Crime & Safety
Man Who Embezzled $503K From FL Company Sentenced To Federal Prison
A Tampa man who embezzled $503,000 from a St. Pete company spent the money gambling and on vacations, the U.S. DOJ said.
TAMPA, FL — A Tampa man was sentenced to five years in federal prison for charges related to embezzling about $503,000 from a small company in St. Petersburg, a U.S. Department of Justice news release said.
Zachary Rugen, 34, was pleaded guilty to charges of wire fraud and possessing a firearm as a convicted felon on April 8.
As part of his sentence, the court also ordered Rugen to forfeit nearly $441,000.
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He worked as the personnel director for the company between October 2020 and March 2022.
He used his access to his employer’s payment processing system to direct funds intended for vendors and contractors to his own bank accounts, the DOJ said. He also paid some of his outstanding debts with company funds.
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To cover up the fraud, Rugen electronically submitted falsified and fraudulent payment invoices.
He “used the ill-gotten funds to live lavishly, the department said. He took expensive vacations, gambled and used the money for his personal expenses.
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During the sentencing hearing, the company’s chief operating officer testified that the fraud caused substantial financial hardship that will take the company at least five years to recover.
As a result of the embezzlement, one of the company’s vendors nearly went out of business, the DOJ said.
During the investigation of Rugen’s embezzlement, law enforcement learned that he also illegally possessed two firearms. He is prohibited from possessing the firearms due to a prior felony conviction for impersonating a law enforcement officer.
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