OAKLAND – A 52-year-old Danville woman will serve nearly two years in prison for embezzling over $1.7 million from her former employer, Men’s Wearhouse, and its parent company, Tailored Brands, the U.S. Attorney’s Office announced Tuesday.
Gina Suzanne Lonestar’s 22-month sentence comes after she pleaded guilty to one count of wire fraud in May, prosecutors said in a news release. U.S. District Court Judge Jon S. Tigar ordered Lonestar to begin serving her sentence on Jan. 5, 2024.
The scheme started in December 2010, when Lonestar was working as a director in the facilities department of Men’s Wearhouse. Prosecutors said Lonestar created a phony vendor and then submitted and approved invoices claiming that the vendor was performing inspections and handyman work at stores throughout the state.
Over the course of eight years, Lonestar defrauded Men’s Wearhouse and Tailored Brands of more than $1.7 million, which was paid to her joint checking account, prosecutors said. During that time, she was promoted to senior director of facilities and corporate services and then to vice president of construction, maintenance and facilities.
Prosecutors said Lonestar had the authority in all her roles to approve invoices for work done by vendors.
The scheme ended in 2019 when it was detected by an internal audit, prosecutors said.
In September 2022, a federal grand jury indicted Lonestar on six counts of wire fraud. Prosecutors said all but one of the counts was dismissed as part of her plea agreement.
In addition to the prison sentence, Tigar ordered Lonestar to pay a $1,736,216 forfeiture money judgment and to serve three years of supervised release after she leaves prison. Tigar also set a hearing for Dec. 1 to determine issues regarding restitution.