Stephanie Baker, Mail Fraud, Missouri 2021

ST. LOUIS, MO - In a shocking turn of events, 48-year-old Stephanie Baker, of O'Fallon, Missouri, pleaded guilty to three counts of mail fraud related to her former position in the accounting department of Prairie Farms Dairy Supply Company.

According to the indictment and plea agreement, Baker was an employee of Prairie Farms, working in the company's accounting department. Her duties and responsibilities included applying and allocating Prairie Farms customer payments to their customer accounts.

However, Baker devised a scheme to defraud and obtain money from Prairie Farms and C.S., the owner of a Dairy Queen restaurant franchise in southern Illinois, by means of materially false and fraudulent pretenses, representations, and promises.

Baker received and applied payments from Prairie Farms customers other than DQ Columbia to DQ Columbia's account, resulting in an approximate loss of $192,336.74. She also withheld and did not mail out statements to the other Prairie Farms customers, so they would not realize that their prior payments to Prairie Farms had not been credited to their accounts.

Baker falsely represented to C.S. that, in order for DQ Columbia to continue receiving food, dairy products, and supplies from Prairie Farms, C.S. needed to make cash payments personally to Baker. Baker kept the cash she received from C.S., did not credit DQ Columbia's account for the cash payments, and used the cash for her own personal use, including for the boarding and related expenses for a show horse and other general living expenses.

Baker faces a potential statutory maximum sentence of 20 years imprisonment and a fine of $250,000. Sentencing is set for January 12, 2021, before United States District Judge Henry Autrey.

The Federal Bureau of Investigation investigated this case, with Assistant U.S. Attorney Hal Goldsmith handling the case for the U.S. Attorney's Office.

Baker's guilty plea marks a significant blow to the accounting industry, highlighting the importance of internal controls and oversight in preventing such schemes.

Source: https://www.justice.gov/usao-edmo/pr/former-company-accounting-clerk-pleads-guilty-defrauding-company