another’s expense.

Judge Lancaster has scheduled sentencing for May 31, 2013. Brooks faces a potential sentence of up to 74 years imprisonment, a hefty fine of $1,300,000, or a combination of both. The final sentence will be determined based on sentencing guidelines, factoring in the severity of the crimes and any prior criminal history.

Assistant United States Attorney Gregory C. Melucci is leading the prosecution. This case serves as a stark reminder that even seemingly sophisticated financial crimes will be aggressively pursued and prosecuted by federal authorities. The Grimy Times will continue to follow this case and report on the sentencing.