Former Detroit payroll employee: I stole $265K from city

Tresa Baldas | Detroit Free Press

A former city of Detroit employee who worked in the payroll department pleaded guilty Tuesday to stealing $265,000 from the city through an embezzlement scheme involving her relatives.

According to the U.S. Attorneys office, Masharn Franklin, 53, of Detroit, tricked the city into writing bogus checks in the names of her relatives and then depositing the checks into hers and their bank accounts. She did this, prosecutors said, through a scam involving garnishment orders.

In 2016 and 2017, Franklin was responsible for overseeing the execution of garnishment orders for the salaries of Detroit city employees. While performing this duty, prosecutors said, Franklin concocted a scheme that involved money being garnished from city funds in the names of her relatives. Once the city had issued checks — in amounts dictated by Franklin — Franklin then deposited the checks into bank accounts held jointly by her and her relatives.

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In total, prosecutors said, Franklin stole approximately $265,573 from the city of Detroit — all of which she is required to pay back under her plea agreement. The FBI has already seized $58,000 in criminal proceeds from Franklin’s bank accounts.

Neither Franklin nor her attorney were readily available for comment.

"Today’s conviction demonstrates that the federal authorities will continue to assist the City of Detroit to ensure that such behavior will not be tolerated as the city continues its comeback,” U.S. Attorney Matthew Schneider said in a statement.

Detroit's FBI chief Timothy Slater also touched on the city's comeback, stating: “Masharn Franklin attempted to weaken the successful efforts of Detroit city officials committed to rebuilding faith in the city government by stealing from the residents.”

Franklin's crime — theft from a program receiving federal funds — carries a maximum sentence of 10 years imprisonment and a fine of $250,000. She is scheduled to be sentenced Aug. 15.

Tresa Baldas can be reached at tbaldas@freepress.com Follow her on Twitter @Tbaldas.