An Alden woman was sentenced Friday to one to three years in prison for embezzling from her employer, Norampac Industries Inc.
The money Lynn Montgomery misappropriated and the company’s related costs totaled $386,927.
Her scheme unraveled when a local bank alerted the Erie County Sheriff’s Office about suspicious deposits being made into her account.
Montgomery, who had been the human resources director and payroll clerk of the Lancaster Division, issued payroll checks to employees who either were out on disability or had recently been terminated, and forging those employees signatures on the checks and depositing them in her personal bank account.
A bank employee recognized the name of one of the other employees but discovered the signature on the check did not match.
The sheriff’s investigation found she had been generating fraudulent payroll checks from Norampac while working at the Norampac Walden Avenue office since early 2005.
“It wasn’t like you made one mistake and grabbed $200,000,” State Supreme Court Justice M. William Boller told Montgomery during the court hearing.
A pre-sentence report on Montgomery, 47, of Sullivan Road, revealed that she issued the illegal checks monthly at first, but then did so weekly when she found how easy it was to get the money, Boller said. The report also said Montgomery rationalized her actions because she gave some of the ill-gotten money to others whom she felt needed it more than the company, Boller said.
“It’s easy to be generous when using other people’s money,” the judge told her.
Montgomery had faced a maximum prison sentence of 19 years. She pleaded guilty in April to second-degree grand larceny and first-degree offering a false instrument for filing, according to prosecutors Candace K. Vogel and Gary M. Ertel of the Erie County District Attorney’s Office.
The false instrument count stems from filing a false state tax return. She owes $17,258 to the state for the unreported money she received.
“I’m sorry to Norampac,” Montgomery tearfully told the judge. “I’m sorry to my family. I’m sorry to the employees of Norampac. I’m sorry to the court.”
Montgomery said she has undergone “significant therapy” to understand why she stole the money.
“I recognize my actions violated the company’s trust in me,” she said.
Since her arrest, Montgomery said she has worked 40 to 60 hours a week at three local companies to make money for her restitution. The companies withdrew full-time job offers when background checks revealed her arrest.
She said she has worked from 3:30 a.m. to 3:30 p.m. at a local beverage company, which allowed her to be home when her 12-year-old daughter returned from school.
“It breaks my heart to think of my daughter,” she said, in addition to “two sons I let down.”
Her crime has embarrassed her family, she said. Now, her imprisonment will disrupt her family.
Montgomery brought a $100,000 check to her sentencing as a first payment toward her restitution.
“She was able to come up with $100,000 over eight months,” said Elizabeth A. Holmes, her defense attorney.
“It’s better than nothing,“ Boller said of the check.
An attempt to cash in her husband’s 401(k) account under a hardship provision was denied, she said.
When the judge asked why she did not sell her family’s two race cars and camper, she said they’re old and not worth anything.
“I have nothing,” she said, when asked why she did not come up with more restitution.
Holmes asked the judge to sentence Montgomery to probation.
“Lynn has earned a chance to satisfy her restitution,” Holmes said.
The money Montgomery turned over to the company “certainly reduced” her prison term, Boller said.
But he said embezzling cases have become an epidemic.
Boller said he believes in full restitution. But he asked what kind of message does the public get if offenders avoid prison because they’re able to make full or just partial restitution.
email: plakamp@buffnews.com
The money Lynn Montgomery misappropriated and the company’s related costs totaled $386,927.
Her scheme unraveled when a local bank alerted the Erie County Sheriff’s Office about suspicious deposits being made into her account.
Montgomery, who had been the human resources director and payroll clerk of the Lancaster Division, issued payroll checks to employees who either were out on disability or had recently been terminated, and forging those employees signatures on the checks and depositing them in her personal bank account.
A bank employee recognized the name of one of the other employees but discovered the signature on the check did not match.
The sheriff’s investigation found she had been generating fraudulent payroll checks from Norampac while working at the Norampac Walden Avenue office since early 2005.
“It wasn’t like you made one mistake and grabbed $200,000,” State Supreme Court Justice M. William Boller told Montgomery during the court hearing.
A pre-sentence report on Montgomery, 47, of Sullivan Road, revealed that she issued the illegal checks monthly at first, but then did so weekly when she found how easy it was to get the money, Boller said. The report also said Montgomery rationalized her actions because she gave some of the ill-gotten money to others whom she felt needed it more than the company, Boller said.
“It’s easy to be generous when using other people’s money,” the judge told her.
Montgomery had faced a maximum prison sentence of 19 years. She pleaded guilty in April to second-degree grand larceny and first-degree offering a false instrument for filing, according to prosecutors Candace K. Vogel and Gary M. Ertel of the Erie County District Attorney’s Office.
The false instrument count stems from filing a false state tax return. She owes $17,258 to the state for the unreported money she received.
“I’m sorry to Norampac,” Montgomery tearfully told the judge. “I’m sorry to my family. I’m sorry to the employees of Norampac. I’m sorry to the court.”
Montgomery said she has undergone “significant therapy” to understand why she stole the money.
“I recognize my actions violated the company’s trust in me,” she said.
Since her arrest, Montgomery said she has worked 40 to 60 hours a week at three local companies to make money for her restitution. The companies withdrew full-time job offers when background checks revealed her arrest.
She said she has worked from 3:30 a.m. to 3:30 p.m. at a local beverage company, which allowed her to be home when her 12-year-old daughter returned from school.
“It breaks my heart to think of my daughter,” she said, in addition to “two sons I let down.”
Her crime has embarrassed her family, she said. Now, her imprisonment will disrupt her family.
Montgomery brought a $100,000 check to her sentencing as a first payment toward her restitution.
“She was able to come up with $100,000 over eight months,” said Elizabeth A. Holmes, her defense attorney.
“It’s better than nothing,“ Boller said of the check.
An attempt to cash in her husband’s 401(k) account under a hardship provision was denied, she said.
When the judge asked why she did not sell her family’s two race cars and camper, she said they’re old and not worth anything.
“I have nothing,” she said, when asked why she did not come up with more restitution.
Holmes asked the judge to sentence Montgomery to probation.
“Lynn has earned a chance to satisfy her restitution,” Holmes said.
The money Montgomery turned over to the company “certainly reduced” her prison term, Boller said.
But he said embezzling cases have become an epidemic.
Boller said he believes in full restitution. But he asked what kind of message does the public get if offenders avoid prison because they’re able to make full or just partial restitution.
email: plakamp@buffnews.com