[US] Former tech exec charged with embezzling $2.7m from employer

In the US, a former San Francisco tech executive has been charged with embezzling around $2.7 million from his employer after an indictment alleged that he inflated his paycheques and hid proceeds from the IRS for more than eight years, Insider reports.

Aubrey Jackson Shelton II was arrested and charged with tax evasion, bank fraud, and wire fraud, according to an August 25 press release from the US Attorney's Office in the Northern District of California. 

The press release states that an indictment alleges that the former San Francisco executive used his "exclusive control" of RepairPal's payroll software to "inflate his salary and bonuses," paying himself significant sums of money between 2013 and 2021.

The release adds that Mr Shelton used the software to categorise the payments as "Executive Loan," "Misc Reimbursement," and "Mileage Reimbursement."

In addition, Mr Shelton is reportedly alleged to have falsified information given to the payroll processor, given false payroll approval to the CEO of the company and sent false tax returns to the IRS that did not disclose the money he is accused of embezzling.

He is scheduled to appear at San Francisco federal district court in October. If found guilty, he could receive a prison sentence of up to 30 years for bank fraud and be fined up to $1 million for each violation.

Mr Shelton could face additional prison time of up to 20 years for wire fraud and a potential further five years for tax evasion, according to the press release. 

In 2022, another California tech executive got sentenced to 11 years in prison after being convicted of four counts of defrauding investors.

Elizabeth Holmes made false claims to investors about the effectiveness of the technology at her blood-testing company, Theranos. Her prison term was reduced by two years in July.

In a statement, RepairPal told Insider, "Shelton acted alone and no other company employees were involved. RepairPal has no criminal liability in this matter and Shelton's actions have had no material impact on our partners, customers or day-to-day operation of our business. We have cooperated fully with authorities and will continue to do so."

Source: Insider

(Links and quotes via original reporting)

In the US, a former San Francisco tech executive has been charged with embezzling around $2.7 million from his employer after an indictment alleged that he inflated his paycheques and hid proceeds from the IRS for more than eight years, Insider reports.

Aubrey Jackson Shelton II was arrested and charged with tax evasion, bank fraud, and wire fraud, according to an August 25 press release from the US Attorney's Office in the Northern District of California. 

The press release states that an indictment alleges that the former San Francisco executive used his "exclusive control" of RepairPal's payroll software to "inflate his salary and bonuses," paying himself significant sums of money between 2013 and 2021.

The release adds that Mr Shelton used the software to categorise the payments as "Executive Loan," "Misc Reimbursement," and "Mileage Reimbursement."

In addition, Mr Shelton is reportedly alleged to have falsified information given to the payroll processor, given false payroll approval to the CEO of the company and sent false tax returns to the IRS that did not disclose the money he is accused of embezzling.

He is scheduled to appear at San Francisco federal district court in October. If found guilty, he could receive a prison sentence of up to 30 years for bank fraud and be fined up to $1 million for each violation.

Mr Shelton could face additional prison time of up to 20 years for wire fraud and a potential further five years for tax evasion, according to the press release. 

In 2022, another California tech executive got sentenced to 11 years in prison after being convicted of four counts of defrauding investors.

Elizabeth Holmes made false claims to investors about the effectiveness of the technology at her blood-testing company, Theranos. Her prison term was reduced by two years in July.

In a statement, RepairPal told Insider, "Shelton acted alone and no other company employees were involved. RepairPal has no criminal liability in this matter and Shelton's actions have had no material impact on our partners, customers or day-to-day operation of our business. We have cooperated fully with authorities and will continue to do so."

Source: Insider

(Links and quotes via original reporting)