East Michigan News

East Michigan News

Monday, February 24, 2020

A Columbus, Ohio Man Defrauds Employer of Over $4 Million

By Press release submission | Jan 15, 2020

Courtmoney

U.S. Attorney's Office for the Eastern District of Michigan issued the following announcement on Jan. 15.

An employee of Cummins Bridgeway, LLC (“CBL”) and Cummins Inc. (“Cummins”), two Michigan-based companies operating in New Hudson, pleaded guilty yesterday to devising a scheme that defrauded his employer of over $4 million, announced United States Attorney Matthew Schneider.

Schneider was joined in the announcement by Steven D’Antuono, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

Pleading guilty was David Hudson, 54, of Columbus, Ohio. 

According to the plea agreement, Hudson worked for CBL from approximately 2003 through 2014, until it was acquired by Cummins.  Post-acquisition, Hudson was employed by Cummins.  The owners of CBL established two entities to which CBL profits were paid for the purpose of sharing profits with CBL management and employees.  While working at CBL, Hudson’s job involved transferring funds to these profit sharing entities in the normal course of business.  As part of his job, Hudson had authority to write checks from the profit sharing entities.  As part of the scheme to defraud, Hudson would, under false pretenses, direct an employee under his supervision to transfer CBL funds—and later Cummins funds—into one or more of the profit sharing entities.  Hudson would then, without authorization, write checks from the profit sharing entities to himself. It was the goal of this scheme that Hudson would take advantage of his authority and position in order to enrich himself at the expense of his employers. Between the years of approximately 2008 and 2017, Hudson's scheme resulted in the fraudulent transfer of over $4.5 million dollars.

Under the terms of the plea agreement, Hudson is facing a sentence of 51-63 months.  Hudson will be sentenced on April 15 at 3 p.m. before United States District Judge Arthur Tarnow.

This case was investigated by special agents of the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Timothy Wyse.

Original source can be found here.

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U.S. Attorney's Office for the Eastern District of Michigan