A Middletown, Del.-based accountant has been accused of embezzling almost $3 million from a trust. An indictment this month accused The indictment alleges that between 2013 and 2015, Rice, then a CPA, was a trustee for a trust created to pay tax obligations of a dissolving company. It is claimed he took funds from the trust account to finance his own business investments, including purchase of multiple tax preparation franchises.
He is also accused of misappropriating $100,000 from another client in 2011. The client had given Rice the money to invest on her behalf but it is alleged that he instead used the funds for his own business ventures and personal expenses.
After that client died in 2012, Rice, who was executor of her estate, continued to collect pension payments from a public employee retirement system, keeping those funds for his own use.
The indictment also alleges his 2013 federal tax return did not include his illegal income from the fraud scheme. Reporting that income is required by law.
Rice faces up to 30 years in prison on the bank fraud charges, 20 years for the alleged wire fraud, up to 10 years for money laundering, three years for allegedly filing a false tax return and up to one year for failing to file a tax return.