A federal grand jury in the Western District of Tennessee has indicted Catherine Corrine Daly, a 54-year-old resident of Memphis, for allegedly embezzling over $1.2 million from a local law firm where she was employed as an office manager. The announcement was made by Reagan Fondren, Acting United States Attorney for the Western District of Tennessee.
The indictment details that Daly had access to the firm's bank accounts, including its operating account at a Memphis branch of SunTrust Bank. This account was intended for paying the firm's operating expenses.
Daly reportedly held two American Express charge accounts with five cards issued through these accounts to herself and two relatives. These cards were used for personal purchases such as clothing, shoes, designer handbags, jewelry, home furnishings, dining expenses, salon services, and travel costs.
The indictment alleges that Daly used funds from the firm's operating account to settle her personal AmEx charges from June 2019 until October 2021. During this period, she is accused of embezzling $1,289,085 by making direct payments from the law firm's account to cover her personal expenses.
Daly faces six counts under Title 18 of the United States Code Section 2314. This statute criminalizes transferring money across state lines when it has been "stolen, converted or taken by fraud." Each count carries a potential penalty of up to 10 years in prison and a fine up to $250,000 or both. Additionally, there could be a court-supervised release term not exceeding three years.
The case is being investigated by the United States Secret Service and prosecuted by Assistant United States Attorney Joe Murphy for the Western District of Tennessee.
It is important to note that an indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.
For further information regarding this case or other updates from the U.S. Attorney’s Office for the Western District of Tennessee, media inquiries can be directed to USATNW.Media@usdoj.gov. Updates are also available on their Facebook page or on X at @WDTNNews.