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Palm Coast Payroll Manager Arrested on Charges After $15,456 Payroll Diversion

An owner’s review of insurance bills and subpoenaed bank records linked $15,456.72 in redirected pay to the company’s financial controller.

Overview

  • Investigators say the company’s financial controller used his payroll access over about seven months to redirect direct deposits for seven former employees into two bank accounts he controlled.
  • Authorities allege he also stopped his own health insurance deductions so the employer paid his premiums, increasing the total loss to the business.
  • Detectives subpoenaed bank records and traced $15,456.72 in unauthorized deposits to the controller’s accounts, prompting felony charges of organized scheme to defraud and grand theft.
  • The Flagler County Sheriff’s Office Fugitive Unit arrested Jimmy Paul Garcia Velez, he was booked at the county detention facility and later released on a $10,000 bond.
  • The case highlights weak internal payroll controls at the company and could lead to tighter checks on access to payroll systems as the investigation moves toward prosecution.