Paso Robles bookkeeper embezzled $474,000 from gravel business. Now she’s headed to prison
A former bookkeeper of a Paso Robles sand and gravel company was sentenced to five years in state prison Monday for embezzling nearly a half-million dollars from the business’ owners over three years.
In November 2018, the San Luis Obispo County District Attorney’s Office charged Diana Louise Russell with three felony counts of theft from an elder and two counts of grand theft by embezzlement. The charges carried sentencing enhancements for committing aggravated white collar crime and for stealing more than $200,000.
It was alleged that while Russell worked as a bookkeeper for Viborg Sand & Gravel, Inc., she stole roughly $474,000 from two members of the Viborg family, who were over the age of 65 at the time.
“The breach of trust that occurs in cases like this is far-reaching and profound,” District Attorney Dan Dow said in a news release Monday. “It is particularly devastating for elder victims who are vulnerable and rely on someone like Russell to help them manage their affairs.”
Russell, 43, pleaded guilty Jan. 23 to two felony charges of theft from an elder and admitted the enhancements, in exchange for the dismissal of the remaining charges.
On Monday, Superior Court Judge Craig van Rooyen sentenced Russell to a total of five years in state prison. Russell will serve at least half of that time due to time-served and other various credits, her attorney, Dave Vogel, said following the sentencing.
Russell will also be on the hook for a yet-to-be-determined amount of restitution, according to court records. A county Probation Department report recommends that Russell pay a total of $473,763 in restitution to a member of the Viborg family.
“Ms. Russell has expressed her remorse over the situation and hopes to repay what she’s taken,” Vogel said.
According to the Probation Department’s pre-sentencing report, a police officer took an embezzlement report from Viborg Sand & Gravel on June 23, 2018, after a manager discovered several suspicious transactions dating back to 2015.
The manager told police he found several forged checks in Russell’s name and approximately $421,000 in unauthorized transactions.
Russell initially denied any wrongdoing, the report states, but she ultimately “stated she began purchasing things from the company’s account and giving it away to charity at the bequest of (a member of the Viborg family).”
The District Attorney’s Office in its news release said that Russell bought a diamond ring with some of the stolen funds.
In an interview with a probation officer, Russell allegedly said, “I know I have to pay for what I did. I know it was wrong ... I’m so disgusted with myself,” according to the report.
She reportedly told the officer that she accepts prison and looks forward to her release so that she can pay restitution to the Viborgs.
In its assessment, the Probation Department found that Russell’s risk to re-offend is low, while her ability to repay restitution is “conceivable.”
“Unfortunately, the betrayal of trust, the amount of financial loss, and the impact her actions have had on the victim are significant and will no doubt last a lifetime,” the report reads.
Russell has been remanded to the custody of San Luis Obispo County Jail, where she awaits transfer to California Department of Corrections and Rehabilitation officials for prison placement.
According to court records, van Rooyen made a recommendation to state officials that Russell serve her sentence at the California Institution for Women in Corona.
A restitution hearing has been scheduled for May 6.
Correction: This article has been updated to correct an error related to Russell’s plea and to clarify the nature of the offense.
This story was originally published February 4, 2019 at 3:00 PM.
