John Laakso, also known as John Trebesch, a 57-year-old former engineering manager at a manufacturing company's Savannah, Georgia, plant, was sentenced in December 2025 to 96 months in federal prison for embezzlement and fraud.
Laakso pled guilty to one count of wire fraud after federal prosecutors alleged that he used his position to secretly direct company work to intermediary businesses he controlled, causing losses of nearly $500,000.
According to the U.S. Attorney's Office for the Southern District of Georgia, Laakso arranged for contracts that billed for services never provided and for goods and services at inflated prices. The Federal Bureau of Investigation investigated the case.
In addition to the prison term, Laakso was ordered to repay the stolen funds and will be on supervised release following incarceration.
Source: https://www.wsav.com/crime-safety/former-savannah-plant-employee-sentenced-for-embezzlement-fraud/amp/
Commentary
In the above source, a plant-level engineering manager exploited authority over contracts and vendors by steering work to companies he secretly controlled and overbilling for goods and services, resulting in nearly $500,000 in losses.
For organizations, this scheme demonstrates how one person's control over vendor selection and approval, when combined with weak oversight, allows insiders to conceal embezzlement over extended periods of time.
To address this risk, organizations need layered internal controls around purchasing and contracting, especially where a single manager can both select vendors and approve invoices.
Key measures for organizations include:
- Implement conflict-of-interest policies requiring employees to disclose any ownership or financial interest in vendors or subcontractors
- Require competitive bidding or price comparison for significant contracts and document the rationale for vendor selection
- Separate duties so that no one person can request, approve, and receive goods or services and authorize payment
- Use data-analytics or periodic audits to identify vendors with common addresses, bank accounts, or principals tied to employees
- Review high-risk spend categories, such as engineering services or maintenance, for patterns of inflated or unsupported billing
The final takeaways for organizations: consistent vendor management, segregation of duties, and proactive auditing are essential to preventing contract-based embezzlement.
