The general manager of a steel fabrication company in Shrewsbury Township ran the business into the ground by embezzling about $317,000, according to charging documents filed by state police.
James Robert Day kept Christine Kimball -- owner of Huber Welding Service -- in the dark about what was going on at the company, and threatened to fire any employees who tried to contact her about company operations, police allege.
He gave himself unauthorized bonuses and "reimbursements" and had the company pay for his personal expenses, including pest control at his home and sewer work at the home of his brother, his arrest affidavit states.
Day even sold some of the company's working vehicles and equipment as scrap metal and pocketed nearly all the cash, police allege; one of those vehicles still had a lien on it.
When Huber Welding Service started to lose money, Day took it upon himself to loan the company the cash to meet payroll and pay bills, according to police. But the interest he charged on his loans was higher than a line of credit the company already had available, police allege.
Day charged nearly $80,000 worth of purchases on the company's credit cards, including a $2,000 vacuum cleaner, restaurant bills, auto parts and auto detailing services, his affidavit states.
He also altered receipts so he could collect reimbursements for services that weren't work-related, police allege.
3-year probe: A three-year investigation into the alleged embezzlement by state police Trooper Christopher Colarusso culminated with Day being arraigned Wednesday on multiple felony charges, police said.
Day, 42, of 3008 Godfrey Road in Springfield Township, remains free on $100,000 unsecured bail, meaning he did not have to put up any money to be released.
He's charged with racketeering, three counts of forgery, dealing in proceeds of illegal activities, theft by extortion, theft by unlawful taking, theft by deception, receiving stolen property and theft by failure to make required disposition of funds.
He did not answer his home phone Thursday afternoon. His defense attorney, Ed Paskey, declined immediate comment.
The background: Huber Welding Service started out several decades ago in Cockeysville, Md., briefly moved to Shrewsbury Borough, then in 2008 relocated to 883 E. Tolna Road in Shrewsbury Township, police said. It employed 30 to 40 people.
Kimball hired Day in 2004 as a project estimator. At the end of that year, when she took maternity leave, Kimball agreed to allow Day and another employee to manage daily operations, according to the affidavit.
Around 2005, some employees began going to Kimball privately to express concerns that Day was stealing money from the company -- despite the fact Day had threatened to fire anyone who went to Kimball, the affidavit alleges.
Concerns dismissed: "Kimball advised (police) that she dismissed these concerns because she trusted Day was running the company with her best interests in mind," the affidavit states.
At the end of 2008, after having lunch with Kimball, Day demanded a $100,000 bonus and threatened to quit if he didn't get it, police allege. That's when Kimball fired him, police said.
Kimball contacted state police in April 2009 about the missing money, documents state.
Day's preliminary hearing is set for March 12.
-- Staff writer Liz Evans Scolforo can also be reached at firstname.lastname@example.org.