WORCESTER, Mass. (AP and ACNI) - A Hudson woman has pleaded guilty to stealing about $724,000 in cash and goods from the auction house where she once worked.

The Massachusetts Attorney General's office says 72-year-old Joanne Shea pleaded guilty in Worcester Superior Court on June 2, 2009 to larceny and making false entries in corporate books during the period of 1993 through 2006 while an employee of Skinner Inc. She was sentenced to 10 years of probation, including two years in home confinement, and ordered to pay restitution.

A well-respected company whose blue-chip sales have achieved several world auction records, Skinner Inc. first contacted Massachusetts State Attorney General Martha Coakley's office in October 2006, telling them they suspected Shea had been stealing money and merchandise from them over a 13-year period. A Skinner representative told the State Attorney General's office that they believed Shea had used a "lapping" scheme that utilized incoming cash payments to cover funds she had previously taken out. An investigation was launched, and details soon began to surface regarding how Shea had engineered the alleged crimes.

Shea would then use subsequent check payments to cover the previously deposited but "open" check payments, creating an ongoing, perpetual cycle. Even when misallocating payments, Shea would provide accurate information to the company's inventory system to ensure that paid customers received their items upon payment even when Shea left their invoices in an "open" status.

In addition to theft of cash payments, authorities allege that Shea acquired items from Skinner sales without paying for them. Investigators say that Shea had her own employee account with the company and could use this account to bid on, and purchase, auction items. Shea allegedly did not pay for many of these items, but rather used the money from legitimate payments made by customers to cover the outstanding, unpaid balances on her personal client account. Shea then "lapped" subsequent incoming checks to cover these misapplied payments.

Investigators learned that, in addition to misusing her own account, Shea controlled multiple accounts in the names of relatives, which she used to acquire auction goods without payment. Among the items Shea acquired through her scheme were paintings, antique vases and Art Deco jewelry. Authorities believe Shea used the cash funds she stole for her own personal use.

See previous coverage on Auction Central News at these links:

Mass. woman charged with defrauding auctioneer pleads not guilty.

Catherine Saunders-Watson (ACNI) contributed to this report.

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