Accountant for Marion Company Convicted of Fraud and Tax Crimes

We recently learned through a press release that Converse resident Frederick McCracken was convicted by the Northern District of Indiana for wire fraud and making false statements on his income tax returns.

McCracken was an employee of Marion, Indiana-based company National Machinery and Conveyor.

U.S. District Court Judge Holly Brady sentenced McCracken to 46 months in prison, followed by two additional years of supervised release. In addition to his prison sentence, McCracken has also been ordered to pay $3 million in restitution, both to his former employer and the IRS.

McCracken started work with National Machinery and Conveyor in 2012 as an accountant. It was during his time employed with NMC that he committed these federal crimes.

After conducting their investigation, the FBI found that McCracken managed to steal a total of $2,440,490.46 from National Machinery and Conveyor.

From October of 2012 through July of 2018, McCracken wrote unauthorized checks from NMC bank accounts to his own personal business, which we learned through an anonymous tip was a tax preparation business. Then, from March of 2016 through July of 2018, McCracken also used NMC money to make payments on personal credit cards.

In total, McCracken wrote over 100 unauthorized checks from National Machinery and Conveyor’s bank account on more than fifty separate occasions.

Because he did not report this stolen money on his income tax returns, the IRS concluded that McCracken’s actions wound up costing them approximately $612,500 in tax revenue.

The agencies involved in this case included the Federal Bureau of Investigation, United States Postal Inspection Service, and the Internal Revenue Service Criminal Investigation Division. Following these investigations, Assistant United States Attorney Sarah E. Nokes prosecuted the case in front of the Northern District of Indiana, which ultimately found the former accountant guilty.

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