Manhattan District Attorney Robert M. Morgenthau announced today that a public relations finance manager for Saks Fifth Avenue has been charged with stealing at least $680,000.00 from the company in a phony invoicing scheme.

The defendant, AVA JOHN, 51, was charged with Grand Larceny in the Second Degree, Money Laundering in the Second Degree, Forgery in the Second Degree, Criminal Possession of a Forged Instrument in the Second Degree, and Falsifying Business Records in the First Degree. JAVONCA WELLINGTON-WATSON, 32, JOHN’S niece and an accomplice in the scheme, was also charged.   

As finance manager at the main Saks headquarters in Manhattan, JOHN was responsible for coordinating the work and payment of outside vendors hired by Saks for special events at the store, such as trunk shows and cosmetic and fashion line debuts. The complaint charges that beginning in April 2003, JOHN began creating and submitting fraudulent invoices requesting payment for freelance, modeling, housekeeping, and consulting services supposedly provided to Saks by various vendors and individuals at special events. The fraudulent invoices contained forged approval stamps of JOHN’S supervisors and directed that the payment checks be returned directly to JOHN for distribution. In fact, no legitimate services had been provided and the individuals to whom the checks were issued were relatives and associates of JOHN who would kick a portion of the money back to JOHN after cashing or depositing their checks. JOHN submitted over 300 fraudulent invoices to Saks for payment between 2003 and August 2008, totaling $680,000.00.

WELLINGTON-WATSON incorporated Sterling Silver Bridal Consultants in January 2003.  JOHN began submitting fraudulent invoices to Saks in 2005 for services supposedly rendered by the bogus company and directed that the payment checks be issued to WELLINGTON-WATSON. The defendants stole $407,145.00 from Saks through this scheme between 2005 and the present date.   
             
JOHN worked for Saks for 19 years. Her current annual salary is $54,365.04.  The investigation, which is continuing, began after Saks conducted an internal audit and review and referred the matter to the Manhattan District Attorney’s Office.

Grand Larceny in the Second Degree and Money Laundering in the Second Degree are class C felonies punishable by up to 5 to 15 years in prison. The forgery-related offenses are class D felonies punishable by 2 1/3 to 7 years in prison, and Falsifying Business Records is a class E felony with a potential sentence of 1 1/3 to 4 years in prison.

JOHN and WELLINGTON-WATSON were arrested today and are scheduled to be arraigned later in Manhattan Criminal Court.
           
Mr. Morgenthau thanked Saks Fifth Avenue for its assistance and cooperation in this investigation. Mr. Morgenthau also thanked the New York City Police Department, specifically the District Attorney’s Office Squad Detective Anthony Pasquariello and Lieutenant Patrick Johnston.

Assistant District Attorney Amy Miller, who is assigned to the District Attorney’s Special Prosecutions Bureau, is handling this investigation, under the supervision Bureau Chief Thomas Wornom and Deputy Bureau Chief Joan Delaney.

Defendant Information

AVA JOHN, 11/24/1956  
259-42 Craft Avenue
Rosedale, New York

JAVONCA WELLINGTON-WATSON, 02/01/1976
259-42 Craft Avenue
Rosedale, New York

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