Tampa, Florida — A Tampa man has been sentenced to five years in federal prison for wire fraud and illegal firearm possession, according to an announcement from the U.S. Department of Justice (DOJ).
Zachary Rugen, 34, also faces a forfeiture order of $440,755.18 following his conviction for embezzling over $500,000 from his employer and illegally owning firearms as a previously convicted felon.
Embezzlement Scheme Spanned Over a Year
Court records show that between October 2020 and March 2022, Rugen was employed as the personnel director at a St. Petersburg-based company.
During his time there, he embezzled at least $503,372.01 by diverting funds meant for legitimate vendors and contractors into personal accounts he controlled.
He accomplished this by submitting falsified invoices using the company’s internal payment system.
The stolen money was then used for vacations, gambling, debt repayment, and various personal expenses, prosecutors said.
Business Nearly Collapsed Due to Theft
The victim company’s Chief Operating Officer testified that Rugen’s actions caused significant financial damage. The company expects it will take at least five years to recover from the losses.
One vendor impacted by the fraud nearly went out of business, the DOJ added, underscoring the widespread fallout from the scheme.
Firearms Found During Investigation
While investigating the embezzlement, authorities discovered that Rugen illegally possessed two firearms. Due to a prior felony conviction for impersonating a law enforcement officer, Rugen was legally prohibited from owning any weapons.
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Guilty Plea and Sentencing
Rugen pleaded guilty on April 8, 2025, to both wire fraud and possession of firearms by a convicted felon. He was sentenced to five years in prison and ordered to forfeit nearly $441,000.
Community Reactions
This case highlights the ongoing concern around internal fraud and the importance of rigorous financial oversight within businesses. It also reflects the DOJ’s firm stance on enforcing federal gun laws, especially concerning repeat offenders.
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