A former executive with a Kansas City company was sentenced to prison Friday for embezzling about $6.5 million from his former employer.
Douglas Lee Ferrell, 34, will serve five years in federal prison without parole, according to the U.S. Attorney's Office for the Western District of Missouri. Ferrell's fraud directly resulted in layoffs at Scarbrough International headquarters in Kansas City, where he was the chief financial officer.
The Kansas City man used some of his stolen funds to purchase and remodel a beach house in the Cayman Islands. He used about $500,000 to buy the house and then spent $77,000 at a Cayman Islands tile company for home improvements, according to the release from the Attorney's Office.
The release also stated:
▪ Ferrell blamed other employees for Scarbrough's financial struggles, "calling them out for their wastes of company funds, while he embezzled substantially greater sums."
▪ He recommended employees for layoffs in 2010, the same year he stole about $600,000. His fraud directly resulted in some layoffs at the company.
▪ Ferrell stole the funds using a company credit card and PayPal accounts from 2006-14.
▪ The fraud was discovered when American Express canceled a company credit card due to Ferrell's charges. Scarbrough officials then confronted Ferrell, who confessed and said he would sell assets to repay the company.
Scarbrough International is a U.S. customs broker and international freight forwarder with headquarters near Kansas City International Airport.
Ferrell had pleaded guilty to wire fraud and money laundering in August.
He must pay restitution and still owes more than $1.9 million.