An accounts payable audit found that Valencia Person, a former employee for XM Satellite Radio embezzled more than $900,000 from the company over a period of three years.
According to Sirius Buzz, the audit was conducted after several of XM's vendors let the firm know they had not received payments. Further investigation into the matter revealed that Person, who worked in the accounts payable department, and another employee, Brenda Jones, had been paying themselves the money that was owed to the vendors. In response to the theft, XM sued the two former employees. The case went to court in November 2010, and XM ultimately won, resulting in the company receiving more than $2 million in compensation.
Person and Jones were able to steal the funds by diverting a large number of payments originally meant for vendors to several bank accounts held by Jones, reports WUSA-TV. Jones would then give part of the money to Person, and both employees created false invoices in XM's accounting system to cover up the illegal activity. The source states that Jones left her position in 2006, approximately a year after the scheme started, but she still received more than $690,000, which was fraudulently deposited into her bank account.
Once the AP audit discovered the theft, Person was arrested and pleaded guilty in March to a federal charge of conspiracy to commit wire fraud. She has since been sentenced to more than a year in prison and will be forced to pay $908.924 in restitution. Jones also pleaded guilty to the same count in January and is currently awaiting sentencing.