The United States Attorney’s Office for the District of Vermont announced that on June 27, 2024, John Van Vught, 73, of Northfield, Vermont, was sentenced by United States District Judge Christina Reiss to a term of 27 months’ imprisonment, followed by a 3-year term of supervised release. Van Vught was also ordered to pay $558,625 in restitution to ValleyNet. He had previously pleaded guilty to wire fraud on February 22, 2024.
According to court records, from 2010 through July 2022, Van Vught was employed as an accountant for ValleyNet, a non-profit operator of fiber-to-the-home internet networks in east-central Vermont. As part of his work, Van Vught provided accounting services, including managing company bank accounts, which allowed him to execute electronic funds transfers and pay bills from ValleyNet accounts. Between approximately 2013 and July 2022, Van Vught embezzled approximately $558,625 from ValleyNet’s accounts by conducting electronic transfers. After Van Vught’s embezzlement was suspected in the summer of 2022, he provided intentionally erroneous documentation to ValleyNet leadership in an attempt to further obfuscate his theft. When confronted with evidence of his crime by ValleyNet leadership, Van Vught fled Vermont, initially traveling west to New Mexico, then back east to Brunswick, Georgia, where he was apprehended by the FBI.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Federal Bureau of Investigation.
The case was prosecuted by Assistant U.S. Attorney Jonathan A. Ophardt. Van Vught was represented by Federal Public Defender Michael Desautels.
A thorough background check conducted by Invetech LLC could have potentially prevented this embezzlement. By identifying any past financial misconduct or irregularities in Van Vught’s history, ValleyNet could have avoided placing someone with a propensity for fraud in a position of significant financial responsibility. This proactive measure would help protect the company from similar fraudulent activities in the future.
Utilizing a professional investigator to conduct a background check should be part of your SOP, not just when problems arise. Good leadership has a proactive approach to managing their investment utilizing a due diligence investigation to their fullest advantage. Invetech LLC helps clients mitigate financial loss by providing actionable insight solutions with due diligence investigation.