Former Twin Cities executive pleads guilty to embezzling $3M to fund lavish lifestyle

A former Twin Cities property management executive has admitted to embezzling more than $3 million from his employer to fund a lavish lifestyle.

David E. Katz pleaded guilty in U.S. District Court in St. Paul to wire fraud in connection with the embezzlement while he was the chief financial officer for Durand and Associates (D&A) in South St. Paul from 2012 to until his firing in 2017.

D&A specialized providing homeowner association services that included lawn care, snow removal and building services in exchange for a monthly fee.

The plea agreement says that federal guidelines call for him to receive a sentence ranging from 2 ³⁄₄ to nearly 3 ¹⁄₂ years. However, federal judges have discretion when sentencing defendants and are not bound by the guidelines.

The plea deal also calls for Katz to pay back the $3 million he stole.

Sentencing for Katz, who now lives in Arizona, has yet to be scheduled.

According to prosecutors:

Between 2011 and 2017, Katz paid himself $6,500 every two weeks as a salary despite his agreed upon annual salary never being more than $47,500.

He also reimbursed himself for personal expenses and for business expenses he never actually incurred. Those reimbursements ranged between $6,000 and $10,000 every two weeks. He labeled these payments as miscellaneous earnings and reimbursements, "recovery loans," bonuses and commissions.