Cheshire Woman Sentenced In Nearly $1M Embezzlement Scheme: Feds

CHESHIRE, CT — A Cheshire woman has been sentenced to two years in prison for fraud and tax offenses in connection with a nearly $1 million embezzlement scheme, according to officials.

Erin Sullivan, 53, was also sentenced Wednesday in Bridgeport federal court to three years of supervised release following the prison term, 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 was ordered to pay restitution of more than $1.17 million. She has paid approximately $640,000 in restitution as of Thursday, according to officials.

Sullivan pleaded guilty in October to one count of wire fraud and one count of tax evasion.

Sullivan, who is released on a $100,000 bond, is required to report to prison on April 8, officials said.