Embezzler takes tax-fraud plea deal

Sentencing is set in May for a Lake Zurich man who admitted he filed a false federal income-tax return by not reporting nearly $174,000 of embezzled income while chief financial officer of a freight-forwarding company.

Jeffrey Meyer, 49, entered a plea deal Wednesday on the false income-tax return charge Wednesday in U.S. District Court in Chicago.

Under the plea agreement, U.S. District Judge John Darrah can sentence Meyer within or below a guideline range of 18 to 20 months in prison. The sentencing hearing is set for May 21.

Meyer, a certified public accountant, was charged with filing a false tax return in April 2001 by not reporting the $173,902 he embezzled from Cargo Inc. in Bensenville, authorities said. The freight-forwarding firm suddenly closed in May 2002.

Federal officials said Meyer stole from Cargo in 2000 and 2001. One way he did it was by issuing unauthorized payroll checks to himself and concealing the income by creating false W-2 forms at year's end, according to court filings.

Meyer, who worked nearly 15 years for Cargo, also was accused of using a company credit card for unauthorized personal expenses, with billing statements sent to his home.

Richard T. White founded Cargo Inc. in 1977 and was the company's president when it folded. He said he never knew Cargo's financial records under Meyer's control were wildly inaccurate until it was forced to shutter.

"I entrusted my whole company to him virtually the whole time he was there," said White, who now operates a freight-forwarding franchise in Itasca.

At least 100 employees weren't paid for their final two weeks of work when Cargo failed in 2002. During its pinnacle in 1999 and 2000, Cargo did an estimated $60 million in annual sales.

White said he hired Meyer after becoming impressed with his work at an outside accounting firm.