Legal Issues

CPA Charged With Tax Fraud, Embezzling Over $1 Million

CPA Charged With Tax Fraud, Embezzling Over $1 Million

An Ohio CPA has been charged with tax fraud as the result of a scheme that saw him embezzle over $1 million from his employer.

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The Department of Justice shared an official press release about the case from the U.S. Attorney's Office for the Northern District of Ohio. 

Michael Herman, 45, held his Certified Public Accountant (CPA) license and was employed as a controller within his organization. He embezzled funds from the unnamed company between 2016 and 2020.

According to the press release, Herman used the funds for moving expenses, child support payments in the State of New York, and various other purchases. He also failed to report the income earned from his scam on his tax documents in 2016, 2017, 2018, and 2019.

Herman is facing six counts, including money laundering and submitting false tax returns to the IRS.

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Credit: Dowell/Getty Images

Youngstown news station WKBN 27 noted that the former CPA is "accused of executing the scheme by using a series of unauthorized wire transfers, fictitious checks, and fraudulent charges on his employer’s credit cards."

It seems that Herman used his role, which included payroll adjustments, to perpetrate the embezzlement plot.

The case was jointly investigated by Cleveland FBI, Akron Resident Agency and the IRS Criminal Investigation division. At this time, it is not known if Herman and his legal team will opt for a jury trial or if he will accept a plea deal. 

What do you think about Northern Ohio embezzlement case?

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Rebekah Barton

Rebekah Barton

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