Tuesday, September 11, 2012

Nonprofit CFO Sentenced In Wire Fraud Case

The former chief financial officer of a nonprofit in Knoxville, Tenn. was sentenced to 36 months in federal prison today on charges of wire fraud and money laundering.

According to a report in The San Francisco Chronicle, Cameron J. Potter was also ordered by the U.S. Attorney's Office for East Tennessee to repay the government more than $400,000. Federal investigators charged Potter with using his position as CFO of Southern Alliance for Clean Energy (SACE) to embezzle more than $403,000 in organization funds through fraudulent transactions, counterfeit checks, and diverted receipts. He used the money to pay for personal expenses, such as cars, a second house, and sports memorabilia.

Potter pleaded guilty to the charges a year ago, and was sentenced today by U.S. District Court Judge Thomas W. Phillips.

The prosecutor in the case said that Potter created fake invoices to businesses with names similar to consultants employed by SACE, and paid them with the organization's American Express account. The money was then transferred to his own accounts through an online banking service.

You can read the full story in The San Francisco Chronicle.

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