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State jails former accountant for embezzlement
By Julia Silverman, Associated Press Writer
Tuesday, July 01, 2008 | No comments posted.
PORTLAND — A former accountant at the Oregon Department of Education who embezzled nearly $1 million worth of federal money will serve two years in prison.
U.S. District Judge Garr King on Monday ordered Brent Crosson to report to prison on August 14. Crosson has requested to be allowed to serve his term at the Federal Correctional Institution in Sheridan, near his parents’ home in Salem.
He will also have to repay the $925,000 he took from the department, $750,000 of which has already been reclaimed. King waived any interest payments, citing Crosson’s “limited financial resources.”
After his prison term is complete, Crosson will be under supervision for three years, and unable to sell or transfer any assets above $500 without getting approval from his probation officer.
The sentencing came after Crosson agreed to plead guilty, admitting that between June 2006 and June 2007, he diverted $925,000 to CGA Wholesale, an online guns and ammunition dealer that he controlled. The money was part of federal grants for charter schools, school-based health clinics and anti-drug youth initiatives.
With his guilty plea, Crosson waived his right to an appeal.
After the hearing, Crosson refused to comment. But under questioning, he did tell Judge King that he had intended to put the money back into state coffers, and that he just hadn’t figured out how to do so.
The maximum penalty for the charge Crosson faced is 10 years in prison and a fine of $250,000.
No other employees from the department appear to have been involved in the Crosson case, according to Lance Caldwell, with the U.S. Attorney’s Office. Education department officials have said Crosson may have forged documents to transfer the funds without raising red flags.
The Department of Administrative Services has launched an audit of the Education Department’s accounting practices. Officials at the department say they have already begun making changes, including hiring of a new accounting director, deeper background checks for finance employees and expanded ethics training for staff members.
U.S. District Judge Garr King on Monday ordered Brent Crosson to report to prison on August 14. Crosson has requested to be allowed to serve his term at the Federal Correctional Institution in Sheridan, near his parents’ home in Salem.
He will also have to repay the $925,000 he took from the department, $750,000 of which has already been reclaimed. King waived any interest payments, citing Crosson’s “limited financial resources.”
After his prison term is complete, Crosson will be under supervision for three years, and unable to sell or transfer any assets above $500 without getting approval from his probation officer.
The sentencing came after Crosson agreed to plead guilty, admitting that between June 2006 and June 2007, he diverted $925,000 to CGA Wholesale, an online guns and ammunition dealer that he controlled. The money was part of federal grants for charter schools, school-based health clinics and anti-drug youth initiatives.
With his guilty plea, Crosson waived his right to an appeal.
After the hearing, Crosson refused to comment. But under questioning, he did tell Judge King that he had intended to put the money back into state coffers, and that he just hadn’t figured out how to do so.
The maximum penalty for the charge Crosson faced is 10 years in prison and a fine of $250,000.
No other employees from the department appear to have been involved in the Crosson case, according to Lance Caldwell, with the U.S. Attorney’s Office. Education department officials have said Crosson may have forged documents to transfer the funds without raising red flags.
The Department of Administrative Services has launched an audit of the Education Department’s accounting practices. Officials at the department say they have already begun making changes, including hiring of a new accounting director, deeper background checks for finance employees and expanded ethics training for staff members.
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