A Laguna Niguel resident, 43-year-old Paul Joseph Welch, has admitted guilt in U.S. District Court in Seattle for wire fraud that involved embezzling nearly $1 million from his workplace. This development was announced by Acting U.S. Attorney Teal Luthy Miller. Welch, who was the IT manager for energy manufacturing company Algas-SDI in Kent, Washington, is set for sentencing in August.
Welch's tenure at Algas-SDI spanned from 2011 until his dismissal in 2024, with a promotion to Information Technology Manager occurring in 2018. His unauthorized activities reportedly began in 2017, involving using the company's Amazon business account for personal expenses totaling at least $43,000.
Documents disclose that by 2019, Welch began leveraging his company credit card for private purchases from various online vendors, contributing an additional $60,000 to the unauthorized spending. His fraudulent activities escalated in 2021, when Welch orchestrated a scheme involving payments to fictitious computer services, siphoning about $879,175 through Algas-SDI's credit cards into accounts he managed.
Efforts by Algas-SDI to scrutinize these transactions were met with Welch's deceptive responses, including fabricated invoices to camouflage his schemes. Despite being confronted about these irregularities and false vendor payments, Welch allegedly maintained deceitful assertions about the vendor's authenticity until his employment was terminated in January 2024.
Assistant United States Attorney Dane A. Westermeyer is heading the prosecution while the FBI conducted the investigation. Welch has agreed to repay the embezzled funds. The potential penalties for wire fraud include up to 20 years' imprisonment and a $250,000 fine. However, the prosecution plans to recommend a sentence not exceeding 27 months, contingent on the judge's discretion.
