STOCKTON, CA – On Wednesday, May 17, 2017, in San Joaquin Superior Court before Judge Ron Northup, Sandra Vallerga Marchman, 52, pled Guilty to Felony Grand Theft and admitted sentencing enhancements of over $65k and over $100K of losses in a 2010-2014 theft from an elderly and disabled Stockton Resident. Marchman met the victim while in a Real Estate Transaction and agreed to work with him by managing a house flipping enterprise called Diamond Star Enterprises, LLC, funded with the victim’s savings and credit.
The victim fell seriously ill and was hospitalized repeatedly and put under treatments. Marchman was an authorized signer on his checking and credit card accounts and at some point was designated to receive the bank statements as well. When the victim eventually obtained a remission in his illness in 2015, he discovered his funds gone and the credit card maxed out and closed. The victim was without records to determine what had happened and was not able to obtain an accounting from Marchman.
Bank of Stockton assisted their client in recreating 5 years of his checking and credit card statements. These records were taken from the victim to Stockton/San Diego Forensic Certified Public Accountant Steven Hoslett, to determine what had happened to his capital and the $25,000 credit card line of credit that was depleted. The resulting report by CPA Hoslett documented $148,413.02 in losses to the Victim from Sandra Marchman’s personal expense spending on travel & entertainment and household expenses; clearly unrelated to the house flipping enterprise she was to conduct for the victim.
The Steven Hoslett CPA report was then used by the San Joaquin Sheriff’s Detectives to arrest and confront defendant Sandra Marchman.
Marchman was arrested by the Sheriff, arraigned in court on Theft Charges on May 17, 2017, and pled guilty today. Judge Ron Northup ordered Marchman released on her own recognizance pending a Probation Report to be returned to the court at the next court date of August 17, 2017 at 8:30 am in Dept. 7-C of the new Stockton Courthouse.
Marchman will be sentenced later this year and faces up to 5 years in state prison at sentencing, with the exact term depending on her cooperation and her making pre-sentencing restitution payments. She will be ordered to repay the victim a total of $153,025.52 (which includes the $25,251.71 due to Bank of Stockton on the victim’s credit card & additionally $4612.50 in accounting fees).
District Attorney Tori Verber Salazar continues to stress her offices’ concern that elderly residents be cautious in managing their life savings, and that her office will aggressively prosecute those who steal from Elders. Businesses, in general, are advised to always have bank statements go directly to someone other than the employee or associate who is spending the money or handling the bookkeeping. The District Attorney remains committed to working closely with the Sheriff and the Police Agencies to quickly and forcefully prosecute Elder Financial Abuse and Financial Crimes of this nature.