The (now-former) CEO of moulding-manufacturer Ivy Industries, John Reid, has confessed to stealing $2.4MM from Albemarle First Bank. Reid says that he set up the check-kiting scheme between Albemarle First and SunTrust in an effort to keep his business afloat. He was caught when he tried to tie a new bank, Southern Financial, into the scheme. Ivy Industries laid off 40 of their 50 employees last Friday. Monday, Albemarle First filed a $10MM suit against Reid and four of the organizations’ officers. David Dadurka has the story in today’s Progress. 4:09pm Update: Also, see The Hook’s story for a whole mess more information.
News and meta-news about Charlottesville, VA, since 2001.
Sideblog
Police announced this afternoon that their investigation into what was initially believed to be a fatal fire on Rugby Avenue is now a homicide investigation. #
The Virginia Supreme Court has denied George Huguely’s appeal. His second-degree murder conviction will stand, WRIC reports. #
In a carefully worded story, and not citing specific sources, WTVR reports that forensic evidence belonging to Jesse Matthew Jr., the main suspect in the disappearance of Hannah Graham, matches forensic evidence collected during the investigation of Morgan Harrington’s 2009 murder. #
In the wake of Hannah Graham’s disappearance, and the evidence that came from private security footage, city officials are revisiting the question of installing security cameras on the downtown mall. #
Both Charlottesville Registrar Sheri Iachetta and former Electoral Board member Stephanie Commander have turned themselves in to the police on
four six and four felony counts of embezzlement, respectively. #Ten years ago, the National Institutes of Health budget doubled and schools like the University of Virginia built massive new research facilities. A decade later, those buildings remain largely underutilized. NPR visits UVA in this story on the effect of federal binge and spurge spending in the sciences. #
In 2012, Council approved a new student housing complex on West Main—now some council members are questioning whether what they were shown matches what was built. #
The Architectural Review Board has approved a bike-themed mural on West Market, below the McGuffey Art Center, although at least one member expressed concerns that it might look like the bicyclists were riding away from Charlottesville’s downtown. #
City Police Chief Tim Longo is meeting with city leaders to work on protocols regarding the use of military surplus police weapons in Charlottesville. #
A 100-year-old Colonnades resident received military honors for her service in the WWII Women’s Army Corps #
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…the rules are different for some. Eh? It’ll be interesting to see what comes of Mr. Reid, in contrast to the 10 years (?) the dizzy Earlysville couple got for serving beer to teens.
It is real easy to throw stones, isn’t it? Here is an obvious case of a guy who was responsible for the paychecks of a lot of people doing what he could to keep his people employed, probably thinking he needed just a small amount of time before additional revenue came in. Yeah, he admitted that he made a judgment error, but I’m betting his employees appreciated this guy as one who cared about their welfare.
Personally, I hope people like John Reid do a lot better in the courts than those Earlysville folks.
at the same time he "helped" all those people he employed, what he did had the potential to hurt a lot more people. he could have single-handedly shut down an entire bank, costing people jobs and a LOT of money. he is not some robin hood, he’s just couldn’t admit failure
Your reasoning is exactly why white-collar crime is punished so leniently, particularly when the fat cats are caught.
How is your description of what John Reid did–well-intentioned hard-working guy who was trying to do what he thought was the right thing, makes rather large judgment in error–any different from a description of what Lisa Robinson did? She, too, made her wrong-headed decision based on what she thought was best–kids will drink at parties whether we want them to or not, so let’s supervise their drinking and have them spend the night here instead of driving home drunk. Whether you think she’s an idiot or not, her motivations were surely well-intentioned.
when the nice-looking guy in the suit steals money, you sympathize with his good intentions–aw, he just wants to serve his employees. but let it be a deviant-looking member of the underclass who steals things or sells drugs to keep his or her family fed, then down comes the hammer of justice, hard.
There is a difference. I believe the recidivism rate for white collar criminals is virtually zero, while it’s quite common for "underclass" criminals who steal and sell drugs is rather high. The punishment definitely needs to fit the crime, but also the criminal. Besides, when was the last time you heard of a "common criminal" making a stunningly public confession on all counts, and apologizing? Maybe never?
Yeah there’s a difference.
Let’s break down the 3 scenarios presented here
1. we have an earlysville couple supplying liquor to a teen party a short time after 2 kids were killed coming back from an Earlysville party. Reportedly, they told the kids to gargle with vinegar if the police showed up…
2. we have the typical white collar criminal, stealing from his employer for personal gain
3. we have this case, where the head of a company was apparently trying to buy time to keep his company, and the jobs of 40 employees afloat during bad economic times by playing with the float time at a local bank, whose funds are at least partially insured. And this guy, as Al points out, admitted the crime and took full responsibility.
Gee, I don’t think I have much trouble deciding that #3 is less heinous than the other two! Personally, I’ve never been CEO of a company, so I could not say I’d make better decisions, but I am a parent and wouldn’t make such a dumb one.
this guy […] admitted the crime and took full responsibility
Okay then. Let’s see responsability taken. 10 years minimum.
I could not agree with you more! John Reid was not doing this for personal gain but for the families of all his employee’s. He has taken full responsibility and has admitted he was wrong. To even try and compare this with children losing their lives is ridiculas! I hope that company can somehow pull out of this.
<I>10 years minimum</I>
Based on…what?
Do you really think the Earlysville couple is going to spend 10 years? I believe it is now on appeal. I’m betting the judge knew the sentence would be appealed and further that he expects the sentence to be lightened on appeal. The harsh sentence was purely designed to get a big media reaction – which it did – and make sure other parents out there take responsibility for their children’s parties in light of the tragic deaths of 2 local teens.
To equate this with Ivy Industries is nonsense.
I HAD WRITTEN A RESPONSE, HOWEVER, IT SEEMS TO HAVE BEEN REMOVED
CAUTION: RESPONSES ARE BEING EDITED OR DELETED
Please re-post …I would like to know what you had to say.
I has posted that if the Earlysville couple were always meant to get off lighter than 10 years, then Mr. Reid should be given at the very least 10 years, say 50 years, as a sentence for media attention, knowing full well he’ll appeal and end up with a few months at most?
This is of course ridiculous. A responsible and respectable judge should rule and sentence appropriately, the first time around. What, is this a racket, trying to fill up local courts?
Well as has been said….The Ivy Industry case should NOT even be classed with children losing thier lives. Mr.Ried in my opinion is not a *BAD* person…just made some wrong choices and he will be dealt with. I imagine there is more behind why he did what he did. I think a few other people helped put him in the position to fail and then bailed out on him. They should also be dealt with!
Okay, get real. Children did NOT lose their lives from the Earlysville beer kegging that night. It’s like blaming Reid for potential suicides due to the stock drop of the bank. The parental couple were more than stupid and as I have said, they deserve to be forced to do a bunch of community work, like helping clean up teen parties and picking up beer cans along the highways, but no real harm occurred from that party. On the other hand, this Reid fat cat may very well deserve to do some time and restitution. If he’s got no priors and after investigation, it is determined that his actions were primarily to save his company, then yes, I would like to see a certain lenience. But he has effectively hurt people already. What if someone was counting on some of that money to pay for a critical medical surgery? Do YOU know?
My primary point here is that white collar crime should be taken seriously and I feel it’s not.
When did "I made a mistake in judgement" substitute for "I stole a lot of money"?
I havent read all the laws of the land but I think one can`t be prosecuted for a "mistake in judgement" – now embezzlement, grand larceny, yes, but not the old "mistake" routine.
um, sassy–no children died in the Earlysville case.
Would a *BAD* person tell blatant lies to his/her supplier’s face about when past due invoices would be paid? This guy owes our company over $100,000 and we will probably never see a penny becuase the banks are the only secured creditors. Before you place judgement on *BAD* people in the future, think about the people that will suffer. He graduated from UNC and holds an MBA from UVA, so don’t even try to tell me that he didn’t realize the consequences of his actions. He robbed us in the same way that a masked robber steals from a convenience store.