It is important for investors to trust where their money is going, especially if they're expecting a service from the company. Fox reported that an Alabama attorney was recently indicted for committing 21 counts of accounts payable fraud after he used his new status as part owner of Integrity Capital, Inc., to siphon money from the advance payments of area lawyers.
The accused, Christopher Linton, purchased a large share of stock in the company, which operated as a factoring business responsible for forwarding money to investors in the form of vouchers for performing work in the Birmingham area. According to the source, he fraudulently siphoned the money into his personal residence, construction projects on his home, vacations, recreational vehicles and other luxury items. As part owner, it was easy for Linton to use his position to cash personal checks on behalf of the company, making it possible to almost bypass accounts payable audits.
The source reported that the fraud was realized when the $2.8 million deposited to the company was instead delivered to Linton's Integrity Capital LLC account. He faces up to 20 years in prison and a $250,000 fine per each of the 21 charges. Additionally, Linton faces up to 30 years in prison for committing bank fraud, which came from a submission of a fraudulent commercial loan in the total of $908,650.