A Virginia Beach woman was sentenced Thursday to four years in prison for stealing more than $1 million from a client and for fraud related to an economic-disaster recovery loan she received during the COVID pandemic.
Maria Gene Reich, 45, was president of ASOC. Inc., also known as On Call Accountants, a Virginia Beach business which offered bookkeeping, accounting and payroll services to small business clients.
According to court documents, beginning in February 2012, Reich performed bookkeeping for a family-owned company that manufactures condiments. Reich would prepare checks and schedule electronic payments to pay the company’s bills.
For most of the period during which she performed services for the company, Reich did not have signature authority over any of the company’s financial accounts but possessed a stamp bearing the signature of the owner which she used to draft checks for business expenses. Reich also had online access to financial accounts, which enabled her to view account balances, transfer funds and initiate electronic payments as needed.
Based on the agreement between Reich and the company, the maximum total compensation she should have received for services rendered to the company between January 2015 and December 2018 was $98,400.
A financial analysis of activity during that time period revealed that Reich’s OCA business account received 270 payments totaling $596,418 from the accounts including 138 checks and 132 electronic payments. Reich also used the company’s money to pay off her credit cards which she used for numerous personal expenses.
The financial analysis showed that Reich made 366 payments totaling approximately $629,265 to her personal and business credit card accounts using funds from the victim’s business bank accounts. Reich used the victim’s money to pay for personal expenses such as dining, travel, entertainment and retail purchases.
In total, Reich stole approximately $1,132,693 from the company.
COVID EIDL fraud
In March 2020, Reich applied to the Small Business Administration for a $150,000 Economic Injury Disaster Loan on behalf of her own business and requested a $150,000 loan.
The purpose of the EIDL program was to enable small businesses to meet financial obligations and operating expenses in light of the coronavirus pandemic. In the EIDL application, Reich certified that none of the EIDL funds would be used for non-business expenses. In May 2020, the SBA funded the loan.
In April 2021, Reich applied for a modification of the EIDL loan to increase the amount to $500,000. In July 2021, the SBA approved the modification and funded the loan for an additional $350,000.
On Aug. 3, 2021, a wire deposit from the SBA for $350,000 was made to OCA’s bank account, and Reich immediately transferred $150,000 to her personal banking account.
On Sept. 27, 2021, Reich withdrew approximately $93,416 from her savings account and used the money for a downpayment on the purchase of a home in Virginia Beach, where Reich and her family continue to reside.
In addition to the downpayment for the residence, Reich used the EIDL funds from that transfer to put money into her minor children’s bank accounts and to make payments for her mortgages, credit cards, personal loan and life insurance policy.
Of the remaining EIDL funds from the $350,000 EIDL loan, Reich used them to pay for personal, household and family expenses, payments to her credit card and PayPal accounts, home improvement costs and automobile expenses, and dining, grocery and entertainment expenses.
In total, Reich illegally spent $249,102 of the EIDL funds she received.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes.
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Crystal Graham
