A Tennessee woman has been sentenced to eight years in federal prison for stealing nearly $16 million in insurance premiums and tax payments.
Andrea Rudd, 38, will serve 60 months for tax evasion and 36 months for mail and wire fraud.
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Rudd was the owner of HR Comp, a payroll services firm, according to a report by the Knoxville News-Sentinel. In that capacity, she collected money from small businesses to cover workers’ compensation insurance and payroll taxes.
Instead of sending the money on, however, Rudd pocketed it. Assistant US Attorney Frank Dale said that Rudd stole $5.4 million in workers’ comp premiums and $10.4 million in payroll tax money, using the cash “to maintain a lavish and self-indulgent lifestyle.”
In addition to her prison sentence, Rudd has been ordered to pay nearly $15.8 million in restitution, the News-Sentinel reported. She was also sentenced to three years of supervised release after her prison term ends.
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