The former office manager of Sheboygan-based Beaudry Electric Motors will serve six months in prison for embezzling more than $430,000 from the company over a two-year period.
Lynette Lomibao pleaded guilty in May to a wire fraud charge and another for making false statements. Judge Lynn Adelman sentenced her this week to concurrent six month sentences on both charges. Lomibao also received three years of supervised release for the wire fraud charge and one year for lying to the IRS.
According to court documents, Lomibao began embezzling from Beaudry Electric Motors, which specializes in electrical motor repair and rebuilding, in August 2011 by creating false vendor bills for fictitious services or items. She would then pay the bills by transferring money from the company’s U.S. Bank account to personal checking accounts she held at Sheboygan Area Credit Union, Guaranty Bank and Wells Fargo Bank.
Jay Beaudry, BEM president, noticed irregularities in the company’s accounts in late 2013 and an internal investigation exposed the scheme.
Lomibao’s attorney argued for her to receive one year and one day of imprisonment or a sentence split between imprisonment and home confinement. Lomibao had faced up to 23 years in prison.
“She is already frightened and deterred, so a lengthy sentence is not necessary to impress or deter her further,” Tom Phillip of Federal Defender Services of Wisconsin Inc. wrote.
Phillip wrote that Lomibao had been diagnosed with obsessive compulsive disorder in 2000, primarily focused on compulsive gambling. He pointed to Oneida Casino records showing she had a cash pay in of $212,364 in 2013 alone.
“Lomibao did not use the embezzled funds to finance a lavish lifestyle. Rather, as the casino records show, the vast majority of the funds went to gambling,” he wrote.
Lomibao is also ordered to pay more than $430,000 in restitution to the company and roughly $127,000 to the IRS.
