Cedar Rapids woman convicted of embezzling funds from Marshalltown company

CEDAR RAPIDS — A Cedar Rapids woman was convicted last week in Marshall County of embezzling funds from her former employer, a Marshalltown manufacturing company. 

Marcy A. German, 46, former office manager of Spread-All Manufacturing, pleaded guilty June 12 in Marshall County District Court to first-degree theft and tampering with records.

The criminal complaint states 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, the complaint states.

A charge of ongoing criminal conduct will be dismissed at sentencing as part of a plea agreement.

Court documents show the prosecutor will recommend running the 10-year and five-year prison terms concurrently and suspending both for a sentence of five years probation. She also will have to pay a fine of up to $6,250 on the tampering charge.

Any restitution for the theft charge will result 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.

Brian Maddick, president of Spread-All Manufacturing, said Thursday the theft was 'well over $10,000.' He said he couldn't disclose the total amount because of the pending lawsuit.

Maddick said Timothy German was the company's banker, but the relationship was severed in February following Marcy German'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.

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

'Mr. and Mrs. German regret that the plaintiff (Spread-All) has turned what should have been an easily resolved issue into a criminal matter and an expensive, potentially protracted lawsuit,' Brashers-Krug said Thursday. 'Mrs. German made some improper charges, and she feels terrible about them. Mrs. German would like to work with the plaintiff in good faith to examine each and every charge to determine which should be repaid and repay every cent promptly.'

Brashers-King added this has been a difficult time for the Germans, and they look forward to resolving their differences and moving on with their lives.

Marcy German will be sentenced Aug. 7 in Marshall County District Court.

A trial date for the civil suit has not been set.

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