Austin Attorney Accused Of Embezzling From Former Employer

AUSTIN, TX — An Austin attorney was arraigned this week on a criminal complaint alleging wire fraud tied to a scheme to embezzle fund from her former employer, prosecutors said.

In a notice issued Thursday, the U.S. Attorney's Office for the Northern District of California said Brooke Campbell Solis appeared in U.S. Magistrate Court for arraignment and an initial federal court appearance on the criminal complaint. She appeared before U.S. Magistrate Judge Virginia K. DeMarchi.

According to the complaint, Solis, 49, of Austin, is a licensed attorney. From January 2018 until July 2019, she was general counsel and then chief business officer of a financial technology company registered to do business in the State of California. While employed with the technology company, prosecutors noted, Solis telecommuted from her home in Austin to her employer’s principal place of business in San Francisco.

The complaint alleges how Solis diverted funds from her employer and paid the diverted funds to shell companies and entities controlled by Solis and her husband. For example, Solis controlled a shell company named The Paralegal Group LLC incorporated in Delaware that listed Solis as the sole member, according to prosecutors. Bank records and additional vendor records identify Solis as the person controlling The Paralegal Group, prosecutors said.

The complaint alleges Solis submitted fraudulent invoices in the name of The Paralegal Group before arranging for her employer to pay the invoices to the shell company. According to the complaint, there is no evidence The Paralegal Group ever provided any services to Solis’s employer and certain records typically associated with running a true business do not exist for The Paralegal Group.

Prosecutors outlined another aspect of the embezzlement scheme: Solis is accused of using “super administrative privileges” to receive an illegitimate reimbursement payment from her employer. The super administrative privileges had been granted by her employer to assist Solis to exercise her legitimate job responsibilities, according to prosecutors. Nevertheless, Solis used the privileges to improperly submit and approve payment for expenses without review from other employees or executives working for the employer, officials added.

California prosecutors offered an example of the scheme: In July of 2019, two days after Solis’s employment was terminated, she is accused of submitting a personal expense of $4,575 for “Jackson and Oliver boarding.” In this example, Solis is accused of self-approving expenses for 61 days of dog boarding. The criminal complaint explains that Solis used her access to her employer’s expense approval software even after her employment was terminated and, as of the signing of the complaint, no records for the boarding company could be found.

Solis is charged with two counts of wire fraud, in violation of 18 U.S.C. § 1343, of which she pleaded not guilty, according to prosecutors. Magistrate Judge DeMarchi ordered Solis released on a $150,000 bond and scheduled her next court appearance for Oct. 22 at 10:30 a.m. for a preliminary examination.

A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt, prosecutors noted. If convicted, Solis faces a maximum statutory penalty of twenty years in prison for each count of wire fraud. The court also may order an additional term of supervised release, fines and restitution.