DELPHOS — The former owner of a Delphos payroll company pleaded guilty to three of seven federal bank fraud charges recently.
Jennifer Edelbrock, 51, of Kalida, pleaded guilty to the three counts on Oct. 4. She operated Edelbrock Enterprises LLC, including Edelbrock-Reitz LLC at 945 E. Fifth St., Delphos. The company handled payroll and accounting services for companies in the region, including issuing checks and withholding federal and state taxes and making quarterly payments from money provided by the clients.
She faces sentencing Jan. 28 in Judge Jack Zouhary’s courtroom in the Northern District of Ohio in Toledo.
Edelbrock pleaded to transferring $2,000 on April 10, 2014, from her payroll account to All Seasons Lawn and Recreation LLC, which was owned by her husband. She also admitted to moving $1,000 from the payroll account on April 18 and May 28, sending money to a personal account.
Prosecutors dismissed the remaining four charges in exchange for her pleas.
The original indictment accused Edelbrock of stealing $914,170.94 from her clients over time, according to the indictment.
Authorities raided Edelbrock’s business first on May 19, 2015, as part of a local investigation into financial crimes.
In November 2016, Edelbrock received three years probation in Allen County after stealing $19,176 from the Spencerville Veterans of Foreign Wars post. In Putnam County, she received 40 days in jail and three years probation for stealing $17,250 from the Kalida Band Boosters.
In the federal case, the indictment said clients expected her to hold money in trust to pay her clients’ payroll expenses, including federal, state and local tax obligations. She allegedly concealed the late payment of taxes, as delinquency notices and penalties only went to her.
She also allegedly manipulated client payroll obligations, adding $25 to $90 per pay period to the employer responsibility for taxes above what employers actually owed, according to the indictment. The overcharged money went toward her own personal enrichment, according to the indictment.
The indictment said Edelbrock used the money to pay personally held credit card and investment accounts and “to meet Edelbrock’s personally-held debt obligations.”