Cheshire Woman Embezzled Nearly $1M From Employer: Feds

CHESHIRE, CT — A Cheshire woman has pleaded guilty to federal charges in connection with a nearly $1 million embezzlement scheme, according to officials.

Erin Sullivan, 53, waived her right to be indicted and pleaded guilty Monday in New Haven federal court to fraud and tax offenses stemming from an embezzlement scheme, U.S. Attorney for Connecticut Vanessa Roberts Avery announced.

Sullivan worked as the office manager for a family-owned construction business, identified in court documents in “Company A,” based in Orange, according to officials.

“Beginning at least as early as 2016, Sullivan made false entries into Company A’s payroll and accounting system that caused the system to generate hundreds of fraudulent checks payable to her or to ‘Petty Cash,’” officials wrote in a news release. “Almost immediately after she generated a fraudulent check, Sullivan changed the reference in the payroll and accounting system to show that it had been issued to a different payee.

“Sullivan sometimes generated checks in the name of Company A’s owner, forged the signature of Company A’s owner on the checks, and either cashed the checks or deposited them into her bank account. She also altered the payroll and accounting system in other ways, which resulted in her receiving additional pay to which she was not entitled. Through this scheme, Sullivan embezzled $955,960.71 from Company A.”

Authorities said Sullivan also failed to pay $233,738 in federal income taxes on her embezzled income for the 2016 through 2021 tax years.

Sullivan pleaded guilty to one count of wire fraud, which carries a maximum term of 20 years in prison, and one count of tax evasion, which carries a maximum term of imprisonment of five years.

Sullivan was released on a $100,000 bond pending sentencing, which has not been scheduled.