A Holland, Mich., man pleaded guilty to falsifying receiving reports at Louis Padnos Iron & Metal Co. leading to an embezzlement of up to $160,000, company officials say.
Joseph Zuniga told Ottawa Circuit Court Judge Calvin Bosman that he defrauded the Holland recycling company by adding weight to incoming materials and receiving a cut of the profit made by an accomplice.
Zuniga admitted that he and Nicholas Alvarado conspired to bilk Padnos after Alvarado suggested the scam. Alvarado pleaded guilty earlier this year to the same charge as Zuniga and was sentenced to 120 days in jail and to pay restitution of about $20,000.
In the scheme, police say Alvarado would bring in recyclable materials and Zuniga, who was a supervisor and 23-year employee of Padnos, would top off the load with nonexistent extra weight.
Zuniga said in court that he only stole around $1,000, but a lawsuit filed last year by the company said the amount could climb as high as $160,000.
Zuniga was originally charged by Holland police and Ottawa prosecutors with a 10-year felony for embezzling more than $20,000, but entered the plea to stealing $1,000 to $20,000, a five-year charge. Zuniga will be sentenced Dec. 10.
The company's lawsuit against Zuniga alleged that the embezzlement began in 1998 and continued for a two-year period before recycling officials caught on to the scam during a routine audit. Zuniga was fired last April.
A detailed 51-page exhibit lists the amount of and price paid for metals such as aluminum siding, copper, brass and scrap lead for which checks were issued.
"(Zuniga) together with accomplices began a campaign of fraud and embezzlement from Padnos," the suit states. "As the result of Zuniga's wrongful conduct and that of his accomplices, Padnos suffered at least $166,189."
In August, Judge Edward Post ruled in favor of Padnos in the civil claim because Zuniga failed to respond to the allegations. A default judgment of $500,000 was entered against him.
Bosman, who said he would not accept a no-contest plea that Zuniga tried to tender to avoid liability from the civil suit, will order a restitution amount at a later hearing. Holland Sentinel