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Ex-accounting manager charged with embezzling
$36 million extradited from Costa Rica


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.


Extradition021819.jpg
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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Have you ever heard about an expat in the country's jail waiting for extradition? We would like to know your thoughts on this story. Send your comments to: news@amcostarica.com

*Link to reach the place on map.


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