CT office manager sentenced for embezzling nearly $1M from family-owned construction company

A Cheshire woman was sentenced Wednesday to serve two years in prison for an embezzlement scheme that defrauded a construction company in Orange out of $966,000.

A Cheshire woman has been sentenced to two years in federal prison and ordered to pay restitution after embezzling nearly $1 million from a construction company in Orange where she worked.

Erin Sullivan, 53, faced sentencing Wednesday in Bridgeport federal court where a judge ordered that she serve three years of supervised release once she is free from prison, according to the U.S. Attorney’s Office for the District of Connecticut.

The sentencing comes after she pleaded guilty in October to one count each of wire fraud and tax evasion, federal officials said.

According to authorities, Sullivan worked as the office manager for a family-owned construction business in Orange that federal officials only identified as “Company A.” Beginning “at least as early as 2016,” Sullivan made false entries into the company’s payroll and accounting system to generate hundreds of fraudulent checks payable to her or to “petty cash,” federal officials said.

“Almost immediately” after generating a fraudulent check, authorities said Sullivan would change the reference in the system to show that it had been issued to someone else.

According to federal officials, Sullivan also sometimes generated checks made out to the owner of the company and forged the owner’s signature to either cash the checks or deposit them into her bank account. She also altered the payroll system in other ways that led her to receive additional pay, authorities said.

Sullivan embezzled just under $966,000 during the scheme, according to officials. Authorities said she failed to pay about $233,000 in federal income taxes on the funds she embezzled between the 2016 and 2021 tax years.

During her sentencing Wednesday, a judge ordered Sullivan to pay more than $1.17 million in restitution. Authorities noted she has already paid about $640,000 of the restitution.

Sullivan is free on a $100,000 bond and is required to report to prison on April 8.