Waukesha Man Guilty in Embezzlement of $800,000 From Sussex Company

John F. Losee, 61, of Waukesha, stole funds through fraudulent purchase orders while he was the general manager at Heim Manufacturing.

A 61-year-old Waukesha man has pleaded guilty in federal to embezzling more than $800,000 from a Sussex business, according to a news release from the United States Attorney’s Office.

John F. Losee pleaded guilty Friday to wire fraud and filing a false federal income tax return, the release states. In the plea agreement, Losee admitted to stealing the money from between April 2003 and May 2009 while he was the general manager of the company.

According to the release:

Using his position, Losee submitted fraudulent purchase orders and invoices using the name of an actual vendor to cause Heim Manufacturing to issue more than 220 checks payable to the fictitious business Losee created. Losee then diverted these checks to bank accounts under his control and used the money to pay for personal expenses.

In addition, Losee failed to report as income the funds he had embezzled from Heim Manufacturing on the tax returns he filed for the years 2003 through 2009. By failing to report this income, Losee under reported and underpaid his federal income taxes for these years by approximately $165,000.

Based on this guilty plea, Losee faces up to 23 years in prison and fines of up to $500,000. Losee has also agreed to make full restitution to Modern Forge Companies, LLC., which is the parent company of Heim Manufacturing.

Losee’s sentencing is scheduled for Oct. 26.

This matter was investigated by agents from the Internal Revenue Service-Criminal Investigation, with the assistance of investigators from the Wisconsin Division of Criminal Investigation and the Milwaukee Police Department. The case is assigned to Assistant United States Attorney Matthew L. Jacobs for prosecution.

Johnny Paycheck July 26, 2012 at 04:35 AM
Places like that deserve to go out of business... If someone can steal such large sums and it takes them 7 years to notice then management is asleep at the wheel. On a different note, is this guy not going to be asked to repay the stolen money? It should hardly be counted as unreported income for tax purposes if he didn't really earn it and has to pay it all back.
Amanda Pfeiffer July 29, 2012 at 02:45 PM
" has also agreed to make full restitution to Modern Forge Companies, LLC., which is the parent company of Heim Manufacturing." :)


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