STOCKTON, CA – On May 8, 2017, San Joaquin County Sheriff’s Detectives arrested Sandra Vallerga Marchman, 53, a Ripon, CA resident, at her job at a mortgage firm in Stockton on an arrest warrant issued by Superior Court for 3 Felonies, consisting of 2 Embezzlement Charges and an Elder Abuse Charge involving a Stockton business called Diamond Star Enterprises, LLC, and its owner. It is alleged that the elderly victim met Ms. Marchman during a real estate transaction and was persuaded to engage her to operate a house-flipping business which was named Diamond Star Enterprises. Marchman was made an authorized signer on the Bank of Stockton checking account and credit card set up by the elderly and disabled victim and was to oversee the house-flipping activity for the company.
Ms. Marchman is accused in the first Embezzlement Charge of misusing her signing authority on the business checking account at Bank of Stockton to take $101,541.25 in 85 Unauthorized Check Disbursements to herself in the years 2010 through 2014. In the Second Count of Embezzlement from Diamond Star, Ms. Marchman is accused of taking $46,871.77 in 347 Credit Card Charges against the Diamond Star’s Business Credit Card for her personal travel, entertainment and living expenses in the same years, 2010-2014.
The elderly victim is reported to have become gravely ill during this time and the business was closed. At a later date, when he recovered his health, it was discovered that the company credit card was maxed out and unpaid, and the capital of the company in the bank account was completely gone. The victim then had to assemble bank records for the years in question and asked for assistance at the San Joaquin County Sheriff’s Office. Forensic CPA Steven Hoslett was retained to examine the records and to report on the losses.
These charges are at this time just allegations. Ms. Marchman is presumed to be not guilty of these charges unless and until a conviction were to result in court proceedings. She is expected to be arraigned in Superior Court Tuesday, May the 9th, at 1:30 p.m. in Department 35. Bail has been set at $300,000.00.
If any members of the public have information of Ms. Marchman’s activities in this matter, please call Sheriff’s Detective Marcus Smith at 209-468-4425.
The District Attorney urges local businesses to impose strong checks and balances in their businesses and to always require a second person to see and approve Checking and Credit Card Statements. Most cases that we see are in instances where a single person was trusted to operate business accounts with no regular oversight or audits.