Norfolk woman confesses to payroll fraud that diverted more than $419,000 into personal account
Norfolk, Virginia – A former payroll manager in Norfolk has admitted to carrying out an elaborate embezzlement scheme, stealing more than $419,000 from her employer over a yearlong period. Courtney Johnson-Gregory, 47, pled guilty to wire fraud after investigators uncovered hundreds of unauthorized payments made from company accounts into her personal bank account.
Payroll Fraud Uncovered Through Financial Review
According to court documents, Johnson-Gregory worked for a security services company in Norfolk between 2022 and 2023, where she was entrusted with managing payroll and had direct access to company bank accounts. Her role allowed her to adjust payment information for employees, a privilege she abused to reroute company funds for personal gain.
The fraud came to light in February 2023 when a routine payroll review revealed missing check sequences. The company launched an internal investigation and discovered that hundreds of additional checks had been issued to former employees whose names had been reactivated in the system. However, none of these payments were properly recorded in the company’s payroll system.
A deeper dive into the system logs confirmed that the routing and account numbers linked to these transactions had been altered. Investigators found that Johnson-Gregory had used her own login credentials to access the payroll system, reactivate former employee profiles, and initiate payments. Once the funds had been deposited into those accounts, she deleted any record of the transactions to cover her tracks.
Unauthorized Transfers Totaling Over $419,000
Between February 2022 and February 2023, Johnson-Gregory executed over one hundred unauthorized transfers from the company’s accounts into her own personal account. The fraudulent transactions included both physical checks and electronic transfers through the Automated Clearing House (ACH) system.
Records show that she stole $136,145.68 through fraudulent checks and an additional $283,064.62 via unauthorized electronic transactions. In total, Johnson-Gregory embezzled $419,210 before her scheme was exposed.
Johnson-Gregory is scheduled to be sentenced on September 5, 2025. She faces a maximum sentence of 20 years in federal prison. However, sentences for federal crimes often fall below the maximum allowable penalty, depending on various factors, including prior criminal history, cooperation with authorities, and sentencing guidelines.
