Indy Woman Facing Federal Bank Fraud, Tax Fraud Charges
An Indianapolis woman is facing federal bank fraud and tax fraud charges after allegedly defrauding an area company out of nearly $1.5 million.
U.S. Attorney Joe Hogsett says 58-year-old Michele Spurgeon used her position at a Hamilton County business to withhold some of the checks payable to the company and deposit them into the bank account for a shell company she created. Court documents say this went on from 1996 until 2011.
Hogsett says Spurgeon would alter some of the checks to make them appear as if they were payable to her shell company. She also allegedly made adjustments to her employer's accounting records to conceal her actions. Hogsett adds Spurgeon allegedly spent the money on personal items including casino gambling, credit card payments, mortgage and home equity loan payments and cash withdrawals.
Spurgeon also failed to report the money she collected to the Internal Revenue Service. Hogsett alleges that in 2007 alone, her failure to report the money cost taxpayers over $67,000. Spurgeon faces up to 30 years in prison on the bank fraud charge and an additional five years on the tax fraud charge.