A 69-year-old woman who once controlled the books at a Monroe County construction company is accused of siphoning more than $233,000 from its accounts over nearly six years, spending some of it on concert tickets and travel before the business shut down this spring. Kathleen Merriam was arrested on charges of grand larceny, identity theft and falsifying business records, according to the Monroe County Sheriff's Office.
Merriam had worked as Redman Construction's controller since September 2018, giving her access to the company's financial accounts, as reported by 13WHAM-TV. The company operated in the Town of Sweden.
According to court paperwork, Merriam allegedly stole $233,350.34 between June 2020 and February 2026. Patricia Murphy, the fiancée of company owner Scott Arend, began examining Redman Construction's finances in February and found credit card statements and payroll records showing Merriam had overpaid herself for years, the station's report states.
Unauthorized Raises, Credit Cards and Concert Tickets
Court paperwork alleges Merriam began giving herself unauthorized raises in 2020, ultimately taking more than $105,000 through those pay bumps. She is also accused of spending about $60,000 on company credit cards for personal purchases, including airline tickets, hotels and rental cars, per the same account.
Murphy reported that the purchases included concert tickets for Carrie Underwood, Metallica and Journey. The complaint further alleges Merriam gave herself additional vacation, holiday and paid time-off hours, amounting to nearly $52,000 in unauthorized paid time off. Separately, court paperwork alleges she charged more than $16,000 to a credit card opened in the owner's name.
A Small Workforce Left Without a Job
Redman Construction employed about 13 people last year before closing by the end of March. The company sold its construction vehicles, trailers and other equipment at auction in June, and it is now seeking full reimbursement and restitution for the alleged losses.
Research cited by Bennett Thrasher shows the median occupational fraud scheme continues undetected for about 12 months. The nearly six-year window alleged in the Redman Construction case is much longer.
What Comes Next in Monroe County Court
Merriam is due back in court later in October.
Under New York Penal Law, stealing property valued at more than $50,000 constitutes Grand Larceny in the Second Degree, a Class C felony punishable by up to 15 years in state prison, according to the Law Office of Michael H. Joseph, PLLC. Falsifying Business Records in the First Degree, meanwhile, is a Class E felony when false entries are made to conceal another crime, carrying a penalty of up to four years in prison, per Saland Law.
Full recovery after embezzlement is rare — commercial fraud research from Regions Bank found only about 11% of victimized businesses recover 75% or more of stolen funds, since stolen funds are often spent rather than kept in recoverable accounts.
A Familiar Pattern for Small Businesses
The alleged scheme at Redman Construction echoes a broader pattern tracked nationally. Small businesses with fewer than 100 employees suffer a median loss of $141,000 per occupational fraud scheme, the second-highest median loss band of any business size, according to the Association of Certified Fraud Examiners data cited by WhippleWood CPAs. Asset misappropriation is the most common form of workplace fraud.
