SWANSEA, MA – Jill Martinho, 43, a long-time controller, admitted in federal court today to a brazen scheme that defrauded her employer out of over half a million dollars. Appearing before U.S. District Court Chief Judge William E. Smith, Martinho pleaded guilty to charges of wire fraud and willfully filing a false tax return, effectively ending a case built by a multi-agency task force.
The investigation, spearheaded by the FBI, IRS Criminal Investigation, and the U.S. Secret Service, revealed that Martinho, employed by the company since 2005, exploited a legitimate business practice for personal gain. Between May 2015 and February 2018, she was authorized to use personal credit cards to purchase company supplies, with the understanding she’d be reimbursed. But Martinho didn’t just seek reimbursement – she fabricated card statements and submitted claims totaling approximately $1,017,295, despite being entitled to only $459,224.
This inflated reimbursement request resulted in a loss of approximately $557,974 for the company. Federal prosecutors detailed in court how Martinho systematically siphoned funds, treating the company account as a personal slush fund. The scheme wasn’t a momentary lapse, but a sustained, calculated effort to enrich herself at her employer’s expense.
Adding insult to injury, Martinho failed to report any of this fraudulently obtained income to the IRS. She didn’t pay the taxes due on the stolen funds, further compounding her criminal actions. Investigators meticulously traced the funds, uncovering a deliberate attempt to conceal the illicit gains from both the company and the government.
Assistant U.S. Attorney Lee H. Vilker, who prosecuted the case, will be seeking a significant sentence when Martinho appears before Judge Smith again on July 19, 2019. Wire fraud carries a potential sentence of up to 20 years imprisonment, a fine of $250,000 (or twice the financial gain/loss), and five years of supervised release. The tax charge carries a maximum of three years in prison, a $100,000 fine, and three years of supervised release.
The U.S. Secret Service, typically known for protecting national leaders, has increasingly focused on financial crimes, recognizing the devastating impact they have on businesses and individuals. Special Agent in Charge Stephen Marks emphasized the agency’s commitment to investigating these types of offenses, alongside partners at the FBI and IRS. This case serves as a stark reminder that financial crimes, no matter how sophisticated, will be pursued and prosecuted to the fullest extent of the law.
Related Federal Cases
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- Mark O. Wittenmyer, $500,000 Wire Fraud Scheme, Holland OH, 2023 · Kentucky
- Joel Steinger Guilty of Conspiracy to Commit Mail and Wire Fraud, M… · Massachusetts
- Merrill Sentenced to Wire Fraud Conspiracy and Wire Fraud, MA, 2023 · Washington
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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