Ex-Property Manager Gets 41 Months For Pilfering Funds Collected On Behalf Of Co-Op, Condo Association Clients, Then Failing To Pay Income Taxes On Diverted Dough

From the Office of the U.S. Attorney (District of Columbia):

• Lorraine Cyr, 58, was sentenced [] to 41 months in prison for embezzling over $380,000 from her employer and properties that she managed, announced U.S. Attorney Channing D. Phillips, [and others]. Cyr, of Palm Bay, Fla., pled guilty [...] to one count each of wire fraud and income tax evasion. [...] Following her prison sentence, Cyr will be placed on three years of supervised release. She also must pay $380,537 in restitution to a property management company and various other victims of her scheme, as well as $96,112 to the IRS. She also must pay a forfeiture money judgment in the amount of $342,917.
  
  According to a statement of offense submitted at the plea hearing, Cyr worked from 2001 until 2009 for a property management company, referred to in court documents as “Property Management Company A,” in Washington, D.C. She was vice president of operations during her last four years of employment, handling duties such as management of payroll, bank accounts, budgeting, invoicing, and tax preparation for the company and its clients. The clients consisted largely of cooperative and condominium apartment buildings in the District of Columbia.
  
  In 2009, Cyr started her own property management company, Lorraine Cyr Management Group, Inc., also in  Washington, D.C., in which she performed similar duties for various clients, including some who transitioned to her new firm. In her new role, she had virtually unfettered discretion to manage the business affairs of her clients, who granted her access to bank accounts to manage their operations and expenses.
  
  Between July and November of 2009, prior to resigning from “Property Management Company A,” Cyr embezzled $37,620, which she used for personal purposes, including spending at casinos and various retailers. Then, between March 2010 and April 2011, while at her own firm, she stole $342,917 in funds from eight clients. She used the money for expenses such as spending at casinos, hotels, amusement parks, clothing stores, restaurants, and other retailers.
  
  The tax charge stems from Cyr’s evasion of income taxes on the money that she was stealing, as well as the legitimate income that she was earning, during the course of her scheme.

Source: Former Property Manager Sentenced to 41 Months in Prison For Stealing Over $380,000 from Employer and Clients (Defendant Spent Money at Casinos and on Other Personal Expenses).