Ex-Accounting Manager, Paul McDaniel Sentenced to 10½ Years in Prison for Embezzling More Than $36 Million from Internet Company
LOS ANGELES (STL.News) A former accounting manager for a Los Angeles firm was sentenced today to 126 months in federal prison for embezzling more than $36 million from his employer’s client and then using the bulk of the illicit gains to pay off tens of millions of dollars in credit card debt.
Paul McDaniel, 44, a.k.a. “Edward Martin Karuku,” who resided in Orange before fleeing the United States over four years ago, was sentenced by United States District Judge John A. Kronstadt. McDaniel pleaded guilty in September 2019 to one count of wire fraud.
For more than seven years, McDaniel embezzled the funds from Hypermedia Systems Inc., a media technology services firm based in downtown Los Angeles. McDaniel initially was an independent contractor for, and then an employee of, E-Times Corp., a downtown Los Angeles-based professional services firm that provided accounting assistance to Hypermedia Systems. McDaniel was assigned to work at Hypermedia as an accounting manager. As part of his job, he would request payments to be made from a Hypermedia account to pay Hypermedia vendors.