Man accused of embezzling $240,000 from Hiawatha business

Police said a Cedar Rapids man has confessed to embezzling more than $240,000 from a Hiawatha business during a 17-month span that ended this spring.

Scott F. Donnelly, 49, of 4309 Carpenter Rd. NE, has been charged with three counts of first-degree theft and one count of ongoing criminal conduct. Deputies arrested him Tuesday morning in downtown Cedar Rapids.

According to a criminal complaint, Donnelly was working as controller for Newell Machinery Co. when he misappropriated 10 checks totaling $242,531 between July 22, 2009, and March 7, 2011.

“He diverted company checks to a phony corporation and then on to his personal account,” Hiawatha Police Chief Dennis Marks said.

Hiawatha police first learned about the missing money when the owners of Newell Machinery contacted them in early March. Marks said officers executed a search warrant at Donnelly's residence shortly thereafter and seized evidence.

He later confessed to the crime, according to court documents. He was taken to the Linn County Jail on Tuesday, and his bond was set at $80,000.