Ex-treasurer pleads guilty in Nigerian investment scam

Court Alerts

[##_1L|1317394418.jpg|width="130" height="90" alt=""|_##]Even his attorney finds it baffling that former Alcona County treasurer Thomas Katona would have dumped as much as $1.2 million in public funds into fraudulent Nigerian investments. "It's the mystery of the human being, human frailty," defense lawyer Dan White said Tuesday after his client pleaded guilty in circuit court to eight counts of embezzlement, two counts of forgery and one of attempted embezzlement.

Katona, 56, was charged in January with siphoning money from an investment pool belonging to the rural Lake Huron county where he was treasurer - an elected post - from 1993 until his dismissal last year.

State police said he authorized wire transfers totaling $186,500 last summer to overseas accounts linked to the well-known Nigerian scam. They suspect he lost more than $1.2 million in county funds altogether - plus $72,500 of his own money, despite a warning from his bank that he might be getting swindled.

"I'm sure if you were to ask Mr. Katona how did this happen, he'd just shake his head and say, 'I don't know how I let it happen, but I did,"' White said in a telephone interview.

Variations of the scheme have been around for years. They begin with unsolicited letters - or, increasingly, e-mails - seeking help in transferring millions of dollars from Africa to overseas accounts.

The recipients are typically offered a generous share of the money if they pay what they are told are upfront costs such as taxes, fees and bribes. Those who play along can lose large sums before realizing they've been fleeced.

Katona entered his pleas during a routine hearing ahead of a trial that was to begin later this month.

The Michigan attorney general's office, which is prosecuting the case, offered no plea bargain. White said Katona pleaded guilty to all charges to avoid wasting the court's time and money "proving what is very apparent."

Matt Frendewey, spokesman for Attorney General Mike Cox, said Katona's decision was "a testament of the strength of the case the state had against him."

Sentencing was scheduled for June 12. A count of forgery is punishable by up to 14 years in prison, while the maximum is 10 years for embezzlement and five years for attempted embezzlement.

"If he gets a long enough sentence, I think the county can start healing," said Kevin Boyat, chairman of the Alcona board of commissioners. "There's still going to be people mad for a long time."

Katona pleaded guilty to two felonies in 1998 after falsifying documents for private accounting clients. Under his plea bargain, the charges were dismissed after he stayed out of trouble for a year.

Voters re-elected him in 2000 and 2004.

Boyat said he hoped Katona would provide a detailed accounting of where the money went. The attorney general's office will seek restitution, Frendewey said.

It won't be clear how the thefts will affect Alcona finances until the state treasurer's office finishes auditing the county's books, Boyat said.

"It doesn't look real good," he said, adding that spending cuts might be needed.

Related listings

  • Man faces court over veteran's beheading

    Man faces court over veteran's beheading

    Court Alerts 05/09/2007

    [##_1L|1230965326.jpg|width="120" height="101" alt=""|_##]A 41-year-old mental health patient has faced a northern New South Wales court charged with the decapitation murder of 82-year-old Armidale war veteran Mark Hutchinson. Mr Hutchinson's body wa...

  • Frank Schilt pleads guilty to murder of wife

    Frank Schilt pleads guilty to murder of wife

    Court Alerts 05/08/2007

    [##_1L|1091592986.jpg|width="130" height="90" alt=""|_##]A man accused of killing his wife and dumping her body in a landfill pleaded guilty on Monday. In September, a judge ordered Frank Schilt to stand trial for the murder of his wife, Terri, altho...

  • South Plainfield handyman convicted of murder

    South Plainfield handyman convicted of murder

    Court Alerts 05/07/2007

    [##_1L|1335306527.jpg|width="130" height="90" alt=""|_##]New York - A jury in Middlesex County convicted a 45-year-old handyman this morning of strangling his girlfriend and dumping her remains in the trash in 2005. Paul Cibelli Jr. frowned and looke...

New York Commercial Litigation Law Firm - Woods Lonergan PLLC

Founded in 1993 by Managing Partner James F. Woods, Woods Lonergan PLLC has built a strong reputation as a resourceful and industrious firm that provides clients with clear, concise, and straightforward answers to their most challenging legal issues. Partner Lawrence R. Lonergan, who joined the firm in 2008, has been a friend and colleague to Mr. Woods for over 40 years and shares the same business philosophy. Woods Lonergan PLLC’s collective experience and expertise enables the firm to expeditiously and effectively analyze the increasing challenges clients face in an evolving business and legal world, in many instances, avoiding unnecessary time and expense to our clients. Our mission is simple: provide cutting-edge expertise and sound advice in select areas of the law for corporate and business clients. We thrive on providing each client with personalized attention, forceful representation, and a collaborative team effort that embraces collective knowledge.

Business News

New York & New Jersey Family Law Matters We represent our clients in all types of proceedings that include termination of parental rights. >> read