FBI: Pawtucket Woman Embezzled $580K From Cranston Auto Body Shop

PROVIDENCE, RI — A Pawtucket woman was arrested by FBI agents today and accused of embezzling $580,000 from a Cranston auto body repair shop where she used to work as a secretary.

Idalee Johnston, 47, was quickly arraigned in U.S. District Court in Providence on charges that she stole money from Ideal Auto Body. According to an indictment, Johston misdirected the proceeds of around 190 checks made out to customers from insurance companies.

Federal prosecutors say that for two years starting in 2016, Johnston either failed to have customers sign direct payment forms — meaning insurance payments were made directly to the auto body shop — or didn’t forward the signed payment forms to insurance companies. As a result, insurance checks were not sent directly to customers.

Johnson allegedly deposited some of the checks into her own bank account after forging signatures. In other cases, Johnston instructed family members to deposit the stolen checks into their own accounts, withdraw the funds, and provide the money to her. In return, Johnston provided family members with kickback payments, prosecutors allege.

Johnston was arrested today by FBI agents and made to appear before U.S. District Court Magistrate Judge Patricia A. Sullivan. She was charged with mail fraud and aggravated identity theft. Johnston was released on personal recognizance and was ordered to be back in court at a later date.

Acting U.S. Attorney Richard B. Myrus and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta announced the arrest today. The case is being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Terrence P. Donnelly.