A Galt man was sentenced Wednesday in federal court in Sacramento for embezzling more than $800,000 from his former employer.
Galt resident Ruben R. Rios Jr., 42, was sentenced to three years and 10 months in prison by U.S. District Judge Kimberly J. Mueller.
Rios pleaded guilty July 21, 2011, to wire fraud. He will begin serving his sentence on Monday.
According to his guilty plea, Rios worked as the financial controller of Natomas-based company POS Portal, Inc., between December 2007 and August 2009. He utilized his corporate credit card for personal expenditures totaling $876,661, according to a federal Department of Justice news release.
The company also incurred finance charges on the personal expenses.
Through the use of the cards, Rios received approximately $360,000 in cash advances at casinos, spent nearly $100,000 for home improvements and supplies, paid for his grandmother's wake, paid approximately $60,000 in delinquent personal taxes and purchased four all-terrain vehicles, the press release stated.
He also used the credit cards to cover personal travel expenses totaling nearly $60,000, entered into an $8,000 personal training contract, customized multiple vehicles for $50,000, obtained nearly $80,000 in electronics and consumer goods and even wired funds to family members.
To avoid detection, Rios created false monthly statements for his corporate credit card that showed only business-related charges and excluded the personal expenses that he improperly incurred, according to the press release.
In April 2009, for example, Rios racked up approximately $115,000 in new charges, but submitted only $600 for authorization.
He paid the credit card balances by transferring funds from the company bank account into the credit card account, the press release stated.
As part of the plea agreement, Rios agreed to pay restitution to his former employer and to forfeit the remaining items he obtained through his fraudulent credit card use.
Rios's conviction and sentence resulted from an investigation by the Sacramento Police Department and the Sacramento County Sheriff's Department, with assistance from the IRS.
Contact reporter Katie Nelson at email@example.com.