Health Insurance CFO Gets 1 Year for Embezzling $632,000

From US News, “The former chief financial officer of a Washington state health insurance company that serves people on Medicare has been sentenced to a year in prison for embezzling $632,000.

Federal prosecutors said Zachary Augustus Smulski took the money from Federal Way-based Soundpath Health in an effort to finance his own startup companies — but paid it back as soon as he got caught.

Smulski was hired as Soundpath’s CFO in 2008; he made $180,000 a year, court documents indicate. In 2011, he started diverting money to himself and used fake accounting documents to conceal it, prosecutors said. The company’s comptroller started asking questions in the midst of a state audit in 2012.

 

That’s when Smulski suddenly returned the money, personally depositing a cashier’s check in Soundpath’s account at a bank branch, and lying to other company officials about where the money had come from, prosecutors said. He then left the company, refusing to answer questions.”

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