Rosemount man sentenced for misuse of clients’ $72,000

A 50-year-old Rosemount man was sentenced on March 3 to community service, 20 years of probation and pay a restitution amount that has yet to be set after he pleaded guilty to charges connected to the theft of $72,000 paid by clients to the collection agency he owned.

Scott Alan Schoaf pleaded guilty to felony theft and theft by swindle after a random audit discovered his misuse of funds through his company, Alternative Receivables Solutions Inc., for the period of June 2009 to March 2010.

The Minnesota Department of Commerce’s October 2009 audit found that ARS was “out of trust” on trust accounts maintained by the business, had commingled client funds with operating funds and failed to remit to clients (creditors) some client funds that ARS had collected from debtors on the client creditors’ behalf, according to the criminal complaint.

It also was discovered that ARS had transferred trust accounts funds into operation accounts, which were separate from each other.

It was reported that the trust account had a negative balance 44 times in 2009.

Schoaf will work for 30 days in the Sentence-to-Serve program and will serve an additional 25 days each year in the program until the restitution is paid in full.

As part of the sentencing, Schoaf cannot volunteer or be employed in a position that requires handling of funds.

An additional count each of felony theft and theft by swindle were dismissed at sentencing. He was charged in April 2012 with four felony counts.

Dakota County James Backstrom praised Assistant County Attorney Elizabeth Swank, who prosecuted the case, and he thanked the Rosemount Police Department and the Minnesota Department of Commerce for their thorough investigation.
– Tad Johnson

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