A man from Laguna Niguel, California, has admitted to committing wire fraud to defraud his employer of nearly $1 million. The U.S. District Court in Seattle heard that 43-year-old Paul Joseph Welch, previously the IT manager at Algas-SDI, a Kent, Washington-based energy manufacturing firm, engaged in multiple fraudulent activities from 2017 to 2024. Acting U.S. Attorney Teal Luthy Miller announced that Welch's sentencing is scheduled for August 21, 2025, by U.S. District Judge Jamal N. Whitehead.
Court records reveal that Welch joined Algas-SDI in 2011 and was promoted to Information Technology Manager in 2018. As early as 2017, Welch exploited the company's Amazon business account for unauthorized personal acquisitions, amassing purchases worth at least $43,000 by 2023, focusing mainly on electronics. Additionally, from 2019 to 2024, Welch used his company credit card for personal expenditures from retailers such as Apple, Alaska Airlines, Instacart, and BestBuy, accumulating at least an additional $60,000.
The fraudulent activity escalated in January 2021 when Welch impersonated a computer services company to redirect payments to his accounts. Welch reportedly created email addresses and payment processor accounts resembling a legitimate Washington State-based computer service provider. Utilizing company credit cards, Welch systematically transferred roughly $879,175 from company accounts to his control by masquerading these transactions as IT services.
Despite Algas-SDI's efforts to authenticate Welch's transactions and requests for invoice substantiation, Welch persisted in misrepresenting his dealings, supplying fabricated invoices from the supposed vendor. The deception unraveled when Algas-SDI clarified in January 2024, leading to Welch's immediate termination upon confrontation about the suspicious charges.
The wire fraud charge reflects the breadth of Welch's deception, encapsulating instances where Welch sent falsified invoices or statements purporting to be from a legitimate vendor.
Over the span of his fraudulent activities, Welch executed at least 250 deceitful vendor charges, 140 unauthorized retailer purchases using the company credit card, and 100 fraudulent transactions via the company’s Amazon account. Consequently, Algas-SDI incurred total losses exceeding $982,520, factoring in associated transaction fees.
Welch has committed to full restitution to the company. Wire fraud carries a maximum sentence of 20 years in prison along with a $250,000 fine. Prosecutors have limited their recommendation to no more than 27 months in prison. Judge Whitehead will determine Welch's sentence after evaluating sentencing guidelines and other factors.
The FBI led the investigation, with prosecution handled by Assistant United States Attorney Dane A. Westermeyer.