News Summary
Zachary Rugen, a Tampa resident, has been sentenced to five years in federal prison for embezzling more than $500,000 from a St. Petersburg company. Rugen, who served as a personnel director, was found guilty of wire fraud and unlawfully possessing a firearm following a prior felony conviction. He diverted funds to personal accounts under false pretenses, causing significant harm to the company and its financial stability. In addition to prison time, Rugen must forfeit over $440,000 and will face three years of supervised release after serving his sentence.
Tampa – Zachary Rugen, a 34-year-old resident of Tampa, has been sentenced to five years in federal prison for embezzling over $500,000 from a small company based in St. Petersburg. Rugen’s sentencing underscores serious charges of wire fraud and unlawful possession of a firearm, a violation stemming from his prior felony conviction.
In addition to his prison sentence, Rugen must forfeit over $440,000. This financial penalty is part of the decision made by Senior District Judge Virginia Hernandez Covington, who presided over the case. Rugen’s illicit activities took place during his employment as a personnel director at the St. Petersburg company from 2020 to 2022, where he had access to financial operations.
Details of the Embezzlement
The St. Petersburg company, specializing in physical and cybersecurity services, was initially unaware of the financial misconduct occurring under Rugen’s watch. He was tasked with overseeing a contract for physical security services at a large facility located in France. However, instead of directing funds to legitimate vendors and contractors, Rugen engaged in deceitful practices to divert those funds into accounts that he personally controlled.
Rugen falsified invoices by inflating hours worked and payment rates to siphon additional money away from the company. A particularly egregious act occurred in 2022 when he submitted an invoice for over $98,000, misleadingly stating that the original charge was approximately $18,000. The substantial difference in amounts taken by Rugen was never paid to the intended security contractor.
Impact of the Fraud
The fraudulent activities had a significant effect on the financial stability of the victim company, leading to substantial hardship. Recovery from this embezzlement is expected to take at least five years, with one of the company’s vendors nearly going out of business as a direct result of the financial blow dealt by Rugen’s actions. In total, Rugen admitted to taking more than $400,000 during the interview with the FBI at his home in Tampa in 2023.
Criminal Background
Rugen’s earlier felony conviction involved impersonating a law enforcement officer, which prohibited him from legally possessing firearms. During the FBI’s investigation, agents found two handguns and multiple rounds of ammunition at his residence, leading to further complications in his legal circumstances. With the embezzlement scheme confirmed, the FBI, alongside the Tampa Police Department, conducted a thorough investigation into Rugen’s activities.
Legal Proceedings
Rugen was prosecuted by Assistant U.S. Attorneys Tiffany Fields and Jennifer L. Peresie, who presented the case in federal court. The legal proceedings have culminated in a significant sentence and a clear message regarding the consequences of white-collar crime.
Following the five-year prison term, Rugen will be subjected to three years of supervised release, which will monitor his reintegration into society post-incarceration. The case reflects the judiciary’s commitment to addressing financial crimes seriously, especially those that can jeopardize the livelihood of small businesses and their employees.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Business Observer: Embezzlement Case Sentencing
- Wikipedia: Embezzlement
- Fox 13 News: Video Report
- Google Search: Embezzlement Cases
- Pillar Catholic: Parish Finance Manager Faces Federal Charges
- Google Scholar: White Collar Crime
- Miami Herald: Florida News Article
- Encyclopedia Britannica: Fraud
- Hillsborough County Sheriff’s Office: Press Release
- Google News: Embezzlement
Author: STAFF HERE TAMPA WRITER
The TAMPA STAFF WRITER represents the experienced team at HERETampa.com, your go-to source for actionable local news and information in Tampa, Hillsborough County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Gasparilla Pirate Festival, Florida State Fair, and Tampa Riverfest. Our coverage extends to key organizations like the Tampa Bay Chamber of Commerce and United Way Suncoast, plus leading businesses in healthcare, finance, and technology that power the local economy such as BayCare Health System, Grow Financial Federal Credit Union, and KnowBe4. As part of the broader HERE network, including HEREJacksonville.com, HEREOrlando.com, HERESTPetersburg.com, and HERETallahassee.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
