Risk Management

Tea Party over as Accountant Admits Theft

He bilked his employer, the maker of Arizona Iced Tea, for $1.16 million to buy drugs and to gamble.
Stephen TaubJuly 25, 2008

An accountant has pleaded guilty to stealing $1.16 million from the Long Island company that employed him.

Steven Rubenoff, who worked for Lake Success, New York–based DV Capital LP, maker of Arizona Iced Tea, admitted to funneling the money through his daughter’s college fund to finance drug usage and gambling. He pleaded guilty in Nassau County Court to first-degree grand larceny, and faces up to nine years in prison when sentenced on August 27.

According to Nassau County District Attorney Kathleen Rice, between January 23, 2007, and February 7, 2008, Rubenoff made numerous unauthorized transfers, ranging from $50,000 to $90,000, from DV Capital into his daughter’s college fund. He then moved the money into an account controlled by Rubenoff and Associates LLC, a tax and consulting service he owns.

Rice adds that Rubenoff also made false entries to the business ledger to show withdrawals for personal expenses by those that actually controlled the account.

Rubenoff worked for DV’s Hornell Brewing Co. division, according to Newsday.