Embezzlements Increase With Gambling Addiction

Gambling addictions blamed for "steady trend" of embezzling


ST. LOUIS (KMOX) -- The U-S Attorney's office is warning employers to set up safeguards against embezzlement, after the secretary-treasurer of a labor union is sentenced for stealing money to support her gambling habit.

Sherell Mitchell was sentenced to six-months home detention, five years probation and 200 hours of community service. She must also make restitution. The 45-year old pleaded guilty to embezzling more that $110,000 from the Communications Workers Union local 86823.

"Just because somebody looks trustworthy doesn't mean they are," said Assistant U.S. Attorney Tom Albus.

Albus says Mitchell claimed to have suffered from a gambling addiction since 1990 and by 2002 was gambling "on a daily basis."

"She indicated that her preferred form of gambling was slot machines," Albus said, "And she used the proceeds of her embezzlement to pay for her addiction."

In her guilty plea, Mitchell admitted writing out checks to herself and withdrawing cash from the union's account. Over a seven year period, Mitchell wrote $58,000 worth of checks and withdrew $51,000 in cash to gamble in sprees of sometimes $300 to $400 dollars a day, Albus said.

The case represents what Albus says is a "steady trend" of gambling-related embezzlement here.

"On an almost monthly basis we will see normal people -- whatever that means -- church-going, family people that have hobbies and interests just like I do and they're robbing their employer's blind," Albus said.

One recent case involved an elderly Montgomery County woman caught stealing money from a school district to fuel her gambling habit.

"She was a little old lady who was a secretary in Wellsville-Middletown school district , and just as nice-- and a kind of understated lady, about 65 years old -- as you would ever want.

"And she robbed a 100-thousand, 200-hundred thousand bucks from this very small school district out in Montgomery County, and it all went to the gambling boat out in Booneville."

The U-S Attorneys office is warning employers to invest in an internal audit and set up the checks-and-balances to guard against embezzlement.

As part of her plea agreement, Mitchell made a $50,000 lump sum payment toward the restitution amount and must pay the remainder of the restitution over the course of her term of probation.