Accountant embezzled $800K from client with dementia

An accountant working at a Georgia-based wealth management firm pleaded guilty to embezzling $800,000 from an elderly client suffering from dementia.

Heidi Royal, 52, of Dallas, Georgia, an accounting manager and bill pay supervisor at Homrich Berg in Atlanta, pleaded guilty to wire fraud and aggravated identity theft, the Justice Department announced Monday. Royal had access to the Social Security Number, usernames and passwords of an elderly client, identified only as C.K., for C.K.’s investment accounts and bank accounts. As part of her duties and responsibilities at the firm, Royal provided professional accounting services and bill-pay services to C.K. for more than a decade. Over the years, she gained C.K.’s trust and developed a close personal friendship with her. Royal even told a co-worker at the firm that C.K. was like a grandmother to her. From June 2010 through March 2021, Royal misappropriated approximately $800,000 of C.K.’s money and converted it to her own use.

As part of the scheme, Royal stole C.K.’s annuity payments, wrote more than 200 fraudulent checks on C.K.’s bank accounts, forged C.K.’s endorsement on checks, withdrew cash from C.K.’s bank accounts and converted it to her own use, used the electronic bill-pay feature associated with C.K.’s bank accounts to divert money, used PayPal to make electronic payments to herself from C.K.’s bank accounts, impersonated C.K. in telephone conversations with financial institutions, and made false and misleading entries in C.K.’s financial records to make the fraud harder to detect. Royal also used C.K.’s name and Social Security number to open a secret bank account where she hid and disguised the fraud proceeds.

“Royal exploited the trust placed in her by an elderly client who was unable to manage her own affairs,” said U.S. Attorney Kurt R. Erskine in a statement Monday. “Our office continues to prosecute anyone who targets vulnerable members of the community, especially the elderly.”

In mid-March 2021, when Homrich Berg learned that checks drawn on C.K.’s bank accounts had been deposited into Royal’s personal accounts, the firm immediately terminated Royal and reported the matter to law enforcement. “Homrich Berg became aware of suspicious transactions involving a former back office employee involving one client,” said a spokesperson. “Given the seriousness of the accusations, HB quickly terminated the employee and has been actively working with the client and law enforcement to ensure that the case is handled swiftly and appropriately. The result of this cooperation was a guilty plea entered by the former employee. Our findings and the findings of an outside forensic accountant confirmed our belief that this misconduct was limited to one employee and one client. We reimbursed the client for lost funds and believe.”

Sentencing for Royal is scheduled for May 31.