Man accused of embezzling more than $100,000 from Sharon company
May 1—SHARON — An employee of a Sharon steel fabricating company is accused of embezzling more than $100,000 from his employer.
Cody Nathaniel Rainey, 33, Jupiter, Fla., was charged by the Pennsylvania Office of the Attorney General of dealing in the proceeds of illegal activity, theft, receiving stolen property and access device fraud after allegedly embezzling from SSAB in Sharon.
In a criminal complaint filed by the attorney general's office, investigators outlined the case.
SSAB is headquartered in Stockholm, Sweden and is a highly-specialized steel company with three divisions — special steels, Europe and the Americas. SSAB has a location in Sharon for a small fabrication center that cuts and forms parts, including steel plates.
The company hired Rainey Jan. 18, 2022, as production manager, putting him in charge of planning and overseeing the fabrication process and managing employees.
In August 2023, an internal audit at the Sharon location showed that it had not received any scrap payments from American Iron and Metal in Cleveland. Company officials said it would have been unusual not to have any invoices or payments from AIM. The company has usually had one invoice per month for the sale of scrap.
SSAB officials found that a payment of about $72,226 made by AIM was not deposited into SSAB's bank account but were made into Rainey's personal account.
They also found several personal Amazon purchases including a 75" Samsung television made on Rainey's SSAB credit card for $4,436.
SSAB officials said that Rainey abruptly resigned from his position July 27, after the the company received notice that there would be an internal audit, investigators said.
A review of Rainey's bank accounts showed 16 checks totaling $65,306 from AIM Cleveland payable to SSAB were deposited into his accounts. Investigators also discovered that six additional checks from various companies for SSAB totaling $42,890 were deposited into Rainey's personal bank accounts from April 4, 2022, through Oct. 31, 2022.
Investigators found that all 22 checks were endorsed by Rainey before being deposited into his accounts. Investigators said Rainey used the money for purchases at bars and restaurants, gas stations, cycle sales, ATM withdrawals, airline tickets and credit card payments.
From February 2022 through June 2023 there were purchases on Rainey's bank accounts including in Alabama, Mexico, North Carolina, Florida, South Carolina and Colorado. Investigators said he traveled almost monthly, with the most frequented destination being Mexico. One of the checks was for a SSAB vehicle sold to a local car dealership.
Investigators said Rainey misappropriated a total of $109,371.82 from SSAB for his personal benefit without the knowledge of SSAB from April 4, 2022 through June 3, 2023.
A June 26 preliminary hearing is scheduled before District Judge Travis P. Martwinski of Sharon.
Follow Melissa Klaric on twitter @HeraldKlaric or email her at mklaric@sharonherald.com
