Ex-office manager of Mesa company accused of embezzling $1.6 million

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(Source: MGN Online) (Source: MGN Online)
PHOENIX (3TV/CBS 5) - The former office manager of a Mesa company was arrested Monday by special agents of the Internal Revenue Service on suspicion of embezzling almost $1.7 million from the company.

Deanna Frader is accused of writing approximately $1,689,357 in business checks from Ardent Sound between January 2008 and April 2012, primarily to pay her personal bills or those of a martial arts school she owned with her son, according to an indictment released Wednesday.

Frader then falsified the financial records to hide the embezzled funds, according to the indictment.

Frader also failed to pay federal income tax on the embezzled funds for the 2008 to 2011 tax years, resulting in an underpayment of about $497,763 in federal tax, according to the indictment.

Ardent Sound was founded in 1994 and produces ultrasound devices and Frader had served as the company's secretary and director from 1994 until she left in 2012, according to the indictment.

Frader faces 35 counts of mail fraud, three counts of tax evasion and one count of aggravated identity theft, according to the indictment.