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October 5, 2007

North Reading man guilty of embezzling $550K

BOSTON - A North Reading man pled guilty yesterday in federal court to fraud charges relating to a scheme in which he stole over $550,000 from his former employer, CitiStreet, LLC.

Robert Donohue, 46, of 5 Greenbriar Drive, North Reading, pled guilty before Chief U.S. District Judge Mark Wolf, to 10 counts of mail fraud.

Prosecutors say Donohue, a former vice president at the Quincy-based CitiStreet, had defrauded his employer over three years beginning in September 2002.

CitiStreet is a global benefits provider, offering record keeping services and plan administration for public and private retirement plans and their participants.

In his position at CitiStreet, among numerous responsibilities, Donohue oversaw and administered certain retirement accounts. He had the authority to issue checks and otherwise convert funds from the retirement accounts he administered.

From about September 2002 to October 2005, Donohue executed a scheme to defraud in which he caused certain checks to be issued by CitiStreet, to an account he set up under the name of a Michigan employee retirement program at Charles Schwab & Co.

Donohue had complete control over the account, and used funds deposited in it to buy securities, mutual funds, goods and to pay for personal expenses.

Judge Wolf scheduled Donohue's sentencing for Jan. 3, 2008.

He faces a maximum penalty of 20 years imprisonment and a $250,000 fine on each count of conviction.

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