A former Orem rehabilitation center administrator pleaded guilty this week to embezzling nearly $170,000 to pay for family vacations, home remodeling ventures and other personal expenses.
Investigators arrested Timothy Claybaugh, 36, almost seven months ago. He was charged in 4th District Court with two counts of money laundering and three counts of theft, all second-degree felonies.
Charges state he stole $169,876 from Stonehenge of Orem, a short-term rehabilitation and skilled nursing center that specializes in post-hospitalization care.
On Monday, Claybaugh accepted a plea agreement and pleaded guilty to a class A misdemeanor of theft and money laundering. All other charges were dismissed.
Instead of facing a possible prison sentence, he will face a maximum sentence of two years in jail, according to court documents.
Beginning November 2016, Claybaugh worked as an administrator at Stonehenge of Orem and voluntarily resigned to work for a competing company in May 2019.
As an administrator, Claybaugh was in charge of all facility operations and departments, including company finances and any money spent on facility operations.
Soon after his resignation, the company owner found bank statements that showed Claybaugh used the company credit card to purchase more than 400 gift cards for Visa, Delta, Hotels.com, Airbnb, Home Depot, Nordstrom, Fandango, Amazon, Target, Cold Stone, Verizon and Walmart.
“It was found that Timothy purchased vast amounts of unauthorized personal items including gift cards, groceries, appliances, flowers for his wife, construction tools and materials to finish his basement, toys, a bike, diapers, furniture, electronics, landscape materials, a barn door, fast food, candy and energy drinks,” police reported. “The amount Timothy has spent on his company card in a two-year time period is a staggering $148,794.”
Claybaugh also reportedly wrote company checks to himself totaling $62,708 and stole petty cash totaling $18,768 since he started working in 2016, the report stated.
He also reportedly used his personal credit card at local hospitals for $11,550 and reimbursed himself three times the amount using statements and invoices.
“It is suspected Timothy used gift cards to fund recent trips to Costa Rica, New York, and Disneyland,” police reported. “He has also funded his new home remodel using gift cards.”
Detectives discovered Claybaugh hid his purchases by laundering the money through gift cards instead of blatantly using the company credit card. He also reportedly recorded multiple reimbursements to employees at the time they left the company and then pocketed the money himself.
Sentencing is scheduled for March 16.