By: E&P Staff Charles T. Wilson, who was the Tampa Tribune's credit manager for more than 15 years, was free on bond Friday on charges he and his wife collected more than $1 million in phony payments from the paper and its Media General parent and by diverting money owed to advertisers.
Wilson and his wife, Lynda, were arrested Thursday by Secret Service agents and charged with federal mail fraud.
Authorities say they created a credit collection company out of their home that between August 1998 and May 2008 collected nearly $500,000 in payments from the Tribune and Media General for services they never performed. Another $571,000 was stolen by diverting checks from the paper to advertisers who were owed money, according to an account in the Tribune Friday by Elaine Silvestrini.
Authorities say the home-based collection company once collected on legitimate debts, but by 1998 concentrated solely on defrauding the Tribune and its advertisers. The Wilsons would submit invoices to the newspaper -- which were approved for payment by Charles Wilson.
The Tribune reported the scheme was detected last May while Charles Wilson was on vacation. An aquarium supply business owner complained to a credit supervisor that his Tribune account had been frozen because of nonpayment. The supervisor discovered Charles Wilson, her boss, had diverted two payments from the business to himself.
Tribune Controller Robert Amos began an investigation of Wilson, who was fired that month.
The stolen money was deposited in checking accounts controlled by the Wilson. Among the payments they made from the account were checks written to a private Christian school.
Tribune Publisher Denise Palmer said the paper recovered most of its losses from insurance, and had repaid or issued credits to advertisers defrauded.
"In addition, Media General has implemented additional internal control functions at all company locations to prevent a similar occurrence," she said in a statement. "We are pleased that the federal government is aggressively pursuing this course of action against Mr. Wilson."
The Tribune reported an assistant U.S. attorney said Lynda Wilson was in plea negotiations with the feds. The couple was released on a $75,000 signature bond.
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