STOCKTON — San Joaquin County Sheriff's Office investigators say Sandra Marchman spent hundreds of dollars at Domo's Sushi, Podesto's Grocery Store, Victoria's Secret and Lane Bryant are just a few of the establishments where she claims she stole the money from a seriously ill elderly man.
“He nearly died, but recovered enough to ask what happened and then his bank notified him that his credit cards were maxed out and he was behind on payments,” said Assistant District Attorney Steven Taylor.
On Tuesday, Marchman, a former real estate agent who is now in jail, appeared in a San Joaquin County courtroom. Her lawyer asked that Marchman be released without bail, but the judge denied the request.
Marchman is accused of stealing about $150,000 from his former business partner, Gary Gerlach, 69. Gerlach's forensic accountant said he was unable to attend Tuesday's hearing due to ill health.
“This case was a real struggle because of his health,” said Steve Hoslett, a San Diego-based forensic accountant.
Hoslett said Gerlach had noticed red flags for several years but was unable to hire him until a month ago. The DA's office added that Gerlach also had difficulty obtaining bank statements because Marchman was the only person named on the business accounts.
Investigators said Gerlach and Marchman first worked together in 2010, flipping homes in Stockton for a company called Diamond Star Enterprises. Two years later, Gerlach became seriously ill and had to undergo chemotherapy and dialysis, and asked Marchman to stop operating the business.
“He never looked at his bank account. He thought all the money was still there,” Hoslett said.
But investigators say that's not what happened: Marchman continued to use company bank accounts and credit cards to rack up personal expenses.
“Trips to Laguna Beach and Newport Beach, buying plane tickets, shopping at Lane Bryant, Victoria Secret, Vina, Dillard's, etc,” Hoslett explained.
When investigators asked her why she did this, she said her daughter was “sick and had been hospitalized multiple times,” according to court documents obtained by FOX40.
“The bills are not worth it,” Taylor said. “They're for things like dining out, household items, things that have nothing to do with flipping a home.”
Taylor said he had seen too many cases like Marchman's and urged business owners to pay close attention to their finances.
“Make sure your bank statements go to someone other than the person spending the money,” he said.
Both Taylor and Hoslett advise business owners to take out insurance to cover potential embezzlement, known as employee fraud insurance. Marchman is due to appear in court again next week, and Taylor said he has asked the judge to expedite the proceedings because the victim is seriously ill.