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Former Dubuque company employee imprisoned for embezzling $365,000

A Dubuque man, who once served as a company’s Comptroller, embezzled hundreds of thousands of dollars and was set to spend more than two years in prison.

A Dubuque man, who once served as a company’s Comptroller, embezzled hundreds of thousands of dollars and was ordered to spend more than two years in prison.

From the privately-owned Dubuque company, 51-year-old Michael Schute admitted to embezzling more than $365,000 between 2008 and 2013, according to a statement from the U.S. District Attorney.

“Schute embezzled the money by writing checks on the company bank account to pay personal credit cards and other bills,” the statement said.

To make it look like the money was spent on company-related things, Schute would make fake entries into the company books, according to the statement.  Schute did not claim the embezzled money on his taxes, and since illegal income is taxable, he now owes more than $86,000 in taxes on that money.

Schute pleaded guilty in February 2015 to one count of wire fraud and one count of filing false tax returns. In U.S. District Court in Cedar Rapids on May 11,2015, Schute was ordered to serve two years and nine months in federal prison, without possibility of parole.

The former Comptroller also was ordered to pay more than $306,000 in restitution to the company and its insurance company. He also must pay $200 for a special assessment and will have three years of supervised release once he is out of prison.

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