A former treasurer of Alcona County in Michigan has
been arrested after allegedly investing more than $1.2m of county
funds in Nigerian fraud scams.
Security firm Sophos said that Thomas Katona, who was
treasurer of Alcona County for 13 years, has been charged with
forgery and multiple counts of embezzlement. Both charges carry a
jail sentence of 10 years or more.
It is reported that county treasury employees became suspicious of
Katona's dealings after local bank officials informed them that he
had directed several unauthorised transfers to overseas accounts
during late 2006, including to beneficiaries linked with Nigerian
419 scams.
It was then uncovered that he had made further payments using his
personal savings, and had previously been advised by bank officials
that he was investing money in fraudulent schemes.
"Nigerian scam emails promise the world but deliver nothing in
return for the cash that people continue to invest," said Graham
Cluley, senior technology consultant at Sophos.
"Many people fall victim to email scams due to naivety, but in this
case Katona was warned about the consequences of investing and
decided to proceed regardless.
"There is not much that can be done to stop people who serve up
their wallets on a plate to scammers, but clearly handing over your
county's money cannot be tolerated, and hopefully this arrest will
serve as an example to others."