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Cranberry Township company claims former controller embezzled over $100,000

A Cranberry Township sewer line installation and repair business is suing a former employee, claiming she embezzled more than $100,000 from the company when it was in the midst of a leadership change in 2021.

State Pipe Services Inc. filed the suit last week against former controller Kristin Jakub of Export, Westmoreland County, in Butler County Common Pleas Court seeking damages in excess of $35,000.

The suit claims that Jakub, who had oversight of the company's daily accounting operations, payroll, accounts receivable and financial health, used the company's credit card to make more than $80,000 in purchases at restaurants, stores, amusement parks and scenic railroads, and to pay utility bills and college SAT test fees.

In addition, the suit alleges Jakub used the credit card to obtain cash advances that she wired to relatives and associates, including people believed to her daughter and boyfriend.

She also made about $25,000 in unauthorized payments to herself through the company's payroll system, according to the suit.

The alleged credit card purchases and cash advances were made from August through December 2021 while the company was in a leadership transition following the March 2021 death of president and primary owner Scott Burns, according to the suit. His wife, Valerie Burns, assumed owner and president responsibilities.

During the transition, Valerie Burns had difficulty accessing the company's computer system. In October 2021, she learned from an information technology professional that Jakub had been actively seeking to limit her access to the computer system that had information about the company's financial transactions, according to the suit.

Jakub resigned in January 2022.

The suit accuses Jakub of embezzlement and misappropriated funds, fraud, breach of fiduciary duty and unjust enrichment.

Jakub could not be reached for comment. Court records show she has not responded to the suit or hired an attorney.

Robert Galbraith, the attorney representing State Pipe Services, declined to comment.

The district attorney’s office and Cranberry Township police said they are not conducting criminal investigations into the matter. A spokesman for the state Attorney General’s Office declined to comment except to say the office does not discuss active investigations or confirm their existence.

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