Former Lilbourn woman is guilty

ST. LOUIS - A former Lilbourn resident pled guilty Thursday in federal court on charges of negotiating fraudulent checks.

Andrea Buchanan, 46, of Kansas City and formerly of Lilbourn, appeared before U.S. District Judge E. Richard Webber in federal court. She pled guilty to one felony count of passing forged securities and one felony count of making false statements on tax returns.

According to facts filed with the court, Buchanan was employed from 1978 to February 2002 in the payroll office at Plastene Supply Company (PSC) in Portageville, which is a division of Seigel-Roberts Inc. As a payroll clerk, she was responsible for processing and issuing Plastene's weekly payroll. From 1998 through 2001, Buchanan randomly created more than 1,200 fraudulent vacation payroll checks payable to actual PSC employees.

After creating the fraudulent checks, Buchanan forged the employee's signature, signed her own name as the second endorsee and cashed the checks at a local bank. She was able to cash the checks without arousing the bank's suspicion under the pretense that she was cashing the checks as a favor to employees.

During the course of the scheme, Buchanan embezzled approximately $1.8 million from PSC. She also failed to report the embezzled funds as income on her 1998-2001 income tax returns, which resulted in a tax loss of $208,050.

"The payment of taxes is essential to the efficient operation of our government," said Al Patton, a special agent in charge of IRS criminal investigation. "To ensure confidence in our tax system, the IRS has a responsibility to investigate and pursue prosecution of individuals who intentionally violate the nation's laws."

Buchanan now faces a maximum penalty of 10 years and/or a fine of $250,000 o passing forged securities; and a three year prison term and/or a fine of $100,000 on making false statements on her tax returns. Sentencing is set for Aug. 26.