An Illinois business executive who was fired for spending millions of his employer’s money to fund a lavish lifestyle with his escort-turned-girlfriend has pleaded guilty to one count of wire fraud.
Scott Kennedy, 43, entered the plea on Wednesday during a brief hearing before US District Judge Elaine Bucklo.
Kennedy, who worked for the France-based drug-delivery company Nemera at its Buffalo Grove location, is accused of racking up $5.8million on his company credit card – without his employer’s knowledge. The money paid for various expenses, including moving his former girlfriend Crystal Lundberg into a mansion.
Scott Kennedy (left) admitted he spent $5.8million of his company’s money to fund a lavish lifestyle for him and his escort-turned-girlfriend Crystal Lundberg (right)
Kennedy met Lundberg on Backpage.com, a website that advertises sexual services
Kennedy was a top financial executive at Nemera, a France-based drug-delivery company
According to an FBI affidavit, Kennedy spent $585,000 to move Lundberg and her children into a San Diego mansion
According to the Chicago Tribune, Kennedy entered his guilty plea as part of a deal which requires him to cooperate against Lundberg, who has pleaded not guilty to the six-count indictment against her.
Federal sentencing guidelines call for up to about six and a half years in prison for Kennedy, but under his plea agreement prosecutors will only push for three and a half as long as he cooperates.
Kennedy was a top financial executive at Nemera when he met Lundberg through Backpage.com, a website that advertises sexual services.
Kennedy gave Lundberg access to his company credit in November 2015 and in less than a year and a half the couple spent more than $5million in unauthorized charges, the Chicago Tribune reports.
According to an FBI search warrant affidavit, Lundberg used his company credit card to move Lundberg, her children and her pets into a mansion in San Diego after she reached out to him for financial help. He also used the card to pay for her $12,000-a-month rent.
After Lundberg was settled into her new home, Kennedy footed a $585,000 bill – again on his company credit card – to help Lundberg open a medial spa called the Royalty Room. The document alleges that he also bought two Rolex watches at a combined cost of $60,000, paid $8,000 a month for a personal driver, bought two purebred dogs for $6,000, hired a maid for $2,500 a month and took trips to Bali, France, Costa Rica, Hawaii, Bora Bora and Fiji.
Kennedy also hired a maid for $2,500 a month and paid $8,000 a month for a personal driver
Kennedy was fired from Nemera last March after an internal investigation revealed improper use of the company’s money
The couple also took trips to Bali, France, Costa Rica, Hawaii, Bora Bora and Fiji
Lundberg has pleaded not guilty to the six-count indictment against her
Kennedy said he was duped by Lundberg because he ‘wanted to have a family’
Kennedy told the FBI that Lundberg made him believe that she had a $4million trust fund and she would reimburse him the money.
Court records reveal that Lundberg filed for bankruptcy in 2009 and did not mention a trust find in her filing, the outlet reports.
Kennedy was fired from Nemera last March after an internal investigation revealed improper spending of company money. He told the Chicago Tribune in a phone interview last year that he was duped by Lundberg because he ‘wanted to have a family’.
‘I wanted to be loved and cared for. My heart kind of overrid my head and said, “Take a chance,’” he told the outlet. ‘Well it blew up in my face.’