Cindy Zurawski Babbitt, a 57-year-old chief financial officer from Stafford, Virginia, pleaded guilty on Tuesday, 7 July 2026, to wire fraud after embezzling more than $1.5 million (N2.13 billion) from the audio visual and information technology company in Lorton where she worked.
CFO Stole Over N2 Billion for Luxury Shopping
Court documents filed in the Eastern District of Virginia revealed that Babbitt exploited her position as CFO between December 2018 and December 2022, using her authority over the company's bank accounts to quietly drain funds for personal gain. The total amount stolen came to $1,561,841.30 (N2,136,594,847.47). She now faces up to 20 years in prison.
How Babbitt Carried Out the Scheme
Prosecutors outlined three methods Babbitt used to siphon money from her employer. She issued at least 44 cheques totalling $82,117 (N112,318,272.30), drawn on the company's account and made payable to herself and her husband, signing them as the company's authorised representative before depositing them into her own account. She also fraudulently approved 49 payroll reimbursements totalling $142,401 (N194,785,233.79) in her own name.
According to a post published by the United States Attorney's Office, Eastern District of Virginia, the bulk of the theft came through at least 428 wire transfers totalling $1,337,323.30 (N1,829,491,341.37), moved directly from the company's business checking account to her personal bank account. None of the transactions were linked to any legitimate business expenses.
Funds Spent at Luxury Retailers
The embezzled funds were spent at high-end retailers including Tiffany & Co., Saks Fifth Avenue, Versace, Burberry, Balmain, Cartier, and Louis Vuitton. Babbitt used the stolen money to finance a lavish lifestyle, purchasing luxury goods and accessories over the four-year period.
Sentencing and Investigation
The case was investigated and is being prosecuted by Assistant U.S. Attorney Madison Mumma. Babbitt is scheduled to be sentenced on 10 November 2026 and faces a maximum sentence of 20 years in prison. A federal district court judge will determine the final sentence after weighing the U.S. Sentencing Guidelines alongside other statutory factors.
