A Westfield man accused of operating a years-long scheme to defraud hundreds of thousands of dollars from the ophthalmology practice where he worked has been sentenced to 30 months in prison, federal authorities announced Thursday.
Joshua D. Millspaugh, 42, recently pleaded guilty before U.S. District Court for the Southern District of Indiana Judge James P. Hanlon to charges of wire fraud for stealing $270,000 from his employer over a five-year period.
Millspaugh worked as the practice administrator for Whitson Vision, P.C., with responsibility for payroll processing, purchasing and bill payment. He was paid an annual salary of more than $100,000, but began using his access to company accounts to divert money to himself less than a year after his start date.
Federal authorities discovered Millspaugh stole company money through more than 500 separate transactions to make personal purchases, pay personal bills, and send extra payroll checks to his bank account.
Millspaugh covered his tracks by creating false entries in the company’s books and lied when asked about the expenditures.
During sentencing,Hanlon found that Millspaugh had abused a position of trust within Whitson Vision to perpetrate his crime.
Dr. William Whitson, owner and director of Whitson Vision, advised the court that his business suffered financial damages, long-term credit and banking problems, tainted reputation, and devastating morale problems among company employees.
“Fraud on a small business impacts every area of that business,” said U.S. Attorney Zachary A. Myers. “It also breeds mistrust, especially if the fraud is perpetrated by a trusted employee. Mr. Millspaugh exploited his position of trust for purely personal gain, and he is now being held accountable for his actions.”
The Indianapolis office of the U.S. Postal Inspection Service conducted the investigation and U.S. Attorney James M. Warden prosecuted the case.
Millspaugh is ordered to pay $270,000 in restitution and will be federally supervised for three years following his release from prison.