Carroll ordered to pay $455,000 in restitution
William F. Carroll, former executive director of the Portable Sanitation Association International, will spend 600 days in jail, spaced over 10 years, as part of a sentence for several felony convictions involving money stolen from the trade group.
On March 26 in Minnesota’s Hennepin County Circuit Court, Carroll was ordered to spend 60 days per year for the next 10 years confined in the county workhouse, with the first stretch starting after the sentencing hearing. Carroll, 66, pleaded guilty to six counts of felony theft by swindle last December after being charged with taking hundreds of thousands of dollars from the PSAI over several years.
Carroll was sentenced to a total of 68 months in state prison, but that sentence was stayed for 10 years as long as he follows the workhouse incarceration program and a list of 13 conditions of probation. Those include paying restitution of $455,899.15, avoiding alcohol and controlled substances, submitting to random testing, chemical dependency evaluation and treatment, and staying away from liquor stores, taverns and gambling establishments.
A spokesman for the courts said Wednesday that Carroll is able to challenge the amount of the restitution.
Carroll faced a maximum sentence of up to 20 years in prison and/or a $100,000 fine for each count.
Former PSAI assistant Cynthia Rudiger, 69, also faces six felony charges and has a trial date set for May 2014.
According to criminal complaints filed in the Fourth Judicial District court, Carroll took hundreds of fraudulent disbursements from PSAI accounts to support spending on gambling and drinking. Records indicate Carroll took $32,000 in transactions at or immediately outside a casino. The payroll audit of PSAI revealed more than $350,000 had been taken over a three-year period.
Rudiger received thousands of dollars in cash payments authorized by William Carroll, then concealed the payments by coding them for “insurance’’ or “payroll adjustment,’’ according to the complaints.
Carroll resigned his position with the PSAI in April 2012, and his wife, D. Millicent Carroll, former PSAI industry/regulatory standards director, and Rudiger were fired shortly afterward. Millicent Carroll has not been charged in connection with the missing funds. The three were sued by the PSAI in civil court alleging that the trio took $650,000 to $1 million from the organization, but that case is dormant.
In the criminal complaints, Carroll said he directed Rudiger to code improper transactions so they would appear legitimate to the association’s accounting firm. He told police he took most of the money for gambling and alcohol. Rudiger told police she was aware of Carroll’s actions, but thought it was OK because he was paying the money back. Records indicate Carroll returned a small fraction of the money taken.
Carroll authorized payments to Rudiger coded under insurance, and Rudiger told police she thought they were justified because she had gone without a salary increase. She admitted she didn’t report those payments on her income tax returns.
PSAI executive director Karleen Kos said the association is focusing on the future.
“We pursued the issue on behalf of our members and on behalf of doing what’s right. The court has made its decision and the organization has moved on,’’ she said.