Couple indicted in embezzlement of funds from casino clubs

A Hartford grand jury returned a six-count indictment Wednesday charging the controller and chief financial officer of an entertainment group that owns and operates restaurants and nightclubs at Foxwoods Resort Casino, and her husband, with embezzling more than $2.5 million from the company.

The government alleges that Lynn A. Scheufler, 34, and Craig L. Galligan, 41, used $1.4 million in embezzled funds to gamble at Foxwoods and Mohegan Sun. They were arrested in October at their Woodstock home, according to U.S. Attorney David B. Fein, and later released on bond. They now live in Vermont.

Scheufler was the controller and CFO 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. Galligan worked as a financial analyst for another company.

Scheufler is charged with four counts of wire fraud, and Scheufler and Galligan together are charged with one count of conspiracy and one count of illegally structuring financial transactions.

According to the government, the couple’s crimes took place between January 2010 and March 2012.

As CFO, Scheufler was responsible for all aspects of the company’s finances, including using cash proceeds from the business that had been placed into nightly deposit bags to fill ATM machines in the company’s venues.

She is accused of taking cash out of the deposit bags and making unauthorized withdrawals using the company’s ATM cards. She concealed the thefts by misstating or altering the company’s books and records, according to the government.

According to the government, the couple deposited more than $700,000 in cash into their personal bank accounts. They made the deposits in increments smaller than $10,000 so as to avoid triggering bank reporting requirements.

According to court documents, after the thefts were discovered, the company retained an independent forensic accountant to help reconstruct the company’s books and records for the relevant time period. They also hired a new chief financial officer from outside the company.

Wire fraud carries a maximum term of imprisonment of 20 years, and conspiracy and structuring each carry maximum terms of five years of imprisonment.


Loading comments...
Hide Comments