Manufacturing company co-owner charged with wire fraud and money laundering

May 30, 2023
Neil Divers is accused of diverting tens of thousands of dollars from the company to his personal bank account.

Neil Divers, co-owner of Kodiak, Precision, Inc., a machined component manufacturing company, has been charged with wire fraud and money laundering. He is accused of diverting tens of thousands of dollars from the company to his personal bank account. According to the U.S. Attorney's Office, Northern District of California, company owners discovered Divers’ scheme in 2015, and put controls in place to prevent this from happening. Despite being removed as a signatory on the company’s accounts, Divers was able to circumvent the controls and continue siphoning money.

Divers faces five counts of wire fraud, in violation of 18 U.S.C. § 1343, and two counts of money laundering, in violation of 18 U.S.C. § 1957.  Each wire fraud count carries a maximum sentence of 20 years in prison and a $250,000 fine, while each money-laundering count has a maximum sentence of 10 years in prison with a $250,000 fine.

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