John H. Martinez, 47, of the 4600 block of Lily Lane, Springfield, Ill., has pleaded guilty to a seven-year fraud scheme that bled Lincoln Land Community College of $695,401. The former telecommunications administrator admitted to forging supervisor signatures, creating fictitious vendors, and funneling stolen checks into his personal bank account — all while posing as a trusted employee.
Martinez, employed from 2005 to February 2012, exploited his authority to order equipment for the college’s phone system. Any purchase over a set threshold required supervisory approval, but Martinez circumvented the rules by forging signatures on authorization forms. He then directed the college to issue checks to shell vendors he controlled or had colluded with, turning institutional funds into a personal piggy bank.
The fraud escalated through brazen tactics. Martinez intercepted checks meant for fake vendors before they left the college mailroom. For one fabricated supplier, he had checks mailed to an invalid address, knowing they’d be returned to him. He deposited the checks directly into his account. Two other so-called vendors were friends — accomplices who cashed checks and handed Martinez kickbacks, keeping a cut for their silence and complicity.
With the stolen cash, Martinez funded a lifestyle far beyond a public college employee’s means. He paid for repeated personal travel, splurged on alcohol, and covered other private expenses while the college absorbed the losses. The fraud went undetected for years, exposing weaknesses in internal oversight and procurement controls.
On Feb. 3, Martinez appeared before U.S. Magistrate Judge Tom Schanzle-Haskins and waived indictment, entering a guilty plea to federal fraud charges. As part of the plea deal, he has agreed to full restitution of $695,401 to Lincoln Land Community College and its insurers. Sentencing is set for June 5, 2017, with prosecutors and defense recommending a guideline range of up to 51 months in federal prison.
The case was investigated by the U.S. Postal Inspection Service, Illinois State Police, and Lincoln Land Police Department, with full cooperation from the college, which referred the matter to law enforcement. Assistant U.S. Attorney Timothy A. Bass is prosecuting. The case lays bare how trust, once exploited, can become a weapon for financial theft in plain sight.
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Key Facts
- State: Illinois
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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