Point Reyes Light - October 31, 2002
Nicasio resident faces embezzlement charges
By Ivan Gale
A Nicasio man Robert Lawrence Dry, 39, pled not guilty last week to charges that he embezzled tens of thousands of dollars from his employer, an independent Corte Madera bookstore.
Dry worked as director of operations at Book Passage in Corte Madera from March 1999 to March 2002. He was an employee of the book seller for a total of 11 years.
Owner Elaine Petrocelli started noticing unauthorized expenses and wage discrepancies in Dry’s accounting after her return to work from sick leave in fall of 2000.
Under investigation
Dry, who hired his domestic partner, William "Michael" Carlson, 47, as a part-time Book Passage employee in mid- to late-2000, was later placed under investigation.
After a three month inquiry by Twin Cities detectives, the two were arrested in June. The pair was released after posting bail amounts of $61,000 for Dry, and $31,000 for Carlson.
The District Attorney’s office formally arraigned Dry this month. Despite evidence from police reports that Carlson, a broker/owner for Prudential California Real Estate in Kentfield, had been grossly overpaid for his part-time work, no formal charges were filed.
According to the District Attorney’s affidavit, Petrocelli first confronted Dry about questionable accounting practices when she returned from her sick leave in late 2000. She and was told by Dry that he would "look into it." Despite Petrocelli’s mounting suspicions, Dry continued his alleged embezzlement through the following year.
Dry is accused of overpaying himself and his domestic partner, running up unauthorized personal credit card charges, and using his benefits package to pay medical insurance for Carlson and their adopted daughter, which cost an estimated $11,000.
Fraud devastating
Book Passage co-owner and husband of Elaine, Bill Petrocelli said the impact of Dry’s alleged fraud has been devastating.
"It’s been difficult. [It’s difficult to overcome] when you trust someone to that extent and they’ve breached that trust," Petrocelli said.
Petrocelli noted he fears some of Dry’s embezzlement may still be undetected.
According to court documents, Robert Dry was earning $55,000 annually, but he paid himself $60,000. Including an additional bonus, Dry embezzled a total of $8,058 in wages alone.
Though the Petrocellis were under the impression Carlson volunteered at author events, Dry also paid Carlson in a bank account they shared for 1461 hours of work from for the amount of $20,547. Store records could only account for 128 hours Carlson could have worked during that time.
Credit card use
Dry also is accused of using two company credit cards for personal gain. One card was completely unknown to the Petrocelli’s. The card allegedly was used to run up thousands of dollars in personal expense charges to Rancho Nicasio and Macy’s. Other charges paid for personal phone bills, garbage service to the couple’s Lucas Valley Road home, gas, dry cleaning, baby clothes, toys, and portraits of their adopted daughter.
Additionally, Dry allegedly misused company funds to pay for a company sales incentives program. In 2001, Dry awarded Book Passage sales winners with a stay in a Bodega Bay home owned by Carlson. Although the employees thought Dry was letting them stay at the couple’s home out of gratitude, the property management company in charge of the home billed Book Passage $1,800 for the rentals, with Carlson receiving 70 percent of the proceeds. Dry then purchased flowers for the winners with a personal note from himself, and again charged Book Passage.
Dry will return to court Thursday, Nov. 7, at which time a date will be set for a preliminary hearing.