A 43-year-old man from Laguna Niguel, California, has been indicted by a Seattle grand jury on six counts of wire fraud. The indictment alleges that Paul Joseph Welch, an IT manager, orchestrated a scheme to embezzle nearly $1 million from Algas-SDI, a Kent, Washington-based energy manufacturing company. Acting U.S. Attorney Teal Luthy Miller announced the indictment. Welch is scheduled to be arraigned on April 17, 2025.
Welch, who joined the company in 2011 and was promoted to Information Technology Manager in 2018, allegedly began misappropriating funds in 2017. According to the indictment, he used the company’s Amazon business account to make personal purchases totaling at least $43,000 between 2017 and 2023. The items bought included televisions and laptops. Additionally, Welch allegedly used his company credit card for unauthorized purchases amounting to at least $60,000 between 2019 and 2024.
In January 2021, the fraudulent activities reportedly intensified. Welch is accused of making payments to himself by impersonating a computer services company. He allegedly created email addresses and payment processor accounts resembling a legitimate company, enabling him to divert approximately $879,175 into accounts he controlled.
Each attempt by Algas-SDI to verify Welch's activities was allegedly met with false or misleading responses. He reportedly presented counterfeit invoices to disguise his charges. Notably, in 2023, an Algas-SDI employee identified unauthorized charges, leading Welch to promise reimbursement, which he never fulfilled. His fraudulent activities reportedly persisted, culminating in January 2024 with fake invoices claiming over $55,000 for unprovided services.
On January 19, 2024, Algas-SDI confronted Welch regarding the charges, leading to his immediate termination following his insistence that the vendor was legitimate.
The charges against Welch involve six instances in which he allegedly sent fraudulent statements or invoices via email. During the period from 2017 to January 2024, Welch is accused of making at least 250 fraudulent charges to the vendor he controlled, 140 unauthorized credit card purchases, and 100 fraudulent charges on the company’s Amazon account. The company suffered a loss of approximately $982,520.
Wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The indictment represents allegations that must be proven in court. The investigation is being conducted by the FBI with prosecution led by Assistant United States Attorney Dane A. Westermeyer.
