Executive Admits to Stealing $860,000 from Coastal Orthopedics

David Brooks, 44, of Ohio plead guilty to mail fraud and faces up to 20 years in federal prison, according to a press release from the U.S. Attorney’s Office of the Middle District of Florida. According to a plea agreement reached in October 2011, Brooks was hired as a Financial Accounting Manager at Costal Orthopedics and Sports Medicine of Southwest Florida located in Bradenton, Florida. During Brooks’ employment at Costal he was convicted of theft, money laundering, and other fraud-related offenses in Ohio. Once Coastal learned of the Ohio charges in June 2013, Coastal fired Brooks and began a review of its books and records.

Coastal found that between January 2012 and June 19, 2013 Brooks has used company accounts to purchase more than $700,000 in American Express gift cards, which he used for personal expenses, including legal fees associated with his Ohio criminal case. In addition, Brooks diverted payroll funds to himself above his normal salary. In order to cover his wrong doing, Brooks altered the company’s books and records.

According to the U.S. Attorney’s Office, Brooks used ten different gift cards to purchase a 2012 Jeep Liberty. The gift cards were shipped directly to Brooks at Coastal on March 15, 2012, and four days later he used them to purchase the vehicle.

In total, Brooks defrauded Costal of $858,883 and of this total he used $702,091.60 to purchase the gift cards for his own personal use and the remaining amount was diverted to his salary.

Click here for press release.