WLKY Investigates: Battling Embezzlement

WLKY Investigates: Battling Embezzlement
Steve Burgin/WLKY


LOUISVILLE, Ky. -- Several white-collar cases have recently cropped up in Louisville involving embezzling from area businesses. The cases range from the theft of a few thousand dollars to more than $1 million.

Some of those who lost money believed they were victimized twice.

Those victims aren't happy with a court system that allows those who steal hundreds of thousands dollars to be in and out of prison in a few months and go back to their old ways.

Linda Ireland ripped off Kentech for more than $340,000 during the recession, nearly putting the small father- and son-run company out of business.

“She was able to juggle the numbers, juggle the invoices, ghost checks, things like that, all the while making out checks to herself and cashing them,” Louisville Metro Police Detective Matthew Glass said.

Ireland blamed gambling on her thefts at Kentech.

“She doesn't have flat-screen TVs. She doesn't have cars. She didn't pay her rent. Every dime she ever took went into a slot machine,” said Ireland’s attorney, James Moore.

“I think the main thing for me is just the betrayal. Betrayal by her and betrayal by the justice system,” said Kentech’s Charles Blincoe.

Ireland, who was sentenced to 15 years, spent only 120 days in Metro Corrections.

“The courts, in handing down such light sentences, is saying to the public, especially the criminal public, ‘Hey, here's an easy way to make a lot of money and we won't do anything to you,’” Blincoe said.


When it comes to embezzlement associated with pathological gambling, Bud Newman with the Kentucky Council for Problem Gambling contends prison is a waste of time.

“Most of the gamblers I've worked with throughout the years have been ethical, moral, until the disease kicks in,” Newman said.

Gregory Woods got away with $1.2 million from Toyota of Louisville.

“His whole life, until this gambling addiction took a hold of him, there's nothing in his life that he violated any laws accept traffic tickets,” Woods’ attorney, James Moore, said.

Woods was given 15 years, but was freed on shock probation.

When Ireland was sentenced in June 2010, supporters filled the courtroom.

“Those are the faces of 20 compulsive gamblers who were in the room with Linda last week to celebrate her one year anniversary from gambling,” Moore said.

Ireland, 50, was ordered to pay back the $340,000 with interest at $250 a month.

Blincoe said she’ll never pay off her debt at that rate.

What bothers the Blincoes the most is that she started gambling again.

“At the bingo hall, couldn't believe it when she walked in the first time after she got out in 120 days,” Cam Blincoe said.

WLKY’s cameras found Blincoe sitting in front of bingo terminals at the beginning of February. At sentencing, there was no stipulation that she had to stop gambling, so Ireland was not breaking the law or violating her five year probation by gambling.

Ireland refused an on-camera interview with WLKY.

“The relapse rate is extremely high as it is with all addictions,” Newman said.

Newman said there should be stipulations for those sentenced on gambling charges.

“If I were the sentencing judge that would be the criteria, no more gambling, restitution,” Newman said. The Blincoes said they couldn’t agree more.

“It's sickening. It's absolutely sickening,” Charles Blincoe said.

Mistakes Made

Before mistakes tripped up Jennifer Carmichael, she had embezzled $1 million from her employer, Mercer Trucking.

“She'd been doing it for a long time, but as most white-collar criminals do, they make mistakes,” Assistant Commonwealth’s Attorney John Balenovich said.

Last month, Carmichael, a once-trusted employee at Mercer Trucking, was sentenced to 13 years. She remains in prison.

“Best we could tell, she was a spender. We don't know if she has any left or not. If she does, we don't know about it,” said Mercer Trucking General Manager Rick Reed.

Over 10 years at Mercer Trucking, Carmichael wrote herself 390 checks. In her case, $2,990 was a magic figure. Anything over $3,000 would have brought additional scrutiny. Reed said Carmichael did more than steal money from a family-run business.

“Employees felt very much like they were part of the development of the company and pretty much trusted. Doesn't get any more clear than that. There was a trust factor,” Reed said.

Reed said when Carmichael showed up to work in a new vehicle, she told a co-worker someone died and left her money.

At sentencing, Carmichael asked Circuit Judge Irv Maze for probation.

“Your honor, I beg you to have compassion and mercy on me. I can assure you that I will do everything I can to be a productive member of society,” Carmichael said.

“You can't steal a million dollars from your employer and not go to jail. This is one of the most egregious embezzlement cases in Jefferson County history,” Balenovich said.

Fortunately for Mercer Trucking, insurance made good on all but $25,000 of the $1 million Carmichael embezzled.

“We don't like the fact she's going to serve time and spend time away from her family, but we are glad Judge Maze found it appropriate. It's a lot of money,” Reed said.

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