Newtown Woman Sentenced to Four Years in Federal Prison for Embezzling More Than $1.75 Million

The United States Attorney for the District of Connecticut today announced that Joanne Osmolik, 52, of Newtown, was sentenced today by United States District Judge Stefan R. Underhill in Bridgeport to 48 months of imprisonment, followed by three years of supervised release, for embezzling more than $1.75 million from her employer.

According to court documents and statements made in court, Osmolik was employed at Latex International in Shelton, serving most recently as the company’s vice president for human resources. From approximately October 2008 to November 2010, Osmolik and Kevin Coleman, who at the time was Latex International’s chief executive officer, collectively embezzled approximately $3.5 million in corporate funds by charging substantial personal expenditures on corporate credit cards and submitting fraudulent expense reports. Coleman also instructed Osmolik to destroy company records so as to conceal the fraudulent nature of his purchases from others at Latex International. Osmolik carried out those instructions and destroyed the records.

Through this scheme, Osmolik charged more than $1 million in personal expenses on the corporate American Express card that was assigned to her and received an additional $531,655 in fraudulent expense report payments from the company. In total, Osmolik embezzled approximately $1,777,791 from Latex International.

In sentencing Osmolik above the advisory sentencing guidelines range of 33 to 41 months of imprisonment, Judge Underhill noted the extraordinary impact this embezzlement scheme has had on Latex International. In addressing the court, the current chief executive officer of Latex International stated that financial constraints due to the theft has directly caused 43 employees to lose their jobs.

Judge Underhill ordered Osmolik to pay restitution of $1,777,791 and an additional $450,000, jointly and severally with Coleman, to compensate Latex International for legal fees and other costs it incurred as a result of this crime. As part of case, Osmolik has agreed to forfeit her interest in three residential properties in Vermont, six motorcycles, an all-terrain vehicle, four snowmobiles, vehicle trailers, jewelry, and numerous appliances and other home furnishing items.

On December 20, 2011, Osmolik pleaded guilty to one count of wire fraud. On February 27, 2012, Coleman pleaded guilty to one count of wire fraud and one count of tax evasion stemming from his embezzlement of an additional approximately $1.7 million and his failure to file federal tax returns for four years.

At the conclusion of today’s sentencing, Osmolik, who had been released on bond since the date of her guilty plea, was remanded to the custody of the U.S. Marshals Service to begin service of her sentence.

This matter has been investigated by the Federal Bureau of Investigation, with the assistance of Latex International. The case is being prosecuted by Assistant U.S. Attorney Eric J. Glover.