A Medina man has been indicted in federal court on charges of stealing about $275,000 from his employer to pay for a country club membership, vehicles and items from Victoria’s Secret and GNC.
Brian K. Stepp, 50, was charged in U.S. District Court with multiple counts of conspiracy to commit wire fraud, wire fraud, making false statements and other charges.
Rachel M. Penn, 41, of Wellington, was also indicted on charges of conspiracy to commit wire fraud and wire fraud, according to a press release issued Wednesday morning by the U.S. Department of Justice.
Stepp and Penn worked together at Variety Contractors, Inc., a Seville company that provides general contracting services for large public and commercial retail construction projects in Ohio and other states.
“These defendants used this company’s coffers like their own personal bank, stealing from their employer to provide for a lavish lifestyle,” U.S. Attorney Carole Rendon said in the press release.
Stepp joined the company as vice president and eventually was promoted to acting president, though the company owner retained the ultimate decision-making power. Penn worked in the accounting department, where her duties included reviewing employees’ expense claims and issuing reimbursement checks, according to the indictment.
Stepp and Penn are accused of conspiring to defraud Variety Contractors between February 2014 and May 2015.
Stepp incorporated S&S Kelsey LN, a shell company that didn’t engage in actual business. According to the indictment, he submitted fake invoices from S&S and other vendors to Variety Contractors for goods and services that weren’t provided.
Stepp and Penn caused Variety Contractors to make payments for those fraudulent invoices, according to the indictment.
For example, in September 2014, a check request for $31,000 was made for payment to G.C.I. for a “deposit for exterior metal panels,” the indictment stated. Three days later, Penn issued a check for this amount to Ganley, which Stepp used to partially pay for a 2015 Chevy Silverado pickup truck that he purchased in his wife’s name, according to the indictment.
Stepp also used a company credit card to pay for personal expenses, including a membership and related fees at Weymouth Country Club, payments for vehicles for himself and his family, local hotel charges, legal fees and purchases at Victoria’s Secret and GNC, the indictment alleges.
Stepp also made numerous false statements in attempting to get several loans, according to the indictment.