A Bloomington spa maker's longtime finance employee is accused of turning company checks into a $767,500 gambling bankroll, allegedly signing the owner's name and routing more than 100 payments to herself over nearly two years. The alleged scheme was uncovered after an audit, with investigators later finding freshly signed checks and casino-related records in her vehicle.
Keo Nang Xiong, 33, of Maplewood, was charged Monday with two counts of theft by swindle after investigators alleged she wrote 113 checks from Hot Spring Spas' account between August 2024 and July 2026. The Minnesota Star Tribune reports Xiong had worked for the Bloomington production operation for about 10 years and served as assistant comptroller, a position that gave her access to company accounts but not permission to write checks to herself.
An Audit Allegedly Exposed A 113-Check Trail
The alleged thefts came to light in June during an audit of the production facility's checking account. The criminal complaint says the review found numerous checks payable directly to Xiong, with the alleged check-writing scheme stretching from August 2024 through this month.
Investigators allege Xiong forged the company owner's signature and deposited the checks into her personal account. The total listed in the charges is $767,500, making the case one of the more substantial alleged employee theft cases to land in Hennepin County this year.
Investigators Say The Money Reached Casino ATMs
Once the money allegedly reached her account, Xiong made withdrawals at bank ATMs and at Treasure Island Resort and Casino near Red Wing, according to The Minnesota Star Tribune. After her arrest last week, police reportedly found three newly signed checks in her vehicle: one for $5,000 and two for $10,000.
Police also allegedly found tax forms documenting gambling winnings from various casinos, along with casino loyalty cards. The allegations do not establish how much of the company's money was ultimately lost at gambling venues, but they form the basis for prosecutors' claimed link between the check scheme and casino spending.
Charges Are Filed, But No Conviction Has Been Entered
Xiong was jailed Friday and released Monday, shortly before the charges were filed, and a warrant has since been issued for her arrest again. Her attorney declined a request for comment, and the criminal allegations remain unproven in court.
Minnesota's theft statute says theft by swindle involving more than $35,000 can carry a maximum sentence of 20 years in prison and a fine of up to $100,000. The Minnesota statute sets maximum penalties, not an automatic sentence, and any punishment would depend on the outcome of the case and later court proceedings.
The case follows another Minnesota embezzlement prosecution this spring in which a payroll manager was accused of diverting more than $1.2 million through excess payroll garnishments to fund a pull-tab addiction, CBS Minnesota reported. The cases are not connected, but both complaints describe alleged gambling spending tied to access to an employer's payment systems.
