CA man stole nearly $1M from Kent company through fraudulent purchases, fake invoices

An IT manager of a Kent-based energy manufacturing company was indicted by a Seattle grand jury this week for creating a scheme to steal nearly $1 million from his employer.

Paul Welch, 43, worked for Algas-SDI remotely in Laguna Niguel, California when he tried to steal more than $950,000 from the company through various schemes. Welch worked for the company from 2011 to 2024 and, according to the U.S. Department of Justice, began stealing from the company all the way back in 2017, using the company’s Amazon business accounts to make unauthorized personal purchases.

“Between 2017 and 2023, those purchases (from Amazon) totaled at least $43,000,” Teal Luthy Miller, acting U.S. Attorney for the Western District of Washington, stated. “Welch primarily purchased electronics such at televisions, laptops, and more—all for personal use. In 2019, Welch began using his company credit card for personal purchases through other online retailers such as Apple, Alaska Airlines, Instacart, and BestBuy.”

Between 2019 and 2024, those unauthorized personal purchases totaled at least an additional $60,000.

Welch’s scheme grows exponentially

The U.S. Department of Justice found that Welch’s scheme accelerated in 2021 when he began making payments to himself disguised as payments to a computer services company. Using a name “very similar” to a Washington-based computer services company, Welch charged Algas-SDI company credit cards to pay the computer services company for IT equipment and services, but would deposit the money into payment processor accounts he directly controlled.

“Between 2021 and 2024, Welch used this scheme to transfer approximately $879,175 from company accounts to his own accounts,” Miller stated.

When Algas-SDI tried to verify these purchases, Welch forged documents and invoices to cover his tracks. On January 19, 2024, the company confronted Welch regarding the money being spent on this Washington-based computer services company. Welch told Algas-SDI that the vendor was a real vendor, and the company subsequently fired him.

“In all, between 2017 and January 2024, Welch secretly made at least 250 fraudulent charges for the third-party vendor he controlled,” Miller wrote. “He made at least 140 unauthorized purchases with retailers using the company credit card and at least 100 fraudulent purchases on the company’s Amazon account. While Welch profited some $950,000 from his theft, the loss to ALGAS-SDI was approximately $982,520 due to various fees on the transactions.”

Welch was indicted on six counts of wire fraud. Wire fraud can be punishable by up to 20 years in prison alongside a $250,000 fine.

Welch will be arraigned on the indictment on April 17.

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