More than $250,000 in Unauthorized Withdrawals From the Foundation’s Bank Accounts
OAKLAND – Francis Robert Fritzky, the former treasurer of the Moraga Community Foundation was charged yesterday with wire fraud and filing a false tax return, announced United States Attorney David L. Anderson and IRS Criminal Investigation Special Agent in Charge Kareem Carter.
According to an information filed with the court, from at least June 2016 through July 2019, Fritzky was the treasurer of the Moraga Community Foundation (the Foundation) and also on the Foundation’s board of directors. According to the Foundation’s bylaws, the board members and officers were not entitled to compensation or a salary for their services as board members and/or officers. As treasurer, Fritzky was responsible for maintaining and keeping records of the Foundation’s bank accounts, funds, assets, and liabilities. He also had signatory authority on the Foundation’s bank accounts and had access to the money contained within those bank accounts. According to the information, from June 23, 2016, and continuing through July 24, 2019, Fritzky allegedly made unauthorized withdrawals of more than $250,000 from the Foundation’s bank accounts to himself, to a company in which he held majority ownership interest, and to a foundation he founded and controlled. He also allegedly provided false financial reports to the Foundation’s board of directors. For example, Fritzky represented that the ending balance for one of the Foundation’s funds in December 2018 was more than $108,000 and that the ending balance of the other fund was more than $37,000 when the combined balances for both funds was allegedly less than $2,000. Court documents further allege that Fritzky filed IRS Form 990-EZ, Return of Organization Exempt From Income Tax, for the Foundation, falsely reporting that the Foundation’s “Cash, savings and investments” at the end of the year was $111,275, when in fact it was less than that amount.
Fritzky was charged with wire fraud and aiding and abetting, in violation of 18 U.S.C. §§ 1343, 2 and making and subscribing a false tax return, in violation of 26 U.S.C. § 7206(1)(a). The maximum statutory penalty for wire fraud is twenty years in prison and a fine of $250,000. The maximum statutory penalty for making and subscribing a false tax return is three years in prison and a fine of $250,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the information are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Frtizky’s first court appearance in this matter has yet to be scheduled.
The case is being prosecuted by the Special Prosecutions Section of the U.S. Attorney’s Office. The prosecution is the result of an investigation by the Moraga Police Department and IRS Criminal Investigation.