On January 30, 2018, in Dept 8-B of Superior Court for San Joaquin County Judge Ronald Northup sentenced Lodi resident HALEY JAYNE CLARE FLEMENS (age 48) to serve two years and eight months in the California State Prison for Women for felony counts of Falsification of Corporate Books (Corporations Code §2255) and CA State Income Tax Evasion (Revenue & Taxation Code §19706).
Mrs. Flemens was a long time bookkeeper for Stockton Railcar Repair, Inc., a 14-employee business in Stockton CA. Mrs. Flemens was arrested by Stockton Police Department Detectives in June of 2017 on charges of Embezzling $459,633.97 from her employer between March 2008 and April 2017. She was found to have taken the money in various ways including electronically debiting the monthly mortgage payments for her Lodi residence from her employer's checking account, forging checks on the account, and generating other debits and drafts to the account she managed for her own personal expenses. In a companion investigation by the Criminal Division of the California Franchise Tax Board, it was discovered that she filed CA State Income Tax Returns for 6 tax years declaring only her wages and not including the money she stole. Defendant Flemens was arraigned on the charges June 12, 2017 and entered Guilty Pleas on the two felonies on June 30, 2017.
In the time since the guilty pleas, her Lodi Residence was sold and the proceeds paid to her employer. Mrs. Flemens also surrendered a vehicle, a Harley Davidson Motorcycle, to the employer.
The Stockton Police Department and the Criminal Investigative Division of the CA Franchise Tax Board are complimented for their continued swift support in fighting these crimes which threaten the livelihoods of so many local families. The victims the DA's Office sees in such cases are nearly always small and medium proprietorships and family businesses. This case is one of several such cases the San Joaquin District Attorney has brought involving embezzlement. District Attorney Tori Verber Salazar urges local businesses to maintain strong accounting controls and dishonesty insurance coverage to protect the businesses and the jobs they provide from losses.
It is strongly suggested that someone other than the bookkeeper receive, examine and reconcile the bank statements. The most common fact pattern we see is pilferage from the company checking account where only a single employee operated and reconciled the bank accounts.
For any questions please contact: Deputy District Attorney Stephen E. Taylor, 209-468-2419.