Russel Edward Hester, Embezzlement, North Carolina 2023

ASHEVILLE, N.C. – Russel Edward Hester, a 72-year-old Rutherfordton man, has pleaded guilty to embezzling over $374,000 from the Rutherfordton ABC Store where he worked as a manager for nearly a decade.

Hester, who appeared before U.S. Magistrate Judge W. Carleton Metcalf yesterday, pleaded guilty to federal charges of wire fraud and money laundering. He is currently released on bond and faces up to 20 years in prison for the wire fraud charge and 10 years in prison for the money laundering charge.

According to plea documents, Hester embezzled at least $374,807.10 from the Rutherfordton ABC Store between December 2021 and October 2023. He used the store’s debit card to withdraw funds at Two Kings Casino, primarily to gamble on slot machines.

On days where Hester used the store’s debit card, he won jackpots totaling $1,469,368.31, and deposited the winnings into his personal bank accounts. For example, on July 4, 2023, Hester used the store’s debit card to withdraw $3,000 at Two Kings Casino, won a jackpot of $18,350, and deposited the winnings into a bank account under his control.

Hester also took steps to cover up the embezzlement by providing altered and falsified bank statements to the auditor during the store’s 2023 annual independent audit.

U.S. Attorney Dena J. King commended the IRS-CI, USPIS, and the Rutherfordton Police Department for their investigation of the case and thanked the Rutherford County District Attorney’s Office for its invaluable assistance.

Assistant U.S. Attorney Alex M. Scott of the U.S. Attorney’s Office in Asheville is prosecuting the case.

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