A 43-year-old man from Laguna Niguel, California, has been indicted by a Seattle grand jury on six counts of wire fraud, according to Acting U.S. Attorney Teal Luthy Miller. Paul Joseph Welch is accused of devising a scheme to steal nearly $1 million from his employer, Algas-SDI, an energy manufacturing company located in Kent, Washington. The arraignment is scheduled for April 17, 2025.
Welch was employed at Algas-SDI from 2011 to 2024 and promoted to Information Technology Manager in 2018. The indictment alleges that his fraudulent activities began in 2017. Welch reportedly made unauthorized purchases through the company’s Amazon account, which amounted to at least $43,000 by 2023. From 2019, he allegedly used his company credit card for personal buys at several retailers, accumulating an additional $60,000 in unauthorized purchases.
The alleged fraudulent activities intensified in January 2021. Welch purportedly initiated payments from Algas-SDI’s credit cards to accounts he controlled, posing them as payments to a phony computer services entity. Welch fabricated email addresses and payment processor accounts using a name similar to a legitimate Washington State computer services company. These transactions reportedly funneled approximately $879,175 into Welch's accounts between 2021 and 2024.
Algas-SDI attempted to authenticate the legitimacy of these activities several times. Welch is accused of providing misleading information and false invoices, making it appear as though the charges were valid. In 2023, when questioned about peculiar charges, Welch claimed they were accidental and promised to reimburse the company, which he did not. Algas-SDI terminated Welch’s employment after confronting him about the alleged fraudulent vendor charges in January 2024.
Between 2017 and 2024, Welch is alleged to have conducted over 250 fraudulent transactions with the vendor he managed, including unauthorized purchases with the company credit card and fraudulent Amazon purchases. In total, Welch’s activities reportedly cost Algas-SDI around $982,520, including various transaction fees.
Wire fraud charges carry a potential penalty of up to 20 years imprisonment and a fine of $250,000. The charges against Welch remain allegations until proven guilty in court. The FBI is investigating the case, with prosecution led by Assistant United States Attorney Dane A. Westermeyer.