For release on November 10, 2016   CONTACT: Victor Chen, Deputy District Attorney Economic Crimes Unit (408) 792-2665   CEO EMBEZZLED $3.2 MILLION FROM SOUTH BAY BANK   The head of a temp company will be sentenced today for embezzling more than $3.2 million in business loans from a South Bay bank.   Susan Magley, 61, of San Francisco, spent the bulk of the diverted company loans on vacations, monthly rent of $6,250, dining out, expensive shopping sprees to Barney’s and Neiman Marcus, and $600 per month on dry cleaning bills.   Magley will be sentenced by the Hon. Sharon Chatman in Department 39 at 2:30 p.m. On June 13, 2016, Magley pleaded guilty to a felony count of Grand Theft. She faces up to six years in jail.   “It doesn’t matter if she stole it from a bank or a widow,” prosecutor Victor Chen said. “She lived an extravagant lifestyle funded solely with stolen money.”   Between 2010 to 2012, Magley finagled the loans from the Bridge Bank of San Jose by providing false and inflated figures of her company’s financial reports. Based upon the false reports, Magley appeared to be operating at a profit. In fact, the defendant’s company secretly lost $1.2 million over that time. The scheme was discovered during an audit at the end of 2012. By the time the company went out of business in 2013, the defendant had paid herself over $2 million in salary, bonuses, interest-free loans, and distributions from her company in the preceding three years.   After the defendant’s arrest on September 17, 2015, a forensic analysis of the defendant’s personal bank accounts and other financial documents revealed she was regularly siphoning off $30,000 per month from the company and putting it into her personal account.   The defendant was able to keep much of the stolen loot by moving it around to secret bank accounts and eventually filing for bankruptcy. In her bankruptcy petition, the defendant concealed the existence and value of these accounts from the trustee. The District Attorney’s Office traced some of these ill-gotten gains to overseas banks.   # # #   Attachment:

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