03-18-04 -- McKenna, Matthew -- Indictment -- News Release
Information Systems Manager Indicted in Connection With Embezzling Nearly $600,000 from Employer
TRENTON - A former manager of information systems for American Credit Alliance, Inc. was indicted today for embezzling nearly $600,000 from the Trenton based not-for-profit debt consolidation company, U.S. Attorney Christopher J. Christie announced.
The Indictment charges Matthew McKenna, 26, of Newtown, Pa., with wire fraud, money laundering and tax evasion.
According to the Indictment, from 1999 to 2003, while employed as the head of company's information systems at its Trenton office, McKenna allegedly stole $598,779 from American Credit Alliance, Inc. (ACA) by directing approximately 176 unauthorized wire transfers from ACA's trust accounts into bank accounts he controlled.
ACA is in the business of personal debt consolidation. Customers of ACA pay a fee to have ACA negotiate settlements with their creditors and to arrange for credit payments to be made on their behalf. The creditors also pay ACA a fee in exchange for arranging these settlements.
It is also alleged that during the tax years 1999 through 2002, McKenna evaded approximately $162,000 in income taxes by concealing this income.
The one wire fraud count carries a statutory maximum penalty of 20 years in prison and a fine of $250,000. The five money laundering counts each carry a statutory maximum penalty of 20 years in prison and a fine of $500,000 or twice the gain to him or loss to others. The statutory maximum penalty for each of the four tax evasion counts is five years imprisonment and a fine of up to $100,000.
Under U.S. Sentencing Guidelines, the judge to whom the case is assigned would, if convicted, determine the actual sentence based upon a formula that takes into account the severity and characteristics of the offense and the defendant's criminal history, if any.
Despite Indictment, every defendant is presumed innocent, unless and until found guilty beyond a reasonable doubt, following a trial at which the defendant has all of the trial rights guaranteed by the U.S. Constitution and federal law.
Christie credited Special Agents of the Secret Service's Trenton Office, under the direction of Resident Agent-in-Charge Anthony F. Colgary, III, and the IRS Mays Landing Office, under the direction of Special Agent-in-Charge Patricia J. Haynes, with developing the case which resulted in today's Indictment.
The Government is represented by Assistant U.S. Attorney Lee D. Rudy of the U.S. Attorney's Criminal Division in Trenton.
- end -
Defense Attorney: Scott Krasny, Esq. West Trenton