Bronze Body burned by embezzlement
For more than a decade, Sabrina Frederick Gallagher was a trusted employee of Bronze Body, serving as office manager for the Southeast Texas tanning company owned by Charlie Dixon for more than 30 years – that is, until Gallagher allegedly stole close to $1 million, Dixon claims.
Gallagher, a 49-year-old Beaumont/Fannett resident, was indicted and arrested for first-degree felony theft Nov. 9, 2022, and released on $35,000 bond less than 30 minutes later.
According to the probable cause affidavit for her arrest, Gallagher was responsible for payroll and bookkeeping for Bronze Body. Dixon provided the Beaumont Police Department and Jefferson County District Attorney’s office with reports from a forensic accountant proving Gallagher stole $442,262 through payroll by overpaying herself and writing numerous unauthorized payroll checks.
“It was a nightmare,” said Dixon. She had our entire QuickBooks account changed into her name so that I didn’t have access to view any of the records initially.
Dixon said evidence will show Gallagher stole from his company for more than 6 years.
“I have a handful of people that have been with the company for nearly 20 years; I pay well and I’m a good and fair boss,” said Dixon. “I have a staff of 40, but I trusted her, I know her and her husband, Mark, and I thought we were friends. I guess that was my downfall.”
Dixon said the theft was discovered after he secured an SBA loan during the COVID-19 pandemic, and noticed the money just disappeared. Dixon said Gallagher, who was a part-time employee being paid $18 an hour for 15 to 20 hours a week, was paying herself $180,000 a year in payroll alone.
“When I got the SBA loan, she got sloppy and started taking money a lot of different ways, and that’s what alerted me,” said Dixon.
In addition to the payroll theft, Dixon reports an additional $326,6000 stolen through other unauthorized transactions. For example, he said he noticed school supplies were purchased on his Office Depot card, which threw up a red flag – given he doesn’t have children.
Dixon said the blackmail letter claimed that one of the ways he didn’t notice money missing is that Gallagher was holding back a portion of the company’s tax payments, and the correspondence included threats to reveal the shortened tax payments to the IRS.
“I’m glad she mentioned that in the blackmail letter – tipping me off to that mess I had to clean up,” said Dixon.
Dixon said that, in addition to the money stolen, this has cost him upward of $50,000 in forensic audit services and attorneys’ fees.
In an effort to bring charges forward and potentially recoup the stolen funds, Dixon hired EKC Edgar Kiker & Cross CPAs & Consultants to evaluate the company finances and determine the amount and manner in which Gallagher stole from him.
According to the company’s handbook, it was the policy of Bronze Body to offer health insurance to eligible employees and pay 50% of the employee portion of the Blue Cross Blue Shield Group health insurance premiums, while the employee would be responsible for 100% of the spouse or dependents’ coverage. It was discovered that, in 2018, the company’s portion of Gallagher’s premium was $3,836.28 and the employee portion was $19,642.62 resulting in a total premium of $23,478.90 since Gallagher had added her spouse and children to the plan. However, Gallagher had deducted just $982.80 from her payroll in 2018 for her portion of her health care. which resulted in the company overpaying for her insurance in the amount of $18,659.82 in 2018; $21,281.37 in 2019; and $21,710.94 in 2020.
It was found that Gallagher also took at least two unauthorized cash withdraws in 2020 totaling $12,000, and deposit records audited against cash deposited in 2020 resulted in a discrepancy of $13,971.70 in at least one identified instance.
An investigation by Wathen DeShong & Juncker LLP found evidence that Gallagher overpaid herself by more than $400,000 through payroll from 2014 to 2020.
Records also indicate that Gallagher paid herself $6,700.15 while the company was closed during the pandemic, while simultaneously receiving unemployment benefits. Gallagher had set up multiple payroll accounts in her own name.
Gallagher is on Jefferson County Criminal District Court Judge John Stevens’ trial docket for July 21 and will be represented by local defense attorney Ryan Gertz.