
By the A.M. Costa
Rica staff
According
to the U.S. Department of Justice,
a former accounting manager who is
facing 10 wire fraud counts for
allegedly embezzling more than $36
million from his employer’s client
and then using the bulk of the
ill-gotten funds to pay off tens
of millions of dollars of his
credit card debt has been
extradited to the United States
from Costa Rica.
The suspect, Paul McDaniel, 42 who
resided in Orange. California,
before fleeing to Costa Rica in
early 2017, arrived Thursday at
Los Angeles after extradition
proceedings in Costa Rica.
McDaniel was scheduled to be
arraigned in United States
District Court.
According to the case, from July
2009 until December 2016, McDaniel
allegedly embezzled the funds from
a media technology services firm
based in downtown Los Angeles.
McDaniel was initially an
independent contractor for and
then an employee of a downtown Los
Angeles-based professional
services firm providing accounting
assistance. McDaniel was assigned
to work at the tech company as an
accounting manager. As part of his
job, he would request payments to
be made from one account to pay
purported to vendors.
According to the indictment filed
in September 2017, during the time
he was working with the company
McDaniel formed a Nevada
corporation with a name similar to
one of the company’s vendors and
then opened a bank account – under
which he had complete control – in
that entity’s name.
He is accused of using his
authority as accounting manager to
approve and direct payments
totaling more than $36 million to
this bank account.
To justify the payments, McDaniel
is accused of creating false and
fictitious invoices on the
letterhead of actual vendors,
falsely stating that particular
goods had been provided to the
company.
The fraudulent payments were wired
to the McDaniel-controlled bank
account.
McDaniel used the funds to pay off
$23 million in credit card bills
and transferred another $8 million
to his personal bank accounts,
according to the indictment.
Investigators said they
believe he spent additionally
millions of dollars on
miscellaneous expenses.
McDaniel was arrested in Costa
Rica in 2017 pursuant to a
provisional arrest warrant filed
by the United States. He was held
in custody during extradition
proceedings.
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A.M. Costa
Rica wire services photo
The suspect
who resided in the City of
Orange before fleeing to
Costa Rica in early 2017,
arrived Thursday at Los
Angeles after extradition
proceedings in Costa Rica.
An
indictment contains
allegations that a
defendant has
committed a crime.
Every defendant is
presumed innocent
until and unless
proven guilty beyond a
reasonable doubt.
Each of the 10 counts
of wire fraud charges
in the indictment
carries a statutory
maximum penalty of 20
years in federal
prison.
This case was
investigated by the
Federal Bureau of
Investigation. The U.
S. Attorney’s Office
extended its
appreciation to the
Costa Rican
authorities who
assisted in
apprehending the
defendant, and the
Department of Justice
Office of
International Affairs
for assisting with the
extradition as well as
the U. S. Department
of State Diplomatic
Security Service and
the United States
Marshals Service for
their assistance in
this matter.
This case is being
prosecuted by
Assistant United
States Attorney Poonam
G. Kumar of the Major
Frauds Section.
More information on
this case may be
reached at United
States Department of
Justice here*.
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reach the place on map.
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