ORANGE COUNTY DISTRICT ATTORNEY

NEWS RELEASE

TONY RACKAUCKAS, District Attorney
 
 

Susan Kang Schroeder, Chief of Staff 
Office: 714-347-8408 
Cell: 714-292-2718

ORANGE COUNTY DISTRICT ATTORNEY<h3>NEWS RELEASE</h3>TONY RACKAUCKAS, District Attorney

Michelle Van Der Linden,Spokesperson
Office: 714-347-8405
Cell: 714-323-4486


 

ORANGE COUNTY DISTRICT ATTORNEY<h3>NEWS RELEASE</h3>TONY RACKAUCKAS, District Attorney

 

Case # 17HF1607

Date: December 7, 2017

VICE PRESIDENT OF FINANCE FOR URBAN DECAY CHARGED WITH GRAND THEFT AND MONEY LAUNDERING FOR TRANSFERING OVER $1 MILLION FROM COMPANY TO PERSONAL ACCOUNTS

SANTA ANA, Calif. – The vice president of finance for Urban Decay was charged today with grand theft and money laundering for transferring over $1 million from the company to his personal accounts through fictitious businesses.

Defendant

Charges

Maximum Sentence

Court Date

Ranjeet Reddy Paladugu, 40, Irvine

Charged today with the following felony counts:

  • (2) Grand theft
  • Money laundering

Sentencing Enhancements

  • Aggravated white collar crime over $500,000
  • Property loss over $200,000

13 years and four months in state prison

Continued arraignment

Dec. 12, 2017, 8:30 a.m.

Department H-7, Harbor Justice Center, Newport Beach

Bail: $1.197 million

Circumstances of the Case

  • At the time of the crime, Paladugu was employed as the vice president of finance for the cosmetics company Urban Decay in Newport Beach.
  • Prior to July 17, 2017, the defendant is accused of creating fictitious business accounts at various banks with names similar to those of Urban Decay’s business partners to avoid detection.
  • On July 17, 2017, Paladugu is accused of using his position at the company to authorize a $598,500 transfer from Urban Decay to one of his fictitious business accounts, then transferring the funds to his personal bank account.
  • On Aug. 18, 2017, Paladugu is accused of authorizing a second $598,500 transaction from Urban Decay to a different fictitious company he created.
  • Weeks later, Paladugu is accused of canceling the second transaction and wiring the money back to the Urban Decay account.
  • A bank noticed the suspicious activity and alerted Urban Decay corporate security, who contacted the Newport Beach Police Department (NBPD).
  • NBPD investigated this case and arrested Paladugu on Dec. 5, 2017.

Prosecutor: Deputy District Attorney Nagy Morcos, Major Fraud Unit

 



###