A former Willis executive in Vermont was arrested by federal authorities on Monday on charges he embezzled $2.2 million for his own personal use.
The U.S. Attorney's Office District of Vermont said Kenneth MacKay, 36, of Williston, Vt., was arrested and charged with bank and wire fraud and money laundering.
He is charged with embezzling millions from his employer, Willis Management (Vermont) Ltd., and clients of Willis.
Willis Management (Vermont) manages captive programs and is a subsidiary of Willis North (America), a unit of London-headquartered Willis Group Holdings.
Mr. MacKay is charged in a scheme where from 2004-2008 he diverted funds deposited into Willis accounts into a shell corporation he created. He is alleged to have diverted more than $2.2 million into RCM Financial and to have laundered the money by building a residence in Williston and purchasing a condominium in Orlando, Fla.
The scheme was discovered by Willis, and Willis contacted the FBI after discovering the scheme, the U.S. Attorney's Office said.
As part of its action, the U.S. Attorney's Office has filed a warrant to seize $240,000 in five 529 Qualified Tuition Plans for Mr. MacKay's children, alleging that the funds came from his scheme. It also filed a forfeiture action for his Williston home, valued at more than $1.9 million, and the Florida condominium, valued at $238,000.
According to the arrest affidavit, Mr. MacKay allegedly admitted to FBI Special Agents William G. McSalis and Daniel Racheck that he engaged in the scheme during an interview at the FBI's Burlington office on Feb. 21 of this year.
U.S. Attorney Thomas D. Anderson said Mr. MacKay has not yet been indicted and a hearing on probable cause is set for March 24. He could not comment any further on the grand jury hearing.
Both he and Mr. MacKay's attorney, Nancy Waples, with the law firm Hoff Curtis, in Burlington, Vt., said prosecutors have 30 days to seek an indictment from the March 3 arrest. If there is an indictment, then there will be no probable cause hearing.
Mr. MacKay was freed on various conditions, including surrendering his passport.
Ms. Waples said Mr. MacKay plans to plead not guilty to the charges. "We will vigorously defend him as to these allegations. He has had a stellar career for the 12 years he has been in the industry," she added.
A spokesperson for Willis said Mr. MacKay is no longer working for the firm and released the following statement: "Willis discovered financial irregularities involving [Mr.] MacKay and undertook an immediate internal investigation. The company contacted federal law enforcement authorities and is working with them to resolve the matter. The amount of financial exposure for Willis is not material. Willis has a zero tolerance policy for any kind of unlawful, fraudulent behavior by its associates."
Mr. Anderson said Mr. MacKay faces up to 30 years in prison for each of the bank, wire and mail fraud charges plus a $1 million fine. He faces up to 10 years in prison for the money laundering charges plus restitution equal to twice the criminally derived funds.
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