Joseph N. DiStefano, and Erin Arvedlund, 16 March 2019
A former Vanguard Group supervisor stole more than $2 million by taking money from dead or inactive customers’ accounts before state treasurers could take custody of the unclaimed money, prosecutors say.
Scott Capps of Coatesville pleaded guilty to conspiracy to commit mail fraud, two counts of money laundering, and two years of false tax returns on Thursday before U.S. District Judge Michael M. Baylson. Federal prosecutors said Capps, who worked for 23 years for the Malvern-based investment giant, more than tripled his income for 2013 at customers’ expense, with help from his brother-in-law and other accomplices.
Sentencing guidelines call for a potential 46 years in prison, $2.1 million in restitution and a $1.25 million fine, though financial crimes rarely draw long sentences. Capps is free on bail pending sentencing June 26.
Capps was indicted by a federal grand jury in December, charged with drawing checks on Vanguard accounts between 2012 and 2014 using his employees’ stolen passwords.
