Dive Brief:
- The former CFO of a Pennsylvania company owned by a Chicago-area entity was convicted of eight counts of wire fraud after embezzling more than $1 million from the entity to purchase luxury items, according to a Monday press release from the U.S. Attorney's Office for the Northern District of Illinois.
- During Tina Feuerstein’s tenure as finance chief, she used a company credit card over a period of five years to purchase items for personal use including luxury furniture and designer apparel, as well as everyday expenses.
- A federal jury found Feuerstein guilty on all eight counts on April 9 after a four day trial in a Chicago U.S. District Court. Each count of wire fraud carries a maximum sentence of 20 years in federal prison, according to the Monday announcement. U.S. District Judge LaShonda A. Hunt set Feuerstein’s sentencing date for Aug. 26.
Dive Insight:
Feuerstein, 53, served both in the accounting department and as CFO for York Wallcoverings, according to a previously redacted indictment filed in the U.S. District Court for the Northern District of Illinois.
York Wallcoverings is a subsidiary of York Design Group, a home décor and furnishing company created by a merger between the wall covering company and Brewster Home Fashions in 2021 after both were purchased by private equity group Industrial Opportunity Partners, according to a page on the company’s website.
From a period beginning around November 2016 through around February 2023, Feuerstein during her tenure as finance chief at York Wallcoverings — also referred to as “Company A” in court documents — misappropriated approximately $1.09 million in company funds through more than 3,800 fraudulent purchases made through an American Express company card, according to the indictment.
Those purchases included groceries, utility bills and trips, as well as luxury furniture, handbags and other expenses for herself, her husband and her children, according to the indictment. Additionally, Feuerstein utilized her access to the company’s accounting system to hide those expenses so they were not readily apparent to other Company A or “Company B” (Industrial Opportunity Partners) personnel.
For example, one count of wire fraud includes an $8,303 charge on the company’s American Express card to furniture maker Raymour & Flanigan on Dec. 11, 2022. Other counts include a $1,289.06 charge at Coach, as well as charges to luxury brand Michael Kors and motorcycle maker Harley Davidson.
She also made false statements on Company A’s accounting systems to disguise those purchases, and “misrepresented and omitted material facts to management and ownership of Company A and Company B concerning her spending on her Company A American Express credit card,” according to the indictment.
Evidence during the four-day trial also revealed Feuerstein had previously embezzled more than $250,000 while working in the accounting department of another company. Evidence during trial confirmed Feuerstein’s prior employer to be the Philips Corporation, the U.S. Attorney’s Office said in an email. The office declined to comment on the verdict.
John Somerville, attorney for Feuerstein, did not immediately respond to requests for comment on the verdict.
York Wallcoverings does not comment on “individual employment matters or ongoing or concluded legal proceedings,” a company spokesperson told CFO Dive in an email.
