Kevin Lee Co, 45, of Rocklin, California, admitted in federal court today to stealing $4.8 million from his employer through a years-long wire fraud and money laundering scheme. The confession marks the end of a high-dollar betrayal that saw corporate funds funneled into luxury cars, extravagant home furnishings, and even $1 million spent on player fees for an online video game.
Co, who served as controller at Holt of California from May 2008 until March 2015, used his position of trust to siphon off company funds systematically. As head of the accounting department, he manipulated financial records and authorized unauthorized transfers, all while concealing the theft from oversight. The embezzled money vanished into a web of personal indulgences, including NFL and NBA season tickets—symbols of a lifestyle built on stolen cash.
But Co didn’t just spend the money—he laundered a portion to hide its origins. Court documents reveal he engaged in financial transactions designed to obscure the paper trail, violating federal anti-money laundering statutes. The scheme unraveled after federal investigators from the IRS Criminal Investigation and the Federal Bureau of Investigation launched a joint probe into Holt’s financial discrepancies.
Assistant United States Attorneys Brian A. Fogerty and Kevin C. Khasigian are leading the prosecution. They laid out a case showing not just greed, but a calculated effort to exploit corporate controls. Co’s access and authority allowed him to operate under the radar for nearly seven years—long enough to drain millions from a business that trusted him with its books.
Now, Co faces the consequences. He is scheduled to be sentenced by United States District Judge Troy L. Nunley on May 26, 2017. For wire fraud, he could get up to 20 years in prison and a $250,000 fine. The money laundering charge carries another 20 years and a fine of up to $500,000—or twice the value of the laundered funds. The final sentence will weigh statutory factors and federal guidelines.
This case lays bare how one man with a title and access can bring financial ruin from within. The $4.8 million theft isn’t just a number—it’s a warning. Federal authorities are sending a message: steal from the system, and the system will come for you.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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