Elkhorn woman sentenced to five years for embezzlement
ELKHORN, Neb. -- It was announced that an Elkhorn woman was sentenced Friday to a five-year prison term following her conviction for two counts of wire fraud in district court.
After she completes her prison sentence, 59-year-old Kimberley Brummett will serve three years on supervised release.
It was reported that Brummett was a financial controller for Taste Traditions, a manufacturer of food products for organizations such as schools and retail. Both before and after it was acquired by Wald Family Foods in 2012, Brummett worked out of a Taste Traditions plant in Omaha, Nebraska.
The US Attorney's Office said that Wald Family Foods is owned by TOBA, Inc. After the acquisition, Brummett’s new role entailed her working as the controller for three manufacturing facilities owned by Wald Family Foods, including the Taste Traditions facility located in Omaha.
It was reported that Brummett continued working for Taste Traditions until October 10, 2019, when her position was absorbed by TOBA, Inc.
Officials said that both before and after the acquisition, Brummett was engaged in a scheme to defraud Taste Traditions.
In a court document, it was reported that Brummett added another level to the defrauding scheme - GIX Logistics, Inc.
GIX Logistics, Inc. is a business located in Grand Island that coordinates trucking services for companies. They provided services to TOBA, Inc. and Taste Traditions. Brummett was not associated with and has not worked for GIX Logistics, Inc.
Brummett opened an account with Centris Federal Credit Union in Omaha under her name and doing business as “GIX Logistics,” but omitted the “Inc.” that is used by the real “GIX Logistics.”
In the forms Brummett completed when she opened the account, the business was listed as a sole proprietorship owned by Brummett.
Taste Traditions and Wald Family Foods did not enter into any contract to obtain products or services from the GIX Logistics entity created by Brummett and none were provided. Between 2013 and 2019, Brummett submitted numerous false invoices under the “GIX Logistics” name.
Taste Traditions would then issue checks to pay the phony invoices and Brummett deposited those checks into the fake GIX Logistics account she created.
Between 2013 and the end of her employment in 2019, Taste Traditions paid out a total of $1,666,128.13 to Brummett’s fictitious company.
As part of her sentence, Judge John Gerrard ordered Brummett to pay restitution in that amount.
According to court documents, during the sentencing hearing, Judge Gerrard discussed how Congress and the United States Sentencing Commission have expressed a clear intent to punish white-collar offenders with prison sentences.
This case was investigated by the Federal Bureau of Investigation and the Nebraska State Patrol.