Gina Suzanne Lonestar, 52, a former executive at Men's Wearhouse and its parent company Tailored Brands, was sentenced to 22 months in federal prison after being found guilty of embezzling over $1.7 million from the company, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. It all began in December 2010 - a scheme that would last for nearly a decade and remain undetected until 2019, when an internal audit exposed the fraud. According to the Department of Justice, Lonestar devised a scheme to create a fake vendor, submit and approve false invoices to the accounts payable department, and ultimately defraud her employer of vast sums of money.
Lonestar's journey to the echelons of corporate power began with her position as Director in the Facilities Department of Men's Wearhouse, where she wielded the authority to approve invoices for work done by vendors. Over time, she was promoted to Senior Director of Facilities and Corporate Services and then to Vice President of Construction, Maintenance, and Facilities, in all of which she continued to maintain the authority to approve invoices. Lonestar pleaded guilty to the charge on May 19, and her sentence was handed down by the Hon. Jon S. Tigar, United States District Judge.
Perpetrating this fraud, Lonestar had created a fake vendor, who she claimed was a sole proprietorship associated with a family member. This fictitious entity was then used to produce and approve invoices for Men’s Wearhouse stores throughout California, claiming they were for tasks such as inspections and handyman work, reports the Department of Justice. Lonestar admitted that the vendor did not exist and the family member with whom she co-owned the company performed none of the work for which she provided invoices. Over the course of eight years, the money siphoned off from the company amounted to over $1.7 million and was funneled into her joint checking account.
On September 8, 2022, Lonestar was indicted by a federal grand jury and charged with six counts of wire fraud, a violation of 18 U.S.C. § 1343. During her sentencing hearing, Lonestar pleaded guilty to one count, and the court dismissed the remaining counts, in accordance with her plea agreement.
In addition to the 22-month prison sentence, Judge Tigar ordered Lonestar to pay a forfeiture money judgment and serve three years of supervised release which will begin after she leaves prison. Lonestar is scheduled to begin serving her sentence on January 5, 2024. A hearing for determining issues regarding restitution has been scheduled for December 1. The case is being prosecuted by Assistant United States Attorney Noah Stern, with assistance from Elizabeth Kim and Kathleen Turner, and as a result of an investigation by the FBI.
