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Former Darex embezzler gets federal time for fraud

Wire and staff reports

A former accountant who did jail time for embezzling from an Ashland firm in 2003 was sentenced to 5 1/2 years in federal prison Monday on a separate case of mail fraud and money laundering charges after defrauding a Brookings company.

U.S. District Judge Owen Panner ordered 50-year-old Gary Allen Green of Brookings to pay more than $400,000 restitution to Tidewater Contractors Inc., a road building company.

Assistant U.S. Attorney Byron Chatfield says Green devised a sophisticated scheme to defraud the company, and diverted the money to pay for cattle, a honeymoon, a 53-foot sailboat, mutual fund investments and other personal expenses.

Chatfield says the sentence handed down in Medford was longer than federal guidelines.

In a separate case, Green, who lived in Medford at the time, spent a year and a half in prison after embezzling $650,000 from Darex Corp. in Ashland.

Green pleaded guilty in June 2003 in Jackson County Circuit Court to charges of racketeering and three counts of first-degree aggravated theft. In exchange for the plea, Judge Lorenzo Mejia dismissed two additional counts of racketeering.

Green, who had worked at Darex for six years, stole approximately 10 percent of the company's net sales — about half of its total profits — between April 2001 and July 2002, according to the Jackson County District Attorney's office. Darex manufactures and markets drill-bit sharpeners for industrial use. Green attempted to blame the losses on the downturn in the economy.

Green disguised the embezzlement through three fictional companies that he registered with the state. He then billed Darex with invoices from "Advanced Machining Solutions," "Applied Manufacturing Technology" and "Northwest Industrial Products," which he created on his office computer. While Green was on vacation, his assistant found the fraudulent invoices and notified the company.

He had repaid about half the money from the time of his arrest to his sentence.