[Chicago] Former Art Institute payroll manager indicted for $2m theft

In the US, a former Art Institute of Chicago payroll manager has been indicted for allegedly stealing more than $2 million in museum funds over the course of about 13 years, Chicago Sun-Times reports.

The indictment was announced on January 13 by Chicago’s U.S. Attorney’s Office. It accuses Michael Maurello of depositing money from the Institute’s payroll into his own bank account from 2007 to 2020.

Mr Maurello (56) was reportedly charged with two counts of wire fraud and two counts of bank fraud. 

Mr Maurello disguised the payments to himself by designating the funds in the payroll system to other or former employees, according to the indictment.

The Art Institute reportedly noticed the unusual account activity during a review in 2019. Mr Maurello was subsequently fired and reported to law enforcement, according to a museum spokesperson.

In January 2020, the museum’s assistant controller is said to have asked Mr Maurello about one of the payments and he claimed it was only a test of the payroll system, according to the indictment.

Prosecutors say Mr Maurello then edited the report in the payroll system to conceal the payment information, including falsely changing the employees’ names and the dates and dollar amounts of the payments.

The Sun-Times could not reach Mr Maurello for comment.

The museum has reportedly implemented new procedures to detect future theft and is recovering the funds through its insurance. 

“The cumulative loss was significant, but because of the length of time and manner in which it was taken, it did not impact decisions around staffing, payroll, scholarship funding, programming or other financial aspects of the organisation,” the Art Institute spokesperson said. 

Each count of bank fraud reportedly carries a sentence of up to 30 years in federal prison, while each count of wire fraud has a maximum of 20 years. 

An arraignment has yet to be scheduled.

Source: Chicago Sun-Times

(Quote via original reporting) 

In the US, a former Art Institute of Chicago payroll manager has been indicted for allegedly stealing more than $2 million in museum funds over the course of about 13 years, Chicago Sun-Times reports.

The indictment was announced on January 13 by Chicago’s U.S. Attorney’s Office. It accuses Michael Maurello of depositing money from the Institute’s payroll into his own bank account from 2007 to 2020.

Mr Maurello (56) was reportedly charged with two counts of wire fraud and two counts of bank fraud. 

Mr Maurello disguised the payments to himself by designating the funds in the payroll system to other or former employees, according to the indictment.

The Art Institute reportedly noticed the unusual account activity during a review in 2019. Mr Maurello was subsequently fired and reported to law enforcement, according to a museum spokesperson.

In January 2020, the museum’s assistant controller is said to have asked Mr Maurello about one of the payments and he claimed it was only a test of the payroll system, according to the indictment.

Prosecutors say Mr Maurello then edited the report in the payroll system to conceal the payment information, including falsely changing the employees’ names and the dates and dollar amounts of the payments.

The Sun-Times could not reach Mr Maurello for comment.

The museum has reportedly implemented new procedures to detect future theft and is recovering the funds through its insurance. 

“The cumulative loss was significant, but because of the length of time and manner in which it was taken, it did not impact decisions around staffing, payroll, scholarship funding, programming or other financial aspects of the organisation,” the Art Institute spokesperson said. 

Each count of bank fraud reportedly carries a sentence of up to 30 years in federal prison, while each count of wire fraud has a maximum of 20 years. 

An arraignment has yet to be scheduled.

Source: Chicago Sun-Times

(Quote via original reporting)