COLUMBIA, SC (WIS) - The former accounting director for the South Carolina Hospitality Association pleaded guilty Wednesday to embezzling nearly $500,000.
Rachel Duncan pleaded guilty to wire fraud and tax evasion charges under an agreement with federal prosecutors. Both are felonies. Duncan is accused of taking more than $480,000 from the association and using the money for online gambling.
Duncan worked closely with association director Tom Sponseller, who committed suicide in February. Duncan was mentioned in Sponseller's suicide note that said he was despondent over Duncan's financial crime because it happened on his watch.
US Assistant Attorney Winston Holliday says agents started looking at Duncan several months ago.
"They're continuing to talk to her and she's indicated a willingness to provide additional information regarding that investigation," Holliday said. "But basically anything that we've needed to ask her she's been made available."
Prosecutors say they found photos on Sponseller's computer that portrayed Duncan in a "sexual nature." The photos led them to believe that there was more to their relationship than suggested in Sponseller's suicide note.
"One group of photos was the ones I alluded to of a sexual nature, they are just of her and I want to clarify that. I think some people had some questions as to that," Holliday said.
Agents found two different groups of pictures of Duncan. "Showed bruises to her face, which are, I think, consistent of domestic abuse," Holliday said.
But prosecutors say there is no evidence that Sponseller received any of the money that was missing from association accounts.
"We've analyzed his bank records, analyzed her bank records, we've traced the money. The Hospitality Association had done their analysis of their bank records and it is already concluded that he did not receive any of the money," Holliday said.
When she is sentenced in June, Duncan faces up to 23 years in prison and $350,000 in fines.
Duncan is out on $25,000 bond.
Copyright 2012 WIS. All rights reserved.
Rachel Duncan
