Executive Diverted Company Funds ThroughCU

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STURGIS, Mich. - (01/20/06) -- The chief financial officer of ParmaTube Corp. pleaded guilty Thursday to embezzling as much as$938,000 from the company, much of it laundered through his creditunion account. Craig Balzer, 42, pleaded guilty to one count ofembezzlement of more than $20,000, but insisted he did not know howmuch money he stole from his employer. But authorities said Balzerdiverted $938,000 from company accounts to his own use, about$238,000 of which he deposited in his accounts at Kastco CU, inKalamazoo. Authorities said Balzer began making weekly deposits ofParma funds into his credit union account in June 2003, beginningwith $60 and eventually reaching $4,000 a week. Credit unionofficials contacted the owner of the company when they were unableto verify authorizations for fund transfers from a company accountat a bank to the credit union account in Balzer's name.

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