Lynn Espejo Sued by Her Former Employer

by Arkansas Business Staff  on Monday, Jun. 13, 2011 12:00 am  

(Update, March 13, 2013: In July 2012, the U.S. Attorney's Office in Little Rock dismissed the 59-count criminal indictment against Lynn Espejo, the former medical office manager accused of embezzling more than $610,000. Also, the doctors doing business as Practice Management Services Inc. have similarly dropped their parallel civil suit against Espejo and her husband, North Little Rock CPA Pancho Espejo.)

Original story:

Lynn Espejo, a former medical office manager who is facing a 59-count federal indictment for wire fraud, now is being sued by her former employers.  

Practice Management Services Inc. and Blandford Medical Services Inc., both of Little Rock, are suing Espejo and her husband in connection with the alleged fraud, totaling $611,000.

Espejo's husband, Pancho Espejo, is a CPA and hasn't been charged in connection with the fraud allegations.

The lawsuit mirrors the indictment handed down in March, saying that between May 2007 and September 2010, Lynn Espejo allegedly overpaid vendors and transferred the refunds to her personal bank account. She allegedly tried to cover her tracks by creating bogus monthly financial records, the lawsuit said.

The lawsuit said that the Espejos used her employers' credit cards to buy electronics, toys and "large amounts" of office supplies that were delivered to her husband's CPA firm but charged to the plaintiffs.

The plaintiffs said the Espejos have cost them more than $1 million in damages.

The companies also have asked a judge for an order to prevent the Espejos from selling or transferring the title of their 4,000-SF Sherwood home, which they say was paid for "as a result of fraudulent activity."

Lynn Espejo referred requests for comment to her attorney, Patrick James of Little Rock. James didn't immediately return a message left Thursday afternoon.

In the court file, James said that he is representing Pancho Espejo and the allegations in the lawsuit are "strongly disputed. We believe these allegations were intentionally and purposely designed to cause maximum harm to" the Espejos.

 

 

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