LOCAL MAN SENTENCED TO MORE THAN 2 ½ YEARS FOR EMBEZZLING
OVER $367,000 FROM ALABAMA STATE UNIVERSITY

MONTGOMERY, ALABAMA— Leura G. Canary, United States Attorney for the Middle District of Alabama, announced today that Judge Mark E. Fuller sentenced James Michael Hinson, age 40, of Dothan, Alabama, to 33 months in federal prison on a wire fraud conviction arising out of Hinson’s embezzling over $367,000 from Alabama State University (“ASU”) in Montgomery. Hinson was also sentenced to three years supervised release, special conditions to include providing any requested financial information; no new credit without approval; and DNA testing; $100 assessment fee and restitution of $367,730.82 without interest.

Hinson had pled guilty to an information on May 31, 2007. According to the plea agreement and information, ASU employed Hinson as a Senior Accountant. On February 2, 2005, Hinson opened an account at Wachovia Bank in the name "ASU Auxiliary Accounting Club" using ASU's taxpayer identification number, listing himself as the president, treasurer, and authorized signatory, and using his home address in Dothan as the address of the club. In fact, there is no such club, and ASU never authorized Hinson to open this account. From February 17, 2005 through April 3, 2007, Hinson diverted to himself checks payable to ASU totaling approximately $367,730.82, and he deposited those checks into the account he had opened at Wachovia. The embezzled funds included checks payable to ASU by the State of Alabama, by businesses who owed money to ASU based on vending machine proceeds, and by persons who had purchased tickets to ASU sporting events. HIinson used the embezzled funds to pay personal expenses, including making credit card payments via interstate wire transfer.

Hinson remains free on a $25,000 unsecured bond. Judge Fuller ordered him to report to prison on February 25, 2008.

The case was investigated by the Federal Bureau of Investigation, the Alabama Bureau of Investigation, and the Alabama State University Police. The case was prosecuted by Assistant U.S. Attorney Andrew O. Schiff.