Irene M. Scott, $1.6 Million Embezzlement, Texas 2021

A San Antonio woman was sentenced to a lengthy prison term for stealing over $1.6 million from her former employer, a private law firm in the city.

Irene M. Scott, 42, was sentenced to 87 months in prison for her role in the massive embezzlement scheme, which took place between 2012 and 2020.

According to court documents, Scott was a bookkeeper and financial manager for the law firm, where she was responsible for issuing business credit cards to employees and closing their accounts when they left the firm. She also maintained the firm’s financial ledgers and paid vendors and operating expenses.

However, Scott used her position to steal from the firm, making non-firm related purchases totaling over $1.2 million using three office credit cards assigned to other employees. An estimated three-fourths of those funds went to support her husband’s outdoor lighting business.

Scott also stole an estimated $417,000 by fraudulently withdrawing from the firm’s operating account about 200 times during a two-year period beginning in January 2018. She disguised those withdrawals in the firm’s ledger as vendor payments.

The embezzlement scheme went undetected for years, with Scott committing the fraudulent acts without the knowledge or authorization of any member of the firm.

“The sentencing of Ms. Scott today should sound the alarm to those planning to steal from their employers with the idea that they are going to cook the books to hide their crimes,” said U.S. Attorney Ashley C. Hoff. “You will be investigated, identified and prosecuted to the full extent of the law.”

Scott pleaded guilty to three counts of wire fraud and one count of bank fraud on May 25, 2021. The FBI investigated the case, with Assistant U.S. Attorneys Matthew W. Kinskey and Joseph E. Blackwell prosecuting the case.

The case highlights the importance of accounting transparency and the need for businesses to regularly review their financial records to prevent embezzlement.

Scott’s sentence is a reminder that embezzlement is a serious crime that can have severe consequences, including lengthy prison terms and significant financial penalties.

Related Federal Cases