United States Attorney
Eastern District of Arkansas
Tuesday, June 5, 2012
Former President of Arkansas Transportation Company Sentenced to 24 Months for Embezzlment of Funds from Employee Pension Plan
LITTLE ROCK, Ark. – Leander J. Muncy III, 44, of North Little Rock, Ark., was sentenced today in the Eastern District of Arkansas by the U.S. District Court Judge Susan Webber Wright to 24 months in prison, three years supervised release, restitution in the amount of $268,719.80 and $100 special assessment, announced Christopher R. Thyer, U.S. Attorney for the Eastern District of Arkansas, and Brian Marr, Special Agent in Charge of the Little Rock Field Office of the U.S. Secret Service. Muncy was ordered to report to the U.S. Bureau of Prisons to begin his sentence on July 16, 2012. This sentencing follows Muncy’s Feb. 2, 2012, guilty plea to one count of theft and embezzlement from an employee pension benefit plan.
According to statements made at Muncy’s change of plea, from September 2004 until August 2010, Muncy held various positions, including president and vice president, at Vouk Transportation Inc., a transportation broker located in North Little Rock. Throughout that entire time period, Muncy served as trustee over the company's employee profit sharing plan.
While he was trustee, Muncy embezzled $270,707.94 from the plan, $224,500 of which was in the form of 19 checks which he either wrote to himself or B&E Transport, a company he had formed. In addition to those checks, Muncy also diverted loan payments that were intended for the profit sharing plan and deposited those into his personal account or cashed them for his use. The total amount of those diversions were $46,207.94.
“Financial fraud might seem to the perpetrator to be a crime that is hidden from exposure, but eventually, the books won’t add-up and the crime is revealed,” said U.S. Attorney Thyer. “The employees of Vouk Transportation trusted Muncy to run the Employee Profit Sharing Plan for their benefit; not for his own. Today’s sentence should serve as an example of the consequences one will pay when people abuse the trust that has been placed in them and embezzle funds that were entrusted to their care.”
Thyer continued by saying, “You can learn more about how to protect yourself against financial fraud at www.stopfraud.gov. Take the time to review your financial statements and check your credit report annually for free by going to www.annualcreditreport.com.”
“The Secret Service has always been committed to safeguarding the nation's financial systems and has responded to increasing embezzlement investigations through-out the state. The growing level of sophistication that these criminals are employing requires greater collaboration among law enforcement and its public and private sector partners. The successful prosecution of the defendant by the United States Attorney’s office regarding an investigation that was brought to this office by the North Little Rock Police Department is a testament to the efforts of all involved. It was truly unfortunate that the defendant in this case, through his deception, took money from the corporation’s profit sharing plan. It seems so simple to guard against thieves that attack you from outside of your company, but the ones that attack you from within are a different matter,” said Special Agent in Charge Marr.
The investigation was conducted by the U.S. Secret Service in conjunction with the North Little Rock Police Department. It is being prosecuted by Assistant U.S. Attorney Karen Whatley.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.