NEW ORLEANS, LOUISIANA – A Dallas-based financial manager is facing up to two decades behind bars after admitting to a brazen, six-year scheme to pilfer over $233,000 from a trusting client. Katie Laroche, 54, pleaded guilty Wednesday to one count of wire fraud, according to federal prosecutors.
Laroche operated Capital City Consulting Firm, a business that promised financial management services. She held complete control over the finances of Victim 1, including full signatory authority and unrestricted access to their bank accounts. But instead of managing the money responsibly, Laroche systematically drained funds for personal gain, beginning around February 2015 and continuing until March 2021.
The scheme was simple, yet effective. Laroche falsely claimed she was using client funds to cover federal income taxes. When Victim 1 inquired about their tax obligations, Laroche doubled down on the deception, fabricating information to conceal her theft. She also authorized automatic withdrawals from the client’s accounts to pay for an automobile insurance policy for someone *other* than the client, all without their knowledge or consent.
The total haul: $233,363.53. That’s the amount Laroche systematically siphoned from Victim 1’s accounts over six years, leaving them financially vulnerable and betrayed. The U.S. Attorney’s Office for the Eastern District of Louisiana, along with the U.S. Secret Service, built the case, uncovering the intricate web of lies and fraudulent transactions.
Laroche now faces a harsh reckoning. She could receive up to twenty years in prison, a hefty fine of up to $250,000, and up to three years of supervised release after serving her sentence. A mandatory $100 special assessment fee will also be imposed. U.S. Attorney Duane A. Evans praised the Secret Service’s investigation, highlighting the agency’s crucial role in combating financial crimes.
Assistant U.S. Attorneys Nicholas D. Moses and Jordan Ginsberg are prosecuting the case. Judge Sarah S. Vance has scheduled Laroche’s sentencing hearing for October 19, 2022, where she will finally answer for her betrayal of trust and calculated theft. This case serves as a stark reminder that even those entrusted with managing finances can fall prey to greed, and that the Secret Service remains vigilant in pursuing those who exploit the financial system for personal enrichment.
Related Federal Cases
- Alaina Stansell, Credit Card Embezzlement, VA 2013 · Indiana
- Misty Johnson, Embezzlement, LA 2016 · Georgia
- Scott Breaux, Bank Embezzlement, LA 2016-2017 · Washington
- Bob G. Dean Jr., Neglect of Nursing Home Residents, Louisiana, 2023 · Texas
- FDIC Agencies, Regulatory Assistance for Financial Institutions, Wa… · Texas
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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