Police: Spring Grove man stole $272K from employer
A Spring Grove man is accused of stealing more than a quarter-million dollars from the Mechanicsburg-area company where he previously served as vice president.
Jeffrey P. King, 61, of 526 Monocacy Trail, is charged with one count of theft, graded as a second-degree felony. He remains free on $15,000 unsecured bail, meaning he did not have to post any cash but could forfeit that amount if he misses court hearings.
He was arraigned Tuesday in Cumberland County, according to court records. His preliminary hearing is scheduled for June 2.
Upper Allen Township Police allege King embezzled $271,998.72 from Valley Supply Inc., 700 Independence Ave., between January 2011 and September 2013. The business sells concrete and cinder building products to both wholesale and retail customers, according to police.
King was general manager and vice president of Valley Supply. In 2006 the business was purchased under an employee stock ownership plan agreement, and in 2010, King's salary was set at $90,000, charging documents state.
Big raise: In June 2013, the trustee of the business learned that King had increased his own salary to $173,000, according to documents — nearly double his authorized pay. Valley Supply was struggling financially at that time as well, and the trustee ordered an investigation into company finances, according to police.
"Given the volume of business the company was doing, Valley Supply Inc. should have been profitable," charging documents state.
A certified public accounting business was hired to investigate.
"During the preliminary investigation, it was readily apparent that Jeffrey King had been using the business credit cards for personal use and had given himself unauthorized raises and cash bonuses," documents allege.
On Aug. 22, 2013, King was summoned to meet with his superiors and, when he asked why, was told, "you know why," according to documents, which state that King "was not further interviewed and offered no admissions."
Terminated: He was fired the same day, police said.
Two months later, King untruthfully testified at his unemployment compensation hearing that his boss knew what he was doing, according to charging documents, which state he "did not prevail" at that hearing.
The CPA investigation determined King racked up about $33,000 in unauthorized American Express charges; wrote nearly $22,000 worth of unauthorized checks; gave himself more than $211,000 in raises and bonuses; and gave other employees nearly $31,000 in raises and bonuses.
King's defense attorney, Gerald Lord, did not return a phone message seeking comment.
— Reach Liz Evans Scolforo at email@example.com or on Twitter at @LizScolforoYD.