Joseph F. Satava charged with embezzling $2.9 million from Medical Mutual. (Source: WOIO)
A Sheffield Lake man has been charged with embezzling
approximately $2.9 million from Medical Mutual.
Joseph F. Satava, III, age 69, was charged in a criminal
information with one count of theft of embezzlement in connection with health
Satava embezzled approximately $2.9 million from his
employer, Medical Mutual, between August 1997 and November 2013, according to
Satava began working for Medical Mutual in 1971, and held
the position of Manager of Credit and Collections for the past 20 years. In
this capacity, he had the authority and managerial discretion to request and
approve checks in amounts up to $5,000. During his tenure, Satava
discovered a way to use this managerial authority to create reimbursement
checks that he could then embezzle, steal, and convert, undetected, to his own
personal use, according to the information.
To accomplish his embezzlement, Satava reviewed weekly
printouts of the company's accounts receivable trial balance statements to
identify new companies that had signed contracts for insurance coverage. The weekly printouts included the amounts submitted by each company as the
first payment for the insurance coverage. These payments were referred to
as "binder payments." Each binder payment was credited to the finance
division's "Binder Suspense Account." At the end of each month, each
company payment was then credited to the appropriate client-specific revenue
account, according to information.
During most weeks, Satava selected between two and four
companies from this printout that made binder payments under $5,000 and created
a reimbursement check in the exact amount of each respective customer check
submitted to the company. He caused the reimbursement check to be created
by completing a company check reimbursement form. On the form, Satava
listed an employee of the client company as payee, and requested payment in the
amount of the company's binder check. He stated on the form that
insurance coverage had been denied as the reason for the requested
To conceal his embezzlement, Satava did not charge each
reimbursement to the Binder Suspense Account. Instead, he charged the
checks to an account that handled several billions of dollars of revenue each
year. As such, the checks created by Satava were immaterial in amount
relative to the volume of funds passing through this account, so the checks
were not detected. Because the reimbursement checks were not charged
against the account into which the binder payments were deposited, the coverage
for each client company still went into effect, according to the information.
To negotiate the check, Satava forged the name of the
payee appearing on the reimbursement check that he used without
authorization. After he forged each check, he countersigned his own name
beneath the forged name. Defendant used ATMs to deposit each check into
his own personal bank account to avoid scrutiny from bank officials regarding
the third party checks, according to the information.
Satava produced at least 1,382 reimbursement checks that
he forged, countersigned, and deposited during his tenure as the manager of
credit and collections, according to the information.
Satava used the embezzled funds to pay for living
expenses that were otherwise beyond his means, such as furniture and other
household items, his adult son's personal expenses, a car loan, travel and
personal vacations and a retirement home on Lake Erie, according to the
If convicted, the defendant's sentence will be determined
by the court after a review of factors unique to the case, including the
defendant's prior criminal record, if any, the defendant's role in the offense,
and the characteristics of the violation. In all cases the sentence will
not exceed the statutory maximum and in most cases it will be less than the maximum.
Tuesday, January 23 2018 10:51 PM EST2018-01-24 03:51:43 GMT
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You've heard of supermoons, blue moons, and blood moons, and, depending on where you are on Jan. 31, you'll be able to see all three in one.