The former Controller of a Shelton, Washington outdoor equipment company has been sentenced to 12 months and one day in prison, along with three years of supervised release. Jesse Arden Sherman, aged 63 from Elma, Washington, was found guilty of embezzling over $665,000 from the company he worked for between 2012 and 2018. This announcement was made by Acting U.S. Attorney Teal Luthy Miller.
Sherman illegally diverted funds from Sims Vibration Laboratory Inc., where he began working in 2008. As controller, Sherman had full access to the company's accounting systems and banking functions. Starting in 2012, he abused this trust by employing various schemes to steal money. These included making false representations to the company's owner and president, creating false business records, and depositing payroll checks into his personal accounts under false pretenses.
U.S. District Judge Tiffany M. Cartwright emphasized both the economic and non-economic losses suffered by the victim company and its employees during Sherman's sentencing hearing.
Sherman's fraudulent activities led to a financial loss of at least $665,840 for the company. Additionally, as a Certified Public Accountant aware of his tax obligations on illicit gains, Sherman failed to pay $202,196 owed in taxes between 2013 and 2018.
Prosecutors requested an 18-month sentence due to Sherman's repeated betrayal of his employer's trust through ongoing fraudulent actions. They stated: “Despite personal and professional privileges, Sherman elected to create a multi-faceted fraud scheme... Although he claims his gambling drove his behaviors...he instead re-committed to his scheme over and over again.”
Sherman has agreed to restitution payments amounting to $665,840 for the company and $202,196 for unpaid taxes.
The investigation involved the Internal Revenue Service Criminal Investigation (IRS-CI), FBI, and Mason County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Brian Wynne.
