Former Leasing Exec Sentenced to 5 Years for Embezzlement
John "Jack" Manning, the former president of American Leasing Corp., who pleaded guilty last July to embezzling approximately $6.2 million from the company, has been sentenced to five years in prison, according to the Monitor.
Manning pleaded guilty July 14, 2009 in federal court in Camden to one count of wire fraud. Manning admitted that, beginning in 2004, he embezzled $6.2 million from his employer of 25 years by arranging fake sale/leaseback deals between his company and a company identified in court documents only as "Utility B." Manning set up fake subsidiaries of Utility B, and created phony documents and bank accounts in furtherance of the fraud.
Manning's employer is unidentified in court documents and is referred to only as "Company A." But a search of New Jersey campaign finance documents shows that during the time frame in question Manning was president of American Leasing.
According to court records, between July 2004 and February 2009, $8.2 million was transferred between American Leasing Corp. and the fake subsidiaries set up by Manning. The defendant went to lengths to conceal the fraudulent transactions. He spent the proceeds of the scheme on beach-front real estate and other personal expenditure and to buy and renovate a restaurant.
Parole has been abolished in the federal system, so Manning will be required to serve nearly all of his five years.
U.S. District Judge Joseph H. Rodriguez also ordered Manning to pay $6,282,426 in restitution and to serve three years of supervised release upon the completion of his prison term. Judge Rodriguez continued the defendant's release on a $100,000 bond pending his surrender to officials with the U.S. Bureau of Prisons on a date to be determined by prison authorities.
Click here to access the complaint against Manning.