Posted on: January 6, 2014

Former CFO indicted on fraud charges


All too often, companies put themselves in jeopardy by placing almost complete control of their finances with a single executive. When oversight of corporate bank accounts and income is consolidated in this way, rather than continually monitoring finances through accounts payable audits, fraud can go undetected for quite some time.

According to the Federal Bureau of Investigation, Gregg Pierleoni has been indicted on charges that he embezzled nearly $6 million in funds from a moving company at which he formerly held the position of chief financial officer. 

The Greenwich Time reported that Pierleoni, whose official residence is in New Fairfield, Conn., held his former executive position at Collins Brothers Moving Corporation, which is based in Larchmont, N.Y.

The charges Pierleoni faces include wire fraud and mail fraud, the FBI noted. The 59-year-old man's alleged crimes took place over a six-year period, and he held the office of CFO at Collins Brothers from 1987 to 2013.

In the FBI's statement, prosecuting attorney Preet Bharara accused Pierleoni of using the embezzled funds to support habits beyond his means.

"As alleged, Pierleoni abused the trust placed in him by his employer to steal a substantial amount of money so that he could enjoy a lavish lifestyle. He now faces having to pay the real price for that lifestyle," Bharara commented. The indictment alleges that Pierleoni spent company money to pay off his American Express bills and purchase airline tickets, as well as restaurant meals, sports memorabilia and artwork.

George Venizelos, assistant director for the FBI, reaffirmed the agency's commitment to pursuing those who commit crimes like the ones of which Pierleoni has been accused. 

"The FBI will continue to investigate and hold accountable individuals who steal and line their pockets with their victim's' hard-earned money," Venizelos said. The mail fraud and wire fraud charges on which Pierleoni has been indicted each carry with them a maximum sentence of 20 years' imprisonment.

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