$3.4M Scheme: Ex-Controller Admits To Embezzling Family-Owned Armonk Business

According to court filings released on Thursday, Oct. 10, John Hickey, age 34, created false invoices that appeared to be from entities with which the Northern Westchester-based corporations did business from February 2018 to November 2023.

The company, located in Armonk, manufactured flame retardant fabrics.

Damian Williams, the US Attorney for the Southern District of New York, said Hickey then forged signatures that supposedly approved payment of those invoices and caused the accounting system to print checks payable to him in the amount of the invoices.

Once a check was printed, Hickey changed the payee on the check to match the name on the corresponding false invoice, and used a rubber signature stamp to sign the checks, Williams said.

According to the indictment, Hickey used the proceeds of the above scheme to gamble on sporting events, attend concerts and sporting events, improve and repair his home, and go on vacations.

Hickey, who began to work at the corporations while in college, pleaded guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison.

He became director of quality assurance before serving as controller.

Williams said Hickey exploited his position of trust for personal gain.

"Today’s guilty plea holds Hickey accountable for his illegal conduct and demonstrates our unwavering commitment to pursuing justice for victims of fraud," Williams said.

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