Dubuque woman pleads guilty to embezzlement case

CEDAR RAPIDS - A Dubuque woman pleaded guilty Tuesday in federal court to embezzling more than $70,000 from her employer's business over an eight-year period.

Jennifer Shively, 35, pleaded guilty to one count of mail fraud in U.S. District Court. She faces up to 20 years in federal prison, a $250,000 fine or twice the gross gain or loss of the fraud, whichever is greater, and more than $65,000 in victim restitution.

Shively, as a bookkeeper for her employer, 'M.L.,” admitted during the hearing that she wrote unauthorized checks on his or the business' accounts for cash, opened a Citibank credit card in M.L.'s name for her personal use and then used his money to pay for items charged to the card from August 2012 to March 2014. Court documents don't state the full name of her former Dubuque employer or the business.

The plea agreement shows Shively racked up a credit card debt of about $31,102 and made payments to the card from M.L.'s account for $10,224. The payments were directly traceable to her employer's accounts. Citibank also charged the account $4,259 in interest and $696 in fees during this time. The total amount still owed on the account is at least $18,376, court records show. 

Shively stole about $70,137 during the fraud, including $9,403 in checks issued to her or for cash, $29,632 in unauthorized payments to her personal creditors and the credit card charges, the plea shows.

The plea includes one payment of $542 taken from M.L.'s account that Shively mailed to Citibank on the unauthorized credit card account in October 2012.

Shively, as the bookkeeper, didn't have 'strict” supervision and was given 'significant discretion and authority” over her employer's checking, savings and credit accounts, according to the plea. M.L. didn't monitor his accounts or supervise her work, court records state.

Shively, as part of the plea agreement, will pay $52,036 in victim restitution to M.L. and $13,421 to Citibank.

Prosecutors also have filed a forfeiture against any property derived from the proceeds of the fraud. There are no further details in the court documents.  

U.S. Chief Magistrate C.J. Williams released Shively with special conditions pending sentencing. The conditions state Shively cannot take a job in a fiduciary position and must submit to a mental health evaluation and any treatment. Williams added that Shively, at one point, was gambling, in an attempt to win money to pay off her debt, so he added she cannot gamble or play the lottery while under this release. 

A sentencing date has not yet been set.

l Comments: (319) 398-8318; trish.mehaffey@thegazette.com