A former employee of 195 Lumber, Killeen, Texas, has been accused of stealing more than $2 million from the company, the Killeen Daily Herald reports. Norman Kott worked for 195 Lumber for 19 years as its chief financial officer, where he was in charge of both accounts receivable and payable. He began embezzling from the company in 2009, though his actions were not discovered until 2014. The Herald reports how Kott's embezzlement was discovered:
The discrepancies in accounts were noticed after an accountant hired by 195 Lumber uncovered large amounts of money missing and covered up in the computer system. According to this accountant’s report, Kott took an outside business’ check and credited that company’s personal account with the money. He would then place the check in the company’s “point of sale” account, and withdraw the same amount of money to balance the previous amount. He also owned outside businesses that bought goods from 195 Lumber, then wrote goods off as being paid while at work, even though neither he, nor anyone with his company, ever penned a check.
Kott signed one plea deal "that waived his protection against self-incrimination and pleaded guilty to theft in an amount of $200,000 or more." His second plea deal, which is from a separate criminal case, is about the embezzlement. He will also owe $1 million in money and property as restitution. His sentencing is scheduled for Nov. 4.