Released April 22, 2008
A former collections manager was sentenced to 4 years in state prison for embezzling more than $323,000 from his former employer, according to the Franchise Tax Board (FTB).
Patrick J. Roche, 33, was also ordered to pay restitution to his former employer of $323,962 and $59,577 to the FTB representing the unpaid tax, penalties, interest, and the cost of the investigation. Roche was found guilty in February for 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. One charge of tax evasion for failing to file his 2004 tax return, and a second of 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 kick boxing 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.
Santa Barbara Superior Court Judge George C. Eskin handed down the sentence in Department SB-11. Santa Barbara Deputy District Attorney Paula Waldman prosecuted the case.