Crime & Safety

Former RSM Man Accused of Fraud, Embezzling $822,000

James Harry Fluch faces 156 felony counts that could land him in prison for 114 years if is convicted.

An accounting consultant is accused of embezzling more than $822,000 from an Irvine communications company and spending the money on personal expenses and a lavish lifestyle.

James Harry Fluch, 64, formerly of Rancho Santa Margarita, is charged with 156 felony counts of computer access and fraud with sentencing enhancements for property loss of more than $200,000 and aggravated white collar crime of more than $100,000, according to the Orange County district attorney's office.

According to online court records, Fluch faces 632 various counts. If convicted, Fluch could face a maximum of 114 years and eight months in state prison.

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Fluch was arrested at his current residence in Portland, OR, on May 9. He is scheduled to be arraigned June 10.

Fluch worked as an accounting consultant for a longtime friend’s business, Check Point Communications in Irvine, from 1990 to 2011. Fluch managed the company’s bank accounts, payroll and bookkeeping.

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According to the district attorney, between Jan. 19, 2006, and Jan. 14, 2010, Fluch embezzled company funds by transferring money out of Check Point’s escrow account into his personal bank account 156 times and hiding the theft by over-reporting payroll. Prosecutors say he used the money to pay off his seven credit cards, which were used at restaurants and bars, country clubs, and for auto and health insurance, a Fastrak transponder, gas, cable television and other bills.

Prosecutors say Fluch made purchases with the cards at such retailers as Nordstrom, Roger Dunn Golf, Lowe’s, Home Depot and Radio Shack. Prosecutors also say he used Check Point money to pay off credit cards used to finance trips to Nevada, Texas, Florida and Washington, including airline tickets, food, car rentals, casinos, and entertainment. He also is accused of using the money from the company to cover cash advances on the credit cards and about $13,000 to pay off his wife’s American Express card.

An audit of the accounts in January revealed that hundreds of thousands of dollars had been transferred out of a company escrow account and into Fluch’s bank account. The Irvine Police Department investigated the case.

Deputy District Attorney Matt Lockhart of the Major Fraud Unit is prosecuting this case.


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