© Kirill Makarov | Electronics Production | August 16, 2011

Former Flextronics employee guilty of USD 1.3M theft

Richard John Schwalbe - former employee of Solectron Corp., now Flextronics International Ltd. - was sentenced for embezzling at least USD 1.3 million from his employer and ordered to pay approx. USD 1.3 million in restitution and to serve two years, eight months in state prison.
Attorney General Kamala D. Harris today announced that Mr Schwalbe was convicted of two counts of grand theft. One count was for the embezzlement of certain funds that were owed to his employer into accounts that he controlled. The second count was for his acts in taking over and collecting in his personal account a debt owed by Insiphil, a Singapore based company, to Solectron.

"Embezzlement is a serious crime and comes with serious consequences," Attorney General Harris said. "White-collar criminals must be held to the same standards as everyone else."

A Department of Justice investigation found that Mr Schwalbe had taken advantage of his position at Solectron Corporation to collect in his own account over USD 800,000 in obligations owed to Solectron. In a second scheme, Mr Schwalbe was responsible for collecting an obligation owed to Solectron by Insphil. Misusing his position as credit manager, he renegotiated the obligation owed by Insiphil, directed Solectron personnel to write down the obligation, and then caused Insiphil to continue making payments to an account controlled by himself. In total, Schwalbe embezzled more than USD 1.3 million from Solectron.

Richard John Schwalbe entered no contest pleas to two counts of grand theft, admitted taking more than USD 1.3 million, and admitted committing two or more related offenses involving theft. He was arrested on January 26, 2010 and entered his no contest pleas on June 24, 2011.


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