NORFOLK, Va. – A Virginia Beach woman was sentenced today to four years in prison on two counts of wire fraud after she committed embezzlement and COVID-19 schemes that resulted in more than $1 million in losses.

According to court documents, Maria Gene Reich, 45, was president of ASOC. Inc. d/b/a On Call Accountants (OCA), a Virginia Beach firm that provided bookkeeping, accounting and payroll services to small business clients. Beginning in February 2012, Reich and On Call Accountants performed the bookkeeping for a family-owned business, identified in court documents as Company A, which manufactured spices. Reich prepared checks and scheduled electronic payments on behalf of Company A to pay the company’s bills.

During most of the period in which she performed services for Company A, Reich did not have signing authority over the company’s financial accounts, but she did possess a stamp with the signature of Company A’s owner, which she used to write checks for Company A’s business expenses. Reich also had online access to Company A’s financial accounts, allowing her to view account balances, transfer funds, and initiate electronic payments as needed.

Under Reich’s agreement with Company A, the maximum total compensation she should have received for services she provided to the company between January 2015 and December 2018 was $98,400. A financial analysis of Reich’s activities during that period revealed that Reich’s OCA business account received 270 payments totaling $596,418 from Company A’s accounts, including 138 checks and 132 electronic payments. Reich also used Company A’s funds to pay off her credit cards, which she used for a variety of personal expenses. The financial analysis showed that Reich made 366 payments totaling approximately $629,265 to her Capital One personal and business credit card accounts, using funds from Company A’s business bank accounts. Reich used Company A’s funds to pay for personal expenses, including dining, travel, entertainment, and retail purchases.

In total, Reich stole approximately $1,132,693 from Company A.

In March 2020, Reich applied to the Small Business Administration (SBA) on behalf of OCA for a $150,000 Economic Injury Disaster Loan (EIDL), requesting a $150,000 loan. The purpose of the EIDL program was to enable small businesses to meet financial obligations and operating expenses in light of the coronavirus pandemic. In the EIDL application, Reich confirmed that none of the EIDL funds would be used for non-business expenses. In May 2020, the SBA funded the loan.

In April 2021, Reich filed a request for a modification to her EIDL loan to increase the amount to $500,000. In July 2021, the SBA approved the modification and funded the loan for an additional $350,000. On August 3, 2021, a deposit of $350,000 was made by the SBA into OCA’s bank account, and Reich immediately transferred $150,000 to her personal bank accounts. On September 27, 2021, Reich withdrew approximately $93,416 from her savings account and used the money for a down payment on the purchase of a home in Virginia Beach, where Reich and her family continue to reside.

In addition to the down payment on the home, Reich also used the EIDL funds from that transfer to deposit money into her minor children’s bank accounts and to pay off her mortgages, credit cards, personal loans and life insurance.

Reich used the remaining EIDL money from the $350,000 EIDL loan to pay for: personal, household, and family expenses; payments on her credit card and PayPal accounts; home improvement and auto expenses; and food, grocery, and entertainment expenses.

In total, Reich illegally spent $249,102 of the EIDL funds she received.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Office, made the announcement after being sentenced by U.S. District Judge Elizabeth W. Hanes.

Assistant U.S. Attorney Elizabeth Yusi prosecuted the case.

A copy of this press release can be found on the website of the United States Attorney’s Office for the Eastern District of Virginia. Related court documents and information can be found on the website of the United States District Court for the Eastern District of Virginia or on PACER by searching for case number 2:23-cr-135.