fraud case success story
TRANSCRIPT
Downtown Eugene Inc.
• Russell Carl Brink
• Age 55
• Executive Director
• Association of downtown Eugene
businesses
• Business Improvement District
• Collection of dues
• About 15% from the City of Eugene
(taxpayer funds)
• Funds used for promotion of
Downtown
• Mall Guides – “Red Hats”
• Annual budget of about $500,000
• Volunteer Board of Directors
Management Transition
• 2008 – decision to
transition management
of DEI to the Chamber
• Reduce overhead
expenses
• Contract with Brink to
assist in the transition
• $10,000 per month for
a three month period
The Discovery
• Brink does not perform
during the transition
period as expected
• Contract is terminated
early
• Brink re-locates to New
Hampshire
The Discovery
• During a review of
documents in Brink’s
office a discarded Wells
Fargo Bank statement
for August 2008 is
discovered
• Suspicious ATM cash
withdrawals
Financial Analysis
• DEI’s finances for a one
year period are
examined by a private
CPA
• Discovery of numerous
suspicious transactions
• First report to Police in
April 2009
In the Media
The Investigation
• Discovery of two DEI
Bank accounts
– Wells Fargo Bank
– Bank of America
• ATM cash withdrawals
from local bars and
clubs
• Locations all operated
state video poker
machines
The Investigation
• Cash back from
deposits
• Irregular pay checks to
Brink for varying
amounts
• Direct bank transfers
from both accounts:
– Credit cards
– Cell phone accounts
The Investigation
• Subpoena for Brink’s
personal bank records
– ATM cash withdrawals
– Same bar/video poker
locations
The Investigation
• Subpoena for Brink’s
credit report
– Numerous credit card
debts
The Investigation
• Brink is twice-divorced
• Last divorce in 2006
• DEI records show
increase in ATM
withdrawals and other
payments 2006-2007
The Investigation
• University Small
Business Association
• Safe and Sound
• Eugene in Common
Brink volunteers with these
organizations handling the
finances!
The Investigation
Safe and Sound – a Lane County program funded by grants to
aid at-risk youth.
• Received an Annenberg Foundation
grant for $100,000 in November
2007
• Funds moved in multiple
transactions to DEI bank accounts
• Brink restores these funds to
S&S with a $90,000 personal
check!
The Investigation
• University Small
Business Association
– No missing funds
– Money moving back and
forth through DEI
– Direct relationship with
DEI through Mall Guides
• Eugene in Common
– Operation transferred to
Saturday market
– Brink closed bank
account
– Turned over check and
incomplete box of
records to new
managers
The Investigation
• Interviews with DEI employees
– Bounced paychecks
– Brink asked several to hold paychecks a few days
– Brink sometimes paid bounced check penalties for employees out of his pocket
– DEI always short on money
The Investigation
• Interviews with DEI
board members past
and present
– Relied on Brink’s
statements on DEI
finances
– Repeated requests for
additional documents
– Lack of knowledge about
DEI financial details
Financial Losses
• Approximately
$150,000 in losses from
2005 – 2008
• Statute of limitations
reduces the loss figure
to about $85,000
Grand Jury Indictment
• July 2010 – Brink
indicted for multiple
thefts
• Warrant isn’t entered
until January 2011
Brink in New Hampshire
• Ex-wife identifies
woman in New
Hampshire
• Public records check
shows Brink at the
same address
Brink in New Hampshire Area
• August 2008
Brink in New Hampshire Area
Brink in New Hampshire
• Yahoo!
• Brink responds to electronic
communications!
Brink in New Hampshire
• Brink is advised of the warrant
• Says he will drive to Eugene in early January 2011
Brink in Jail
• January 19, 2011
– Brink turns him self in to
the Lane County Jail
In the Media (again)
In the Media (again)
Negotiations
• Prison sentence?
• Probation?
• Restitution?
• What are we going to
do with Mr. Brink?
Sentencing
• 120 months prison
• Downward departure to 5 years of probation
• Approximately $85,000 restitution
• $30,000 at time of sentencing
• Probation violation means 120 month sentence imposed
Final News Story
The Players
• DEI Board
• DEI Mall Guides
• Chamber of Commerce
• Safe and Sound
program / Lane County
• University Small
Business Association
• Eugene in Common
• City of Eugene
• Wells Fargo Bank
• Bank of America
• Equifax
• Brink’s 2nd Ex-wife
• Lane County District
Attorney’s Office
• Lane County Jail
• Cell phone carriers,
credit card issuers, etc.
Detective Steve Williams CFCE
Eugene Police Department
Financial Crimes Unit / Arson Unit
777 Pearl Street Room 107
Eugene OR 97401
541-682-2682 office
541-682-8337 fax
Email: [email protected]