Public Safety

Cedar Rapids woman sentenced to probation for embezzling funds from Marshalltown company

Marcy German also faces civil suit in theft

Marcy German
Marcy German

MARSHALLTOWN — A Cedar Rapids woman, who embezzled more than $10,000 over 10 years from a manufacturing company, has been sentenced to five years probation.  

Marcy A. German, 47, former office manager at Spread-All Manufacturing in Marshalltown, pleaded guilty in Marshall County District Court in June to first-degree theft and tampering with records. Another charge of ongoing criminal conduct was dismissed as part of a plea agreement.

The criminal complaint shows German used three company credit cards to make personal purchases in excess of $10,000 between 2006 and December 2016.

German, who handled payroll, payables and human resources for the company, also paid herself with funds earmarked for a Health Savings Account, according to the complaint.

Second Judicial District Judge Steven Oeth ran the 10- and two-year penalties on both charges concurrent, but then suspended that and sentenced German to five years probation.

Oeth took into consideration that German did not have a criminal history.

He also ordered German to pay $1,625 in fines and any restitution to be determined later. That must be paid within six months of any resolution in a pending civil case against German by Spread-All Manufacturing.   

Brian Maddick, president of Spread-All Manufacturing, told The Gazette Wednesday he thinks German should have received prison time.

Maddick, in his victim’s impact statement Tuesday, said he looks for honesty and trustworthiness when he hires an employee. He trusted German was doing her job and what was best for the company.

“As she always said, she ‘treated the business like it was her own.’ The problem is, it was not her company,” Maddick said.

Maddick said he was initially shocked that German was stealing from the company because he had been best friends with her husband since seventh grade. Their family was “family to us,” he said, adding he thought he could trust her but she took advantage of his friendship.

There were 1,581 unauthorized charges on credit cards that German made for her personal benefit to a variety of retail stores, Maddick told the court in his statement. German put company bills for freight and concrete on a credit card, which should have been paid by checks, to cover up her personal expenditures on the credit cards.

Maddick pointed out in the statement that German first said it was a misunderstanding and offered to repay $50,000. In December 2016, she admitted she owed the company $91,000. Maddick said they refused to accept her numbers because she owes much more to the company.

“Now, if we can get the restitution back, we will be able to put this to rest,” Maddick said Wednesday. 

Any restitution for the theft will come from damages awarded in a civil lawsuit filed by Spread-All Manufacturing against German and her husband, Timothy German, director, president and CEO of F&M Bank in Cedar Rapids, court documents show.

Timothy German was not charged in the criminal case.

Maddick previously said Timothy German was the company’s banker, but the relationship was severed in February following his wife’s arrest in December.

The civil lawsuit was filed in May by French Grove Enterprises Inc., doing business as Spread-All Manufacturing Co., in Linn County District Court.

It claims Marcy German is liable for money she embezzled and money associated with the “goods taken,” along with any and all costs to prosecution, accounting and attorney fees.

The suit claims Timothy German also is liable because he benefited from his wife’s theft and “participated in the transfer of funds without the permission of the principals of French Grove/Spread-All.”

The company is asking for compensatory and punitive damages in an amount to be determined by a jury.

Previous court documents filed show the Germans, through their Cedar Rapids lawyer, Gail Brashers-Krug, denied liability and owing damages to the company.

A Linn County trial date for the civil suit is set for March 19.

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