Ernenwein & Johnson, LLP

GIRL SCOUT MANAGER PLEADS GUILTY IN LOS ANGELES EMBEZZLEMENT SCHEME

Former Senior Manager for the Girl Scout Council of Greater Los Angeles, Channing Smack, has pleaded guilty in U.S. District Court in Los Angeles for charges of money laundering and mail fraud.

Smack, a resident of Marina del Rey, had managed 22 properties for the local Girl Scouts chapter—that is, until he was charged with embezzling $370,000 from the organization.

The charges came to light after Girl Scout executives had discovered irregularities in some of the records kept by Smack. According to court documents, Smack had been approving invoices from a fake maintenance and engineering firm that was registered under the name of his brother…who had died back in 2001. After writing checks to these fake firms, Smack would then deposit the checks into accounts to which he had access.

“We were outraged that a trusted member of our staff would violate the fundamental values we teach our girls every day,” the organization’s Chief External Relations Officer Carol Dedrich said. “Girl Scouts of Greater Los Angeles has very high standards and expectation of our employees and volunteers, as they serve as role models for girls.”

Smack’s plea agreement stipulates restitution to the Girl Scouts in the amount of $370,000. A sentencing hearing is set for May 27, 2014.

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