County gets $208K back from alleged theft

Bedford County says it has recovered a majority of the money from a recent fraud scheme involving its finance department.

In an emailed statement signed by Commissioner Chairman Mike Stiles, the county wrote that it has successfully recovered $208,544.69 of the $247,230 total.

"Upon discovering the incident, the county immediately worked with its banking partners, law enforcement, and internal staff to recover the funds," the statement said.

Additionally, the statement said the remaining $38,685.31 was reimbursed through the county's social engineering fraud liability insurance coverage, and results in no financial loss to Bedford County taxpayers.

A criminal complaint filed last week and reported in the Gazette's edition on September 11 attributed the alleged theft to Wayne Michael Radosky of Arlington Heights, Illinois, who is facing five second-degree felony counts of theft, theft by deception, receiving stolen property, and two counts of forgery, as well as a third-degree felony count of access device fraud, stemming from an alleged redirected payment into his bank account.

State police were notified by the Bedford County District Attorney's Office on August 12 of a theft investigation started by the Bedford Borough Police Department in relation to a suspected theft from the Bedford County Finance Department.

According to the criminal complaint, an employee in the finance department received an emailed invoice allegedly issued by Cottle's Asphalt Maintenance for $247,230.

The office was expecting an invoice for that amount.

However, after paying the invoice and contacting Cottle's Asphalt Maintenance for confirmation, it was determined that the invoice was a scam.

According to police, the email used a signature block belonging to a former employee on company letterhead.

During the investigation, police said they found within the email chain information leading them to a Citibank account.

A search warrant was issued to Citibank pertaining to the account number, which police said led them to Radosky.

State police reviewed the transaction history, according to the affidavit of probable cause, and saw wire transfers to an individual named "Charles Mitchell" on July 17.

Another search warrant was received to determine where that money went, and police concluded it was sent to Ameris Bank in Moultrie, Ga.

Video surveillance from that bank reportedly showed Radosky enter the bank around 3:20 p.m. July 14.

He allegedly exchanged paperwork with the teller, but police could not determine what transaction was made.

Bank statements allegedly show a cash withdrawal for $15,000 on that day, which was after the funds were supposedly redirected.

"The county would like to recognize the swift and diligent efforts of the Bedford County Finance Department, District Attorney Ashlan Clark, and the Pennsylvania State Police Criminal Investigation Unit, whose coordinated response played a critical role in recovering the funds and investigating the incident," the county's statement wrote.

"While this event highlights the increasingly sophisticated nature of cybercrime and social engineering scams, Bedford County has taken steps to strengthen its safeguards. The county has implemented enhanced financial controls, and expanded cybersecurity awareness and training programs across all departments to help prevent similar incidents in the future. Bedford County remains committed to protecting public resources, maintaining transparency, and continuously improving its security measures to safeguard taxpayer funds."

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