Former IT manager accused in elaborate embezzlement scheme

A Winchester man is in custody in connection with the reported embezzlement of nearly $1 million from the Harrisonburg-Rockingham Community Services Board.

Andrew Hahn, 36, was employed as the information technology manager at the HRCSB. Management was alerted by other employees to minor discrepancies and missing equipment, which triggered an internal investigation and an external financial audit.

Hahn was terminated after the start of the investigation, which was initiated in October, according to Harrisonburg Police.

As IT manager, Hahn had control and oversight of requests for proposal for IT-related needs.

Hahn is accused of creating a shell company, submitting an RFP, and awarding the contract to himself through the shell company.

The activity reportedly took place between 2019 and 2021, according to police.

According to investigators, Hahn used the shell company to significantly up-charge products that he provided and charged for products that were never delivered to HRCSB.

A large part of the embezzled funds apparently went to support his lavish lifestyle habits as well as personal financial investments.

On Wednesday, detectives from HPD’s Major Crimes Unit and the Winchester Police Department executed several search warrants in Winchester. Detectives recovered financial records and electronic devices with suspected digital evidence, and seized two vehicles, which were reportedly purchased using embezzled funds.

Hahn, according to investigators, used his position to his advantage and went to great lengths to conceal his actions from the HRCSB. The investigation revealed that the employer followed common and standard business practices, including internal and external audits, but Hahn found a way to circumvent these safeguards.

The HRCSB has fully cooperated with HPD’s investigation and has added additional controls to prevent similar actions in the future.

Hahn was taken into custody without incident and charged with felony money laundering and five counts of felony embezzlement. Since his arrest in Winchester, Hahn has been transferred to the Rockingham-Harrisonburg Regional Jail, where he is being held without bond.

HPD received investigative support from the Office of the Attorney General, Homeland Security Investigations, Winchester Police Department and the Frederick County Sheriff’s Office.

This investigation is ongoing, and additional charges are being considered. If have any further information to assist in the investigation, call Detective Matthias at 540-437-2669 or email him at [email protected].

Anonymous tips related to this incident, or any crime can be sent to Crime Solvers at (540) 574-5050 or by texting “HPD” plus their tip to CRIMES (274637).