A former executive of a San Diego-based contracting firm pleaded guilty on Tuesday to embezzling more than $835,000 over a period of eight years.
According to a news release by the U.S. Attorney’s office, Stuart Teshima served as the Chief Financial Officer for a local company that provides services such as ship building and repair, nuclear operations support and information technology to the U.S. Department of Defense and other government agencies.
On Tuesday, Teshima admitted that he began the fraud in 2008 until he left the company in August 2015.
Over the course of eight years, Teshima said he used money from the company to pay for personal expenses—including personal travel, gifts for family members, lavish dinners and at one point, his personal income tax bill. During the eight years, Teshima served as a Vice President, Senior Vice President and CFO of the company.
Teshima said he would replace his personal charges on account statements with fake business expenditures and then submit the invoices for reimbursement.
"Corporate insiders and officers owe a special duty of honesty to their employer and its owners. By misusing his senior executive positions for his own personal gain, former CFO Teshima inflicted serious harm on his employer, his fellow employees and defense contracting community," said U.S. Attorney Laura E. Duffy in a statement.
Teshima may face up to 20 years behind bars, a $250,000 fine, $100 special assessment and pay a restitution of $825,341.
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His sentencing is scheduled for December 19.
