Embezzler forces firm to lay off 25 Salisbury employees saddened, angered over $450,000 scam
By Katie Curley Katzman
Staff writer
SALISBURY — White Magic employees say they are holding out hope that justice will be served come March, when a former employee will be sentenced for a scam that nearly put the local carpet cleaner out of business.
Federal authorities charged Victoria Jordan, 32, with 15 counts of wire fraud after they found that during a nearly four-year period, she inflated her $52,000 salary and stole $450,000 from her employer. She pleaded guilty last month and will return to federal court in March for her sentencing. Jordan faces up to 20 years in jail and a $250,000 fine for each count.
"She hurt a lot of people, and a lot of people got laid off because of it," said John Duda, who is in charge of the company's technical services. "We are in a horrible position of debt now because of her. She basically used White Magic as her own personal bank."
Duda said the once 35-strong Main Street company is down to just 10 employees today.
"In its heyday, we were really strong, but she left us in ridiculous debt," Duda said.
Jordan inflated her salary as chief financial officer to embezzle from the company, according to court documents. She also added her husband to the payroll despite the fact he was not an employee of the company, cashed checks drawn on company accounts, made unauthorized purchases of personal items with the company credit cards and used company funds without permission to pay for a life insurance policy, personal cell phones, individual retirement account deposits and fraudulent mileage reimbursements.
Federal authorities allege Jordan paid herself, $83,850 in 2004, $97,194, in 2005, $126,000 in 2006, $151,941 in 2007, and in the first 10 months of 2008, took home $207,000. After placing her husband on the payroll, she collected another $38,000. Her husband has not been charged.
Federal wire fraud charges came into play because Jordan obtained her salary through Automated Clearing House transactions that funneled through a Minnesota office, according to court documents.
Court documents indicate federal authorities want Jordan to give back any and all money and property taken from White Magic.
Duda said Jordan was not a well-liked employee and often showed up with new cars, snowmobiles, Hummers and Harley Davidson Motorcycles and cell phones. Her annual holiday light display outside her home was once voted second place in Salisbury.
"It was up again this year," Duda said, adding he feels White Magic should put a sponsorship sign on her lawn. "White Magic paid for all that."
Duda said the real person who has paid is founder and owner of the company, Paul Richardson.
Richardson, who now runs the business from out of state, started White Magic in 1980 as a carpet cleaning service and distributor. In 1983, Richardson began manufacturing truck-mounted carpet cleaning and upholstery equipment.
Duda said Richardson trusted Jordan with all the finances and never checked the books. When Richardson was in the hospital for over a year suffering from injuries sustained in a motorcycle accident, Duda said Jordan ramped up the theft by giving Richardson false financial reports and using company money to pay her own living expenses.
"Paul put everything he had into this place," Duda said. "He hasn't been able to retire now. He put himself in debt so we can try to dig ourselves out of this hole she left us in."
During Jordan's time as CFO, White Magic international sales manager Dan Jolly partnered with Jordan to buy the business from Richardson, as Richardson hoped to retire. White Magic employees now believe she wanted to buy the company in order to cover up what she had been doing.
"I was probably one of the closest to her," Jolly said. "I knew she was rough, but I didn't know she was a thief."
Jolly partnered with Jordan, securing a loan and working with financial consultants. It wasn't until they were 30 days away from purchase that the charges were made public.
"Paul had looked me in the eye and said I couldn't trust anyone more with the finances," Jolly said. "He hadn't looked at the books in years."
Under the plan, Richardson was going to hold paper on the business and become a half partner.
When authorities got involved, Jolly found himself with a $10,000 loan and no business to make the payments.
"It took me thousands to get into the deal to buy and thousands to get out," Jolly said.
Jolly, has had to open a business on the side, Powder Max in Eliot, Maine, in efforts to get out of debt.
"I took a 13-week layoff from White Magic and had to take money out against my home," Jolly said. "She has me working 70 hours a week, and I have kids."
Jolly said that eventually he hopes to either make a move into the powder coating business full time or sell Powder Max and pay the loan off.
Since Jordan's embezzlement has come to light, White Magic owner Richardson has hired outside auditors, and Duda has worked to install all new accounting software.
"She made such a mess, we basically had to start over," Duda said.
Jolly as well as other employees plan to go to Jordan's sentencing hearing on March 9.
"We're not going to start trouble. We just want to see her off," Jolly said. "The best thing we can do is make sure White Magic stays open. I made sure to send her a brochure to my powder coating business when I opened it."
'A sad case'
Salisbury police Chief David L'Esperance said he found out about the thefts after the owners of the company approached him last year with serious concerns about Jordan, whom they considered to be a "trusted employee."
Because the money was allegedly sent over state lines, federal authorities were brought in to work with Salisbury Detective Mark Thomas.
"This was a sad case of a family business that entrusted someone with operational control over their assets, and this woman made a very poor choice," L'Esperance said yesterday. "We've spoken to the victims, and they are trying to rebuild. We wish them well."
L'Esperance credited the United States Attorney's office, the U.S. Secret Service and Salisbury Detectives for a thorough job in the investigation.
"We are happy this case is coming to a close," he said.
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Cant trust anybody!!
