A former California resident who once kept the computers running at a Kent energy manufacturer is now headed to federal prison. Federal investigators say the information technology manager quietly siphoned nearly $1 million from his employer over several years, masking the theft with bogus invoices, manipulated vendor accounts and personal spending on company payment systems. The case has turned into a cautionary tale about how much damage one insider with access can do.
According to FBI Seattle, the defendant, identified in court filings as Paul Joseph Welch, used his access to business accounts and a corporate credit card to fuel a long-running fraud for personal gain. The bureau said Welch was sentenced Thursday in federal court in Seattle in connection with the yearslong scheme agents investigated.
Plea and charges
Welch pleaded guilty in May 2025 to wire fraud after prosecutors said he ran three separate schemes that together siphoned roughly $950,000 from Algas‑SDI, the Kent energy manufacturing company where he worked, according to a press release by the U.S. Attorney’s Office for the Western District of Washington. As part of his plea, he agreed to make full restitution to the company.
Scheme and scale
Prosecutors say the theft began with unauthorized purchases on the company’s Amazon business account and expanded into personal charges on company credit cards and payments disguised as invoices to a sham vendor. Investigators tied at least 250 fraudulent transactions to Welch's schemes and estimate the company's loss, including fees, at about $982,520, a pattern first detailed when he was indicted.
Legal consequences
Wire fraud carries a statutory maximum of 20 years in federal prison and a $250,000 fine, the U.S. Attorney’s Office notes, although prosecutors told the court they would recommend no more than 27 months for Welch. The office’s release also says Welch has agreed to repay the company in full as part of resolving the criminal case.
Investigation and next steps
The FBI led the investigation and the case was prosecuted by Assistant U.S. Attorney Dane A. Westermeyer, according to earlier coverage of the case. Court filings will spell out the final judgment and the timetable for restitution to Algas‑SDI.
