Alleged Dividend Embezzlement Scheme Leads to Arrest

According to a Reuters report, prosecutors allege that the clerk, Bernard Santos of New Jersey, who was responsible for the distribution of stock dividends to corporate clients, generated more than $523,000 through an embezzlement scheme. The federal prosecutors say that from about October 2005 through September 2006, Santos created bogus e-mails that requested payment of particular stock dividends, then transferred the dividends to his own bank account.

Santos faces one count of wire fraud and, if convicted, faces a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross loss or gain derived from the offense charged, according to the report.

Santos has already been released on a $100,000 bail bond, the U.S. Attorney’s Office said.