A former accounting manager for the LA-based media technology services firm Hypermedia Systems has been sentenced to 10 and a half years in prison for embezzling over $36m.
Paul McDaniel pleaded guilty in September 2019 to one count of wire fraud, having used the funds from his employer’s client to pay off tens of millions of dollars in credit card debt.
Across a period of more than seven years, McDaniel provided accounting assistance to Hypermedia Systems from his position as an employee at E-Times Corp, a professional services group.
As a part of his responsibilities, McDaniel was able to request and approve payments to be made to Hypermedia vendors, a company he had formed and controlled.
Over 100 false invoices were created by the offender claiming that goods and services had been provided to Hypermedia vendors.
In turn, McDaniel fraudulently shifted over $36m into the false company, using $23m to pay off credit card bills with a further $8m added to his personal bank accounts.
Arrested in Costa Rica in 2017, the ex-accountant was then extradited to the US and has now been ordered to pay $36,332,388 in restitution to Hypermedia.