SAN DIEGO
Former Chief Financial Officer Nancy Johnson and Accounts Payable Clerk Tamara Azizov will be sentenced later this year for embezzling hundreds of dollars from the Lawrence Family Jewish Center in La Jolla, California.
They two used a lot of the money to support lavish lifestyles, authorities said.
Johnson, 59, served as the Center’s CFO from April 1991 to April 2014, overseeing its $13 million annual budget. As CFO, Johnson, of Escondido, had access to the Center’s bank accounts, credit card accounts, and bookkeeping records.
The two plead guilty to last week to wire fraud and filing a false tax return.
Between 2008 and April 2014, she misappropriate $412,289, which she used for a variety of purchases this includes:
- A stay at the Grand Wailea Resort in Maui
- Airfare to the Bahamas
- Jimmy Choo footwear
- Tickets to the ESPN X Games
- Dinners at upscale eateries such Ruth’s Chris Steakhouse
While she was stealing the money, Johnson ordered the Center department heads to reduce expenses to make up for the money she was siphoning from the Center’s coffers.
Moreover, due in part to the embezzlement, the JCC was forced to cut personnel in order to balance its budget.
Azizov, 62, served as an Accounts Payable Clerk from June 1989 to May 2014.
In an entirely separate scheme unknown to Johnson, Azizoz, of San Diego, misappropriated $154,192, which she also used for a variety of purchases, including the following:
- Tom Ford sunglasses
- $1,820 for sushi at Zip Fusion
- Simone Pérèle lingerie
- Thousands of dollars’ worth of clothing from Neiman Marcus, Nordstrom and Anthropologie
- Johnson and Azizov continued their thefts until leaving the Center in the spring of 2014.
On most occasions, they would simply use the Center’s credit cards to make personal purchases. In order to fool the JCC’s executive staff, auditors, and bookkeepers, they both (without knowledge of the other) falsely characterized their purchases as legitimate Center expenses.
At the end of the year, Johnson would then allocate her personal expenses to the Center’s departments that had not exceeded their budgets.
The Jewish Center’s History and Services
The Jewish Center was founded in 1945 and promotes the continuity and vibrancy of the Jewish community by offering social, cultural, educational, and recreational programs and services, according to authorities.
The Center operates, among other things, a preschool, a center for senior citizens, and one of the largest single-site summer day camps in California, officials stated.
Each year, thousands of community members attend the Jewish Center’s San Diego Jewish Film Festival and the San Diego Jewish Book Fair.
As part of their pleas, Johnson and Azizov will be required to pay the Center the funds they stole, officials stated.
Johnson’s next court appearance is on August 28. Azizov is scheduled to be in court on Sept. 11.
Johnson and Azizov will appear for sentencing as well as a hearing to determine the amount of restitution.
Both are facing up to 23 years in prison, officials stated.
“San Diego has many fine charitable institutions like the JCC,” said U.S. Attorney Laura E. Duffy. “I will do everything in my power to insure that individuals who donate to these charities know that their funds are going to be used in an appropriate manner.”
FBI Special Agent in Charge, Eric S. Birnbaum commented, “While the FBI investigates many types of fraud, when charitable organizations are victimized by those it entrusts to safeguard its assets, it is profoundly disturbing. The defendants in this case stole money intended to help children and senior citizens to indulge their lavish lifestyles.”
Erick Martinez, Special Agent in Charge of IRS Criminal Investigation said, “The defendants misappropriated funds from a local community center designed to enrich the lives of those it served. IRS Criminal Investigation will not stand still while criminals line their pockets with illicit proceeds while community programs go underfunded. The defendants have overstepped their bounds feeling entitled to these funds.”
