Illinois police have arrested a business executive and his ex-escort girlfriend and accused them of running up $5.8 million on a company credit card to fund their lavish lifestyle, as reported by CBS Chicago.
The Chicago Tribune has reported that Scott Kennedy, 43, and Crystal Lundberg, 31, were indicted on six counts of wire fraud on Tuesday. Authorities say the sketchy spending began in November 2015 after Lundberg asked Kennedy for help buying Christmas gifts for her daughters.
Records indicate that Kennedy was working as a leading financial controller at Nemera, a drug-delivery device company in Buffalo Grove, when he met Lundberg through a matchmaking website in 2012. He is said to have solicited her services eight to 10 times.
Kennedy told agents that Lundberg, her children, and pets were living with him by the end of 2015. They lived and moved together until Lundberg went to San Diego in 2016, according to the Chicago Sun-Times.
The pair allegedly made several extravagant purchases on Nemera’s dime, including paying $24,000 for movers to haul Lundberg’s potted plants from Illinois to her mansion in San Diego. There, she allegedly used $585,000 in company funds to open a spa. Nemera also unknowingly paid $12,000 a month for the 6,500-square-foot property, a court filing has detailed.
Kennedy claims that Lundberg said she was adopted by a rich family as a child and would have access to a $4 million trust fund when she turned 30. He said he believed he would be compensated with money from the trust fund, which he would use to reimburse the company.
Federal agents allege that Lundberg filed for bankruptcy in 2009 and didn’t disclose the existence of a trust fund. While agents accused Lundberg of making most of the purchases, Kennedy also confessed to making some personal charges.
A 12-page indictment obtained by the Chicago Sun-Times reveal that Kennedy allegedly falsified company accounting records to make the charges appear to be business-related.
Lundberg’s attorney, Marc Carlos, blames Kennedy for the alleged fraud.
“He knew what she was. He knew what her past was. Then he’s the one who wanted to get in her good graces by giving her gifts,” Carlos said. “He’s the one who has… the means, the method, the opportunity and the motive to commit a crime. She doesn’t.”
Nemera said they fired Kennedy in March, following a review of his “improper financial activity.”
“The review showed that Mr. Kennedy abused his authority to unilaterally set up a process that circumvented controls that were in place and victimized the company. Based on recommendations from our independent accounting firm and outside counsel, we have taken steps to protect against a situation like this in the future,” the company said in a statement.
If convicted, Lundberg and Kennedy will forfeit $5,794,715 and one Rolex “Everose Gold” watch. They also face 20 years for each of the six counts of fraud.
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