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Former CFO, husband to serve time for embezzlement from casino nightclub company

By Karen Florin

Publication: theday.com

Published September 04. 2014 5:09PM   Updated September 05. 2014 12:08AM

The former controller and chief financial officer of an entertainment group that owns and operates restaurants and nightclubs at Foxwoods Resort Casino was sentenced Thursday in U.S. District Court to 46 months in prison for embezzling approximately $2.5 million from the company and structuring bank deposits to avoid triggering reporting requirements.

Lynn A. Scheufler, 36, formerly of Woodstock, Conn., and now living in Vermont, had pleaded guilty in March to illegally structuring financial transactions as part of a pattern of illegal activity. Her husband, 42-year-old Craig L. Galligan, was sentenced to 18 months in prison for his role in the crime.

Judge Alvin W. Thompson ordered the couple, who are free on bond, to turn themselves in to prison on Oct. 7. He ordered each to serve three years of supervised release after completing their prison terms and to perform 150 hours of community service.

Scheufler was the controller and chief financial officer of Big Night Entertainment Group of Boston, which operates three venues at Foxwoods: SHRINE Asian Kitchen Lounge and Nightclub, Scorpion Bar and High Rollers Luxury Lanes and Lounge.

According to the government, she was responsible for filling ATM machines located in the company’s venues from night deposit bags containing cash from daily business operations. Over the course of two years, she embezzled approximately $2.5 million by taking cash out of night deposit bags, according to the government.

The investigation revealed that the couple lost a large portion of the embezzled funds gambling at Connecticut’s casinos. The couple deposited approximately $600,000 in stolen cash into their personal bank accounts, illegally structuring the transactions so that no individual deposit exceeded the $10,000 threshold that would have triggered bank reporting requirements, according to the government.

As part of her sentence, Scheufler was ordered to pay a money judgment of $614,390, approximately $47,000 of which has been satisfied from the sale of property.

This matter was investigated by the Internal Revenue Service Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Michael S. McGarry.

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