SALISBURY — A local company says it has been informed by the state it is paying unemployment benefits to a woman fired and subsequently arrested for embezzling nearly a half-million dollars from the business.
In early February, White Magic, which manufactures professional cleaning systems on Main Street in Salisbury, was informed former chief financial officer Victoria Jordan was receiving unemployment benefits from the company.
"We received a form noting she has collected two checks, each for $629," said Mike Gouin, who works in sales for the company. "I didn't think people could collect if they were fired and pleaded guilty to charges."
Federal authorities charged Jordan, 32, with 15 counts of wire fraud, saying she inflated her $52,000 salary and stole $450,000 from White Magic over a four-year period. She pleaded guilty in December to the charges and will return to federal court on April 20 for sentencing.
Jordan faces up to 20 years in jail and a $250,000 fine for each count. Jordan, also known as "Victoria Lake," was originally scheduled for sentencing this week.
White Magic, which manufactures professional carpet cleaning systems, continues to rebound from the financial loss, said Gouin, who was speaking for Paul Richardson, the founder and owner of the company, who runs the business from out of state. The company was forced to lay off 25 employees because it was left in severe debt.
After being fired from White Magic, Jordan took a job at Ipswich Shellfish. Once news circulated she was being charged in an embezzlement scheme, she was fired from that job, Gouin said.
"Apparently, they let her go, and unemployment said she couldn't receive unemployment from them, so they went back to her previous employer," Gouin said. "We called the office of workforce development, who claims they sent us a letter with the opportunity to dispute the claim."
Alison Harris, communications director for the Executive Office of Labor and Workforce Development, said yesterday her office could not comment based on confidentiality laws regarding unemployment benefits.
While unsure that letter was received, Gouin said the company sent a certified letter to the state explaining the situation and providing the docket number for the case.
"People lost their jobs because of this woman who is going to go to jail, and while she's waiting, she's collecting unemployment?" Gouin said. "It just seems wrong to me."
Jordan inflated her salary as chief financial officer of White Magic to embezzle from the company, according to court documents. She also added her husband to the payroll despite the fact he was not an employee of the company, cashed checks drawn on company accounts, made unauthorized purchases of personal items with company credit cards and used company funds without permission to pay for a life insurance policy, personal cell phones, individual retirement account deposits and fraudulent mileage reimbursements.
Federal authorities allege Jordan paid herself $83,850 in 2004, $97,194, in 2005, $126,000 in 2006, $151,941 in 2007, and in the first 10 months of 2008, took home $207,000. After placing her husband on the payroll, she collected another $38,000. Her husband has not been charged.
Federal wire fraud charges came into play because Jordan obtained her salary through Automated Clearing House transactions that funneled through a Minnesota office, according to court documents.
Court documents indicate federal authorities want Jordan to give back any and all money and property taken from White Magic.
Meanwhile, Gouin says the company is getting back to what they call, "pre-Victoria" numbers and is hoping to hire back some of the positions laid off.
"It is what it is," Gouin said. "But she shouldn't be collecting unemployment."
