Michigan Official Arrested on Online Scam-Related Charges
The former Treasurer of Alcona County, MI, has been arrested for allegedly embezzling more than $1.2 million in public money to invest in a Nigerian 419 advance-fee scam, said Michigan’s attorney general Mike Cox,
Thomas Katona, 56, of Harrisville, MI, has been charged with nine counts of felony embezzlement of public money, each of which carries a possible jail sentence of 10 years, and one felony count of forgery, which carries a possible jail sentence of 14 years, according to Cox’s office.
Named after the relevant code in Nigerian law, 419 scams are where thieves send people e-mail claiming to be from a government or bank official who needs help spiriting a huge sum of money out of the country, usually Nigeria. If a dupe falls for the scam, he or she is usually told that some up-front money is required for some bogus need, such as bribing local officials.
If the dupe pays the fee, the thieves will keep coming up with news fees, and string the dupe along as long as possible. If the scam works, the dupe will keep paying the fees hoping to recoup his or her losses. There have been reports of some 419 dupes traveling to Nigeria to meet the people scamming them and disappearing.
According to Cox’s office, while Katona was on vacation in England, Alcona County treasury employees learned from local bank officials that Katona had directed eight unauthorized wire transfers totaling $186,000, six of which were to overseas accounts.
An investigation revealed that Katona also wired $72,500 of his own money to the same accounts, according to Cox’s office. Bank officials warned Katona they thought he was being duped in a Nigerian advance-fee scam, but he ignored their warnings, according to Cox’s office.
An audit revealed that Alcona County has a shortage of more than $1.2 million, or more than a quarter of the county’s yearly budget, according to Cox’s office.
A preliminary hearing for Katona is scheduled for Jan. 31.
