Former Illinois Mutual manager pleads guilty to embezzlement

Sept. 09--PEORIA -- The former information technology director at Illinois Mutual pleaded guilty Tuesday to creating false invoices that led to the insurance company spending more than $1 million over a 10-year period.

Robert Zimmerman, 51, of 11807 W. Kevin Court, Brimfield, admitted in federal court records that he steered business to a vendor owned by a former colleague and in which he had a business interest. He admitted that many of the bills he submitted were for products or services that often weren't needed or purchased.

He waived indictment by a federal grand jury and pleaded guilty to "crimes affecting people engaged in the business of insurance," a felony that could net him up to 10 years in prison when sentenced Jan. 12 by Senior U.S. District Judge Michael M. Mihm.

The case, which was filed last month but unsealed Wednesday, states Zimmerman was Illinois Mutual's IT manager from 2004 until April 2014. During that time, he had access to the company's computers and had the authority to acquire both hardware and software to accommodate the company's needs.

The scheme worked like this: Zimmerman created bogus invoices which he then provided to the unnamed vendor. The vendor would then copy the information down onto its own company stationary, mark up the price of the product and then submit to Zimmerman who then approved the purchase. Illinois Mutual then paid the vendor who split the profits with Zimmerman, according to federal court records.

In his plea agreement, Zimmerman admitted he knew he was violating the company's conflict of interest policy but chose not to tell the company about his involvement with the vendor because he knew Illinois Mutual wouldn't approve and he needed the extra money. Illinois Mutual learned of the scheme in April 2014, when they did an audit and found some suspicious activity regarding the vendor and Zimmerman, his plea agreement states.

Some of the items, Zimmerman said, were legitimate but he admitted in his plea agreement that "the majority of the items referenced in the invoices were never purchased."

Zimmerman remains free on bond pending his sentencing.

This story will be updated.

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