Irene Marie Brooner, $3 Million Fraud Scheme, Missouri 2014

Kansas City woman Irene Marie Brooner, 52, has been indicted for a nearly $3 million fraud scheme that forced her employer into bankruptcy.

Brooner, a certified public accountant, worked at Galvmet, Inc., a sheet metal fabrication facility and steel service center located in Kansas City, from 2001 until her termination in February 2014.

At its peak in 2008, the company had 26 employees and $14 million in annual sales. Galvmet filed for bankruptcy and ceased operations in 2014. At the time of closing, the company had 18 to 20 employees and $10 million in annual sales.

Brooner’s duties as controller included managing payroll, accounts receivable and payable, and maintaining the ledger at Galvmet.

According to the federal indictment, for approximately 10 years (January 2004 until February 2014) Brooner created unauthorized Automated Clearing House (ACH) transactions from Galvmet’s bank account. An ACH is a batch-oriented funds transfer system that includes direct deposits of payroll from companies. Brooner allegedly deposited these funds into her personal bank accounts. Brooner also manipulated ACH transactions to inflate her salary, the indictment says, by increasing her bi-weekly payments without the knowledge or authorization of her employer. She allegedly deposited these funds into her bank accounts.

As a result of Brooner’s fraud scheme, the indictment says, Galvmet lost at least $1,863,914. As a result, Galvmet declared bankruptcy, and was forced to cease operations. To keep the scheme going, Brooner allegedly falsified documents to support Galvmet’s operating loan with Missouri Bank & Trust, causing a loss to the bank of $1.1 million.

Broner allegedly converted the embezzled funds for her personal enrichment. The total loss from Brooner’s alleged fraud scheme was at least $2,963,914. Brooner allegedly spent the embezzled funds on personal items.

The indictment lists numerous items purchased by Brooner with the embezzled funds, including a 2004 Lexus R33 sport utility vehicle on which she made 64 payments totaling $51,813. Brooner also bought 69 pieces of jewelry and accessories from Meierotto’s Midwest Jewelers totaling approximately $29,701 and 82 pieces of jewelry and accessories from Tivol Jewelers totaling approximately $81,686 in jewelry.

Broner, a certified public accountant, was charged in an 11-count indictment returned under seal by a federal grand jury in Kansas City on Friday, June 27, 2014. The indictment was unsealed and made public today upon Brooner’s arrest and initial court appearance.

Broner's spending included paying off her mortgage for $289,290, buying jewelry totaling $111,387, and spending at least $400,392 on clothing and other retail, $97,180 on restaurants, $78,439 on vehicles, $169,389 on furniture and home decor, $62,003 on travel, $38,317 on electronics, $21,346 in ATM withdrawals, $59,571 on spa visits and beauty items, $68,745 on tuition for her children, $18,383 on alcohol, $104,060 to her children, $216,377 in assorted checks under $500, $64,557 in donations, $254,168 in other credit cards, and by purchasing other items.

The total loss from Brooner’s alleged fraud scheme was at least $2,963,914.

Mandatory Facts: Defendant: Irene Marie Brooner, Criminal Charges: 11-count indictment for a nearly $3 million fraud scheme, City and State: Kansas City, Missouri, Exact Date: June 27, 2014, Sentence or Outcome: Currently indicted and awaiting trial.

Source: https://www.justice.gov/usao-wdmo/pr/kc-woman-indicted-3-million-fraud-scheme-forced-employer-bankruptcy