Former Carson City office manager sentenced to prison after stealing company money

A 56-year-old Carson City woman was sentenced to prison Tuesday after embezzling at least $140,000 as office manager of a Carson City company formerly owned by actor Kevin Costner.

On Tuesday, District Court Judge James Wilson sentenced Barbara Jean Larson to 24 to 72 months in prison on a charge of embezzlement and 12 to 30 months on a charge related to defrauding the State of Nevada, Employment Security Division.

During the sentencing, Larson’s son, Corey Larson, shouted an expletive to the court in anger of the prison sentence handed down to his mother and slammed his way out of the courtroom. At the direction of Judge Wilson, Courthouse security apprehended Corey Larson, and the Judge sentenced him to 10 days jail for contempt of court.

Barbara Larson was arrested Oct. 9, 2012 and admitted to stealing an estimated $140,000 as office manager of CINC Industries, an environmental engineering company once owned by actor Kevin Costner. The amount embezzled reported in October was in a Carson City Sheriff's Office report. Those close to the case said the amount actually was much larger, $246,800.68 which is what Larson will be required to pay in restitution. The district attorney's office was unavailable for comment Tuesday night.

A September 28, 2012 complaint was filed with the Carson City Sheriff's Department by Bret and Gene Sheldon, owners of CINC Industries, a manufacturer of liquid centrifuges located on Arrowhead Drive. The company acronym stands for Costner Industries Nevada Corporation. Costner sold the company to the Sheldons in 2004.

The Sheldons informed authorities Larson had worked 11 years for CINC Industries as office manager and was responsible for accounts payable and receivable and also managed the finances of the business. The Sheldons told authorities they fired Larson on Sept. 24 after discovering that she issued company checks made payable to herself, according to the arrest report. The woman later admitted to Carson City investigators that she stole the money, where she cashed company checks at a local casino, because she had a gambling problem.

As office manager Larson was responsible for accounts payable and receivable of CINC Industries. She admitted to using this position to issue checks to herself which were drawn upon the accounts of the business. Larson continued her clandestine behavior unabated for over a year until its eventual discovery.

“The Office of the District Attorney believes the sentence sends the right message that especially in these tough economic times, or any time, those who take advantage of their position of trust to embezzle from local businesses deserve to go to prison,” stated District Attorney Neil A. Rombardo in a released news statement.

Rombardo also pointed out that this type of case proves the need for a business protection program, which the District Attorney’s Office is developing with the Carson City Chamber of Commerce and accountants from the firm of Freeman and Williams.

Larson also admitted to defrauding the State of Nevada, Employment Security Division, between January 1, 2011 and September 30, 2012, by failing to report earnings made during that time while she received unemployment benefits.

The Court was not persuaded by Larson’s statements regarding her motivations for the crimes. In handing down the prison sentence, Judge Wilson cited to the amount of funds embezzled as well as the numerous instances of criminal conduct. As to the Embezzlement charge, the Judge handed down a prison sentence of 24 to 72 months and, for the fraud perpetrated against the State, the Judge sentenced Larson to 12 to 30 months.

Both sentences are to run concurrent. Finally, the Court ordered Larson to pay restitution to the victims of her embezzlement in the amount of $246,800.68 and to the State of Nevada in the amount of $3,738.00.