Suburban man admits millions in fraud to buy cars, tip strippers

By PAUL WALSH, Star Tribune

Last update: August 18, 2008 - 7:44 PM

A 34-year-old Eden Prairie man pleaded guilty in U.S. District Court to mail fraud as part of a scheme to steal about $8.5 million from his employer that he spent on cars, gambling, gifts for girlfriends and tips at a strip club.

As part of his plea agreement Friday in St. Paul, Nathan J. Mueller embezzled about $8.5 million from his employer, ING Reinsurance, from June 2003 through September 2007 by prompting his employer to issue 99 checks payable to entities whose names were similar to the names of entities with whom ING Reinsurance did business.

In one of the biggest local employee-embezzlement cases in years, Mueller obtained and deposited these checks into bank accounts that he controlled. To conceal the embezzlement, Mueller made numerous false and misleading entries in ING Reinsurance's books and records.

As part of his plea agreement, Mueller has agreed to forfeit his interest in significant assets obtained using the proceeds of the fraud scheme, including homes in Eden Prairie and Brooklyn Park, and a 2007 Audi.

According to the indictment, the money also went toward real estate, Las Vegas junkets, cars, loans to friends, gifts to girlfriends and tens of thousands of dollars in tips at a downtown Minneapolis strip club.

Mueller faces a potential maximum penalty of 20 years in prison. Sentencing has yet to be scheduled.

Paul Walsh • 612-673-4482

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