A former controller of a Shelton, Washington outdoor equipment company has been sentenced to 12 months and one day in prison for wire fraud. Jesse Arden Sherman, 63, from Elma, Washington, embezzled more than $665,000 from Sims Vibration Laboratory Inc. between 2012 and 2018. He also failed to pay taxes on the stolen funds, resulting in a tax debt of $202,196.
Acting U.S. Attorney Teal Luthy Miller announced the sentencing. At the hearing, U.S. District Judge Tiffany M. Cartwright highlighted the losses suffered by the victim company and its employees due to Sherman's actions.
Sherman began working for Sims Vibration Laboratory Inc. in 2008 and had full access to the company's accounting systems as a controller. He abused this trust starting in 2012 by creating false business records and depositing company checks into his personal accounts under various schemes.
Prosecutors sought an 18-month sentence, emphasizing Sherman's betrayal of trust with each fraudulent transaction. They stated: “Despite personal and professional privileges, Sherman elected to create a multi-faceted fraud scheme... Although he claims his gambling drove his behaviors... he instead re-committed to his scheme over and over again.”
Sherman agreed to repay $665,840 to the company and $202,196 to the IRS. The investigation was conducted by the IRS Criminal Investigation (IRS-CI), FBI, and Mason County Sheriff’s Office. Assistant United States Attorney Brian Wynne prosecuted the case.