MEMPHIS, TN – Cynthia Shellenberger, 52, of Tipton County, Tennessee, will spend the next 51 months in federal prison after being sentenced for systematically looting Dozertrax USA, a Drummonds-based business. U.S. Attorney D. Michael Dunavant announced the sentence today, a small victory for a company clinging to survival after being bled dry by a trusted employee.
Court records reveal that Shellenberger, hired as an office manager/bookkeeper in May of 2017, didn’t waste any time exploiting her position. Over roughly ten months, between May 2017 and March 2018, she siphoned off a staggering $164,761 in company funds, funneling the money directly into her own pockets to cover personal expenses. The scheme was uncovered only when Shellenberger conveniently took sick leave, forcing owners Ron and Sherry Clowes to confront the gaping hole in their finances.
The Clowes family painted a grim picture during the May 14, 2019 sentencing hearing before U.S. District Court Judge John Fowlkes Jr. Sherry Clowes testified that the fraud had brought her and her husband to the brink of losing everything they’d built. This wasn’t a faceless corporation; it was a family business crippled by greed. Shellenberger’s lengthy history of theft and fraud convictions only added insult to injury.
Judge Fowlkes, clearly unimpressed with Shellenberger’s pattern of deceit, handed down the 51-month sentence, followed by three years of supervised release. But prison isn’t the only price Shellenberger will pay. As a condition of her release, she’s been ordered to make full restitution to Dozertrax USA, a hollow promise perhaps, given her history.
“Financial fraud can happen anywhere, and can be devastating to local businesses,” stated U.S. Attorney Dunavant. “The defendant used her position of trust and authority to steal proceeds for her personal benefit, and her dishonesty has been exposed. We are pleased that justice has been achieved on behalf of the victims, and we commend the FBI and TCSO for their outstanding investigation in this disappointing case.” The statement rings hollow to those familiar with the often-slow wheels of justice and the difficulty of recovering stolen funds.
The investigation was a joint effort between the FBI and the Tipton County Sheriff’s Office. Assistant U.S. Attorney David Pritchard successfully prosecuted the case, securing the conviction and sentence. While Shellenberger’s scheme is over, the damage to Dozertrax USA, and the Clowes family, will likely linger for years to come. This case serves as a stark reminder that even seemingly small businesses are vulnerable to those who exploit trust for personal gain.
Related Federal Cases
- Greeneville Banker Miller Gets 3 Years for $1M Scheme · Tennessee
- Tax Cheat Tracey Brown Gets a Year in the Slammer · Tennessee
- Burnett Gets 54 Months for Tax Refund & Bank Fraud Schemes · Tennessee
- Independence Woman Gets 21 Months for Stealing $500,000 from Employer · South Dakota
- Tennessee Man Roman Gets 71 Months for $1.9M Ponzi Scheme · Kansas
Key Facts
- State: Tennessee
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
