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$1M Embezzlement to End in Prison

Friday, March 6, 2015

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A former Ennis Paint executive has been sentenced to four years and five months in prison for stealing more than $1 million from the pavement coatings manufacturer.

DeMarco Doxie was the Environmental Health & Safety (EHS) manager for Ennis from June 2007 to August 2011 when he "systematically embezzle[d]" $1,008,417.49 from the company by creating a sham side business at his office in Atlanta, GA, the FBI said.

EnnisPaint
Ennis-Flint

Ennis-Flint (formerly known as Ennis Paint and Ennis Traffic Safety Solutions), a global coatings supplier, was the victim of a four-year, million-dollar embezzlement by its former EHS manager.

(Ennis, also known as Ennis Traffic Safety Solutions and then based in Dallas, TX, has been known since a 2012 merger as Ennis-Flint. The global supplier of traffic safety coatings and pavement marking materials and services is now based in Thomasville, NC.)

Sham Vendor

Doxie, 44, of South Bend, IN, was indicted in April 2013 on 21 counts of fraud—an indictment that quickly became 47 counts after wire fraud was added to the mix. Each charge carried a maximum sentence of 20 years in prison and a $250,000 fine.

Authorities say Doxie created Outlook Environmental & Safety Solutions LLC, a shell company that became a bogus environmental-services vendor for Ennis and the vehicle for Doxie's theft. Outlook never had any employees and never did any actual work, said the FBI, which investigated the case with the Internal Revenue Service.

Beginning in June 2007, Doxie created phony invoices for work that Outlook supposedly had done for Ennis. Having no idea of Doxie's connection to Outlook, Ennis either paid the bills directly or paid the bills of Doxie's company-issued American Express card, which he also used to pay Outlook.

FinancialCrime
©iStock.com / Yvan Dube

DeMarco Doxie pleaded guilty to dozens of counts of fraud and tax crimes. He was sentenced to four years, five months in prison and ordered to pay more than $1.3 million in restitution.

Eventually, Ennis became suspicious and launched an internal investigation that included retrieving information from Doxie's laptop, cell phone, hard drives and backup tapes, court documents show. The company then turned over everything to law enforcement.

“The defendant manipulated, lied to, stole from, and violated the trust of his employer," said Acting U.S. Attorney John Horn. "He created a fictitious company to bill Ennis for environmental and safety compliance work that his made-up company never performed, and then used a significant portion of the stolen money to upgrade and remodel his home.”

When Doxie was indicted, the FBI estimated the proceeds of his crime at $700,000. The total was later revised upward.

Tax Evasion

In addition, authorities said, Doxie did not report the Outlook income on his income taxes for four years, thus evading $299,750 in taxes.

EnnisFlint
Ennis-Flint

Ennis Paint, also known as Ennis Traffic Safety Solutions, merged in April 2012 with Flint Trading Inc. The company's suspicions and internal investigation uncovered the manager's theft.

Doxie pleaded guilty to all of the charges in September 2014. In addition to his prison sentence, imposed Tuesday (March 3), he was ordered to serve three years of probation after his release and to pay full restitution—more than $1.3 million in all—to Ennis and the IRS.

“In addition to stealing from his employer, Mr. Doxie concealed the income and failed to pay taxes on it,” said Veronica F. Hyman-Pillot, Special Agent in Charge with the IRS.

“Individuals who line their pockets with profits from fraudulent schemes should know the money is taxable and you will be held accountable."

   

Tagged categories: Asia Pacific; Business operations; Coatings manufacturers; EMEA (Europe, Middle East and Africa); Enforcement; Ennis-Flint; Latin America; Laws and litigation; North America; Program/Project Management; Protective Coatings; Roads/Highways; Striping; Traffic paint

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