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Roach Manufacturing Accuses Accountant of Embezzling $4.5M

2 min read

A family-owned manufacturing company in Poinsett County accused its longtime accountant of embezzling more than $4.5 million over a decade.

Roach Manufacturing Corp. of Trumann said in a lawsuit filed Thursday in Craighead County Circuit Court that Edward M. Cooper Jr., who worked for the accounting firm Osborn & Osborn CPAs PLLC of Jonesboro, allegedly forged checks from Roach’s account for “significant amounts” dating back to 2007.

Craighead County Circuit Judge John Fogleman issued a temporary restraining order Thursday against Cooper and Osborn & Osborn from destroying or altering records that show where Roach’s money went. Cooper also was ordered not to withdraw more than $150 a day from any of his financial accounts. 

The temporary restraining order will remain in place until a hearing on Roach’s motion for a preliminary injunction, which is scheduled for June 26.

Roach, which manufactures and sells conveyor systems and related products, had been using Osborn & Osborn since 1969. 

In the late 1970s or early 1980s, Cooper began working on the Roach account for Osborn & Osborn. 

“Cooper’s relationship with Roach over the years since the 1980’s has been based upon the highest degree of trust and confidence placed in Cooper by Roach,” according to an affidavit filed by Katelyn Furnish, whose grandfather, G.W. Roach Sr., founded the company. “Cooper had regular ongoing contact with Roach family members, shareholders and employees, visiting the Roach facilities at least once a week, and oftentimes more regularly.”  

Roach alleged in the lawsuit that sometime before 2007, Cooper had asked for a few more of Roach’s checks than were necessary to complete his duties.

The request didn’t set off any alarms, though.

“Cooper’s trust and relationship with Roach even reached the level that he began providing tax and accounting services to the individual family shareholders of Roach over the years,” Furnish said. 

It wasn’t until she took over the financial manager duties in the fall of 2017 that the alleged embezzlement would be exposed. Furnish asked Cooper for the company’s bank statements.

“Cooper was evasive in response to the request,” she said. “He never delivered the requested statements, although he continually promised that he would do so.”

Months passed and Cooper never delivered the documents she requested.

Furnish then looked up the statements online.

On May 16, she said she couldn’t reconcile the balance. And then she discovered that a check for almost $40,000 made payable to Cooper appeared to be forged. 

She said a further investigation found 70 checks, which were dated April 12, 2007, through April 16, and made payable to “Ed Cooper” were “signed with various forged signatures of officers of Roach,” Furnish said. The amounts total $4.5 million.

A person who answered the phone at Osborn & Osborn declined to comment Friday morning. 

Roach is suing Cooper for breach of fiduciary duty and taking its money. Osborn & Osborn also was named as a defendant and is being sued for fiduciary duty.

They have not filed an answer in the case as of Friday morning.

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