A federal judge today sentenced Samuel Sacco, of Barrington, to 33 months in federal prison for stealing more than $700,000 from his employer, Spectra Systems Corporation. Sacco, who was Spectra Systems’ Chief Financial Officer, has admitted that he used a company charge account and company checks to pay for personal expenses, and that he ordered unauthorized annual bonuses for himself.

United States Attorney Robert Clark Corrente announced the sentence, which Chief U.S. District Court Judge Mary M. Lisi imposed today in U.S. District Court, Providence.

Spectra Systems is a Rhode Island corporation that develops marking and authentication applications, including currency authentication techniques used by the Federal Reserve. As the company’s Chief Financial Officer between 2000 and 2006, Sacco was in charge of payroll and accounts payable.

Sacco, 52, pleaded guilty in April to one count each of mail fraud and wire fraud. At the plea hearing, Assistant U.S. Attorney Lee H. Vilker said the government could prove that, while he was Spectra’s CFO, Sacco charged approximately $394,515 in personal expenses to a corporate charge account. He also directed the corporate controller to pay for about $52,525 of Sacco’s personal expenses with corporate checks.

The personal expenses that Sacco charged to the company included family vacations to Florida, New Hampshire, and Nantucket, gift cards, jewelry, insurance premiums, country club fees, liquor products, and fees for a sporting club.

Sacco also falsely informed the company controller that the Compensation Committee had authorized annual bonuses. According to corporate directors, no bonuses other than an initial signing bonus were ever authorized for Sacco, but he directed a total of $266,325 in bonuses be paid to himself between 2002 and 2005.

The thefts addressed by the fraud charges totaled $713,366. Because he has already made partial restitution, Judge Lisi ordered Sacco to make restitution of approximately $640,000.

At the sentencing, Assistant U.S. Attorney Vilker noted a prior incident, in which Sacco admitted inappropriately diverting $42,820 in company funds to his personal use while employed by a company in Marlborough, Massachusetts. Judge Lisi took that incident into account in imposing sentence.

Judge Lisi ordered Sacco to report to prison on August 17.

The Federal Bureau of Investigation conducted the criminal investigation. Assistant U.S. Attorney Vilker prosecuted the case for the government.

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Contact: 401-709-5032 Thomas.connell@usdoj.gov

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