San Diego CFO Sentenced for Embezzling Over $1 Million to Fund Fledgling Football League

Jaime Cuadra, the former Chief Financial Officer of Oceanic Enterprises, Inc., was sentenced to serve 41 months in custody for his conviction of wire fraud and filing a false federal income tax return.

The charges stemmed from Cuadra’s embezzlement of $1,089,813.26 from Oceanic and its parent company, Umami Sustainable Seafood, Inc., a San Diego-based, publicly traded company.

According to court documents, Cuadra embezzled the money from 2010 to 2013 by taking advantage of his access to one of Oceanic’s business accounts as the company’s CFO. He falsified Oceanic’s financial records by coding illicit transfers and expenditures as legitimate business expenses.

Cuadra not only served as Oceanic’s CFO but also as the President and CEO of a fledgling football league. He converted Oceanic’s funds to financially support the football league as well as for his personal benefit.

Cuadra used stolen funds to develop the football league and attract investors by paying league executives, as well as the league’s marketing, consulting, and public relations fees. He also used embezzled funds for personal expenditures, including support for outside business ventures, leasing a Porsche Cayenne, travel, hotels, and meals, and various miscellaneous purchases.

Cuadra’s falsification of his tax returns during the years he defrauded Oceanic and Umami resulted in a cumulative tax loss of $387,347.58. He failed to report his embezzled income on his 2010, 2011, and 2012 federal tax returns.

United States Attorney Laura E. Duffy praised the hard work of the agents from the Federal Bureau of Investigation and the Internal Revenue Service, saying that Cuadra’s brazen theft of corporate funds was born from base motives – ego and greed.

Jaime Cuadra, Crime: Wire fraud and filing a false federal income tax return, State: California, Year: 2013, Sentence: 41 months in custody, Fine: $1,089,813.26 restitution and $387,347.58 in back taxes.