A former California resident was sentenced Thursday to 18 months in federal prison for wire fraud after stealing nearly $1 million from his Kent based employer, the U.S. Attorney’s Office for the Western District of Washington announced.
Paul Joseph Welch, 44, served as the information technology manager for a Kent energy manufacturing company when he used multiple schemes to embezzle more than $950,000 from the business, according to federal prosecutors.
At sentencing in U.S. District Court in Seattle, U.S. District Judge Jamal N. Whitehead said,
“This was not a crime of desperation. You used the funds to support a lifestyle you could not afford.”
First Assistant U.S. Attorney Charles Neil Floyd said Welch’s theft had a direct impact on the company and its employees.
“Mr. Welch stole nearly $1 million from his company to pay for luxuries such as expensive hotel stays, first class airline tickets, and even a Porsche for his wife as a Mother’s Day gift,” Floyd said. “His theft caused the company to cut staff, reduce or cancel bonuses, and delay projects. These impacts justify this prison term.”
According to court records, Welch worked for the Kent company from 2011 until his termination in January 2024. He was promoted to information technology manager in 2018.
Prosecutors said Welch began making unauthorized personal purchases as early as 2017 using the company’s Amazon business account, totaling at least $43,000 between 2017 and 2023. Those purchases included electronics such as televisions and laptops for personal use.
Beginning in 2019, Welch also used his company credit card for personal purchases through retailers including Apple, Alaska Airlines, Instacart and Best Buy. Between 2019 and 2024, those unauthorized purchases totaled at least $60,000, according to prosecutors.
The scheme expanded in January 2021 when Welch allegedly began disguising payments to himself as payments to a computer services company. Prosecutors said Welch created email addresses and payment processor accounts using a business name similar to that of a legitimate Washington state computer services company. The legitimate company had no relationship with Welch and did not provide services to his employer.
Between 2021 and 2024, Welch used company credit cards to make payments to accounts he controlled, transferring approximately $879,175, prosecutors said.
When the company attempted to verify the charges, Welch provided false or misleading information and submitted phony invoices designed to resemble those from the legitimate vendor. In 2023, when an accounting employee identified personal charges on his credit card, Welch claimed they were inadvertent and said he would repay the company. Prosecutors said he did not repay the charges and continued the fraudulent activity.
On Jan. 19, 2024, company employees confronted Welch about the vendor charges. After he again claimed the vendor was legitimate, the company fired him.
In total, between 2017 and January 2024, Welch made at least 250 fraudulent charges to the third party vendor accounts he controlled, at least 140 unauthorized retailer purchases using the company credit card and at least 100 fraudulent purchases through the company’s Amazon account, according to prosecutors. While Welch profited about $950,000, the total loss to the company was approximately $982,520 due to transaction fees.
W. Mike Herrington, special agent in charge of the FBI Seattle Field Office, said Welch abused his position of trust.
“As an information technology manager, Mr. Welch held a position of trust with his employer which allowed him access to business accounts and the company credit card,” Herrington said. “Welch betrayed that trust by stealing almost $1 million from the company through years of fraudulent transactions for his own personal gain. Despite being confronted about his illicit expenditures multiple times, Welch disguised his schemes with false documents or by saying he didn’t intend to make the charges. When such theft occurs, the FBI diligently follows the money to ensure fraudsters are held accountable for their crimes.”
Welch agreed to make full restitution to the company.
The case was investigated by the FBI and prosecuted by Assistant United States Attorney Dane A. Westermeyer.
