Released February 27, 2008
A former collections manager pleaded no contest February 26 to embezzling more than $323,000 from his former employer, according to the Franchise Tax Board (FTB).
Patrick J. Roche, 33, was found guilty of felony counts of grand theft with a special enhancement for a loss involving more than $150,000. He also was found guilty of two state income tax charges: tax evasion for failing to file his 2004 tax return, and tax fraud for filing a fraudulent 2006 income tax return. According to court documents, Roche created a fictitious company, Cal Computer Consulting Group, to embezzle from his former employer, a Santa Barbara based temporary employment agency, from 2001 – 2007.
Roche issued fraudulent invoices from his company, and then authorized payment as collections manager. Roche cashed the checks and used the money at restaurants, bars, adult entertainment, a kickboxing gym, online gaming, and stock purchases. In addition, Roche failed to report the $314,000 in illegal income on his state income tax returns. All income is taxable including income from illegal sources. The embezzlement was discovered during an audit of the company’s books.
Roche was ordered to pay restitution of $323,962 to his former employer, and $59,577 to FTB representing the unpaid tax, penalties, interest, and the cost of the investigation.
Roche’s sentencing is scheduled for March 25 at 8:30 am in Santa Barbara Superior Court Department SB-11. Roche faces up to four years in state prison.
Santa Barbara Superior Court Judge George C. Eskin accepted the plea in the same courtroom. Santa Barbara Deputy District Attorney Paula Waldman is prosecuting the case.