A former payroll manager at the Art Institute of Chicago, Michael Maurello, has been charged with fraud for allegedly stealing over $2 million from the museum over a period of 13 years.
The indictment states that Maurello redirected payments from the museum’s payroll system to his personal bank account at JP Morgan Chase and classified them as payments to other staff members or former employees.
These fraudulent payments, which included paid time off and deductions for life insurance premiums, payroll taxes, and tuition reimbursement, were made between 2007 and 2020.
In January 2020, when the Art Institute’s assistant controller questioned Maurello about one of the suspicious payments, he claimed it was a test of the payroll system.
However, according to a statement from the U.S. District Attorney’s office, Maurello later altered and edited a report from the museum’s payroll system in an attempt to conceal the misappropriated funds, including by falsifying employee names, dates, and dollar amounts of the payments.
As a result of this case, the Art Institute has implemented new measures to prevent payroll theft in the future, and the missing funds are being recovered through insurance.
A spokesperson for the museum said that the financial loss was significant but that it did not impact staffing, payroll, scholarship funding, programming or other financial aspects of the organization.
Maurello faces several charges, including wire fraud and money laundering, if convicted, he could face a maximum penalty of 20 years in prison and a fine of up to $250,000.
He was also ordered to forfeit any proceeds from the fraud and pay restitution to the Art Institute of Chicago.
The investigation is ongoing, and the court will decide the guilt of the defendant. The Art Institute of Chicago has declined to comment any further on the matter.
Michael Maurello, the 56-year-old former payroll manager at the Art Institute of Chicago, has been indicted on four federal charges, including two counts of wire fraud and two counts of bank fraud.
If convicted on all charges, he could face a maximum sentence of 100 years in federal prison, as the maximum sentence for each count of bank fraud is 30 years and for each count of wire fraud is 20 years.
According to the indictment, if convicted, Maurello would have to forfeit any assets he purchased with the stolen funds, which is estimated to be at least $2.3 million.
His arraignment, the first court appearance following his arrest, has not been scheduled yet.
Maurello’s alleged criminal activity was discovered by the Art Institute of Chicago in January 2020, and he was subsequently terminated from his position.
The museum has implemented new procedures to detect any future payroll theft and is recovering the missing funds through insurance.
The U.S. District Attorney’s office is continuing to investigate the case, and it is unclear when Maurello will be scheduled to appear in court for his arraignment.
The Art Institute of Chicago has not made any further statements on the matter.
Former payroll manager Michael Maurello has been indicted on four federal charges, including two counts of wire fraud and two counts of bank fraud, for allegedly stealing over $2 million from the Art Institute of Chicago over a period of 13 years.
The investigation is ongoing; if convicted, he could face a maximum sentence of 100 years in federal prison and forfeiture of any assets purchased with the stolen funds.
The Art Institute of Chicago has taken steps to prevent similar incidents in the future and is recovering the missing funds through insurance. The case will be closely watched by the authorities and the public as it unfolds.
