Idalee Johnston, Embezzlement, Rhode Island 2024

PROVIDENCE – A brazen embezzlement scheme has left an auto body repair shop in Cranston, Rhode Island, out $580,000. Idalee Johnston, 47, a secretary employed at Ideal Auto Body, allegedly devised a scheme to defraud her employer of the substantial sum.

According to the indictment unsealed today, Johnston absconded with the proceeds from approximately 190 checks provided to customers by insurance companies as payment for repairs to their vehicles. The scheme allegedly took place over two years, beginning in 2016.

It is alleged that Johnston either did not have some customers sign direct payment forms for insurance payments to be made directly to the auto body shop, or did not forward signed payment forms to insurance companies. As a result, insurance payment checks were sent directly to customers who, in turn, provided the checks to Johnston as a representative of Ideal Auto Body as payment for repairs made to their vehicles.

Johnston allegedly devised a scheme to steal and deposit some of the checks, some on which she forged signatures, into her bank account. In other instances, stolen checks were provided to family members to be deposited into their bank accounts. Johnston instructed family members to deposit the stolen checks, withdraw the funds, and provide the money to her. In return, Johnston provided the family members with a small portion of the proceeds.

Johnston was arrested earlier today by FBI agents and appeared before U.S. District Court Magistrate Judge Patricia A. Sullivan charged with mail fraud and aggravated identity theft. She was released on personal recognizance.

The case is being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Terrence P. Donnelly.

A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

In this case, the defendant’s real full name is Idalee Johnston, and the exact criminal charges are mail fraud and aggravated identity theft. The city and state involved are Providence, Rhode Island. The exact date of the crime is not specified, but it allegedly began in 2016 and continued for approximately two years. As for the sentence or outcome, Johnston was released on personal recognizance. The dollar amount involved is $580,000.

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