SAN JOSE -- A Danville man pleaded guilty in federal court Wednesday to committing wire fraud, according to the U.S. Attorney's Office.
Leo Joshua Kennedy, 62, admitted to fraudulently transferring money out of trust accounts controlled by a company he worked for, according to a news release from U.S. Attorney Melinda Haag. Kennedy worked as an accountant at Backhouse Fiduciary Services, a San Jose-based company that administered beneficiary trust accounts.
Kennedy also admitted to stealing between $7 million and $20 million from various beneficiary trust accounts at the same company, Haag said.
According to the release, Kennedy made the illegal transfers without account-holders' permission and used the funds to pay for his personal investments and living expenses.
The maximum penalty for wire fraud is 20 years in prison and a fine of $250,000. Prosecutors will also see to force Kennedy to pay restitution in the amount of $13,787,151.
Kennedy has been released on $50,000 bail. He is scheduled to be sentenced on Aug. 20 in San Jose.
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