Former employee accused of defrauding millions from Williams-Sonoma

article

CORTE MADERA, CALIFORNIA – MAY 25: A customer leaves a Williams-Sonoma store on May 25, 2022 in Corte Madera, California. San Francisco-based home furnishings retailer Williams-Sonoma reported better-than-expected first-quarter earnings, with profits o

SAN FRANCISCO – A former employee of Williams-Sonoma, Inc. was charged with wire fraud and money laundering for allegedly swindling $10 million from the retail giant, the U.S. Attorney’s Office for the Northern District of California said.

Prosecutors said a federal grand jury in San Francisco on Wednesday indicted Ben Thomas III, 48, on eight counts of wire fraud and four counts of money laundering.

According to the indictment, Thomas allegedly registered a fake temporary employment firm, Empire Logistics Services. From 2016 to 2023, Thomas was the general manager of WSI’s center and distribution facility in Braselton, Georgia, where he had the authority to hire temporary staffing providers and approve payments of up to $50,000 to providers.

“As CEO of WSI, Thomas was prohibited from conducting his own transactions and billing WSI for work from a company affiliated with him. The indictment alleges that Thomas concealed from WSI that he owned and controlled Empire and that he invoiced WSI. through Empire for work never done,” the U.S. attorney’s office said.

Prosecutors alleged that between 2017 and 2023, he submitted hundreds of fraudulent Empire invoices to WSI, each for less than Thomas’ $50,000 approval limit. He then approved a total of 335 WSI payments over six years, totaling more than $10 million in a bank account he managed.

According to the US Attorney’s office, Thomas is scheduled to make his initial appearance in federal court in San Francisco on October 1. If convicted, he faces a maximum sentence of 20 years in prison, a $250,000 fine and restitution for each transfer charge. fraud and 10 years in prison, a $250,000 fine and restitution on each count of money laundering.