Personal Assistant Pleads Guilty to Stealing $10 Million from Elderly Couple
A woman from New York, who worked as a personal assistant, has admitted to stealing nearly $10 million from her elderly employer, a former Salomon Brothers banker, and his wife to support a lavish lifestyle that saw her indulge in items from high-end brands like Louis Vuitton and Gucci.
Starting around 2017 and continuing until 2024, Catalina Corona, 62, reportedly wrote numerous checks in cash from the accounts of the late Richard Schmelk and his widow, Priscilla, making them payable to herself. This money was funneled into covering credit card bills and purchasing luxury goods from brands including Cartier and Gucci, according to court documents.
At a federal court appearance last year, Corona, who is from Queens, was spotted wearing a black cardigan paired with a $1,500 Louis Vuitton clutch. She pleaded guilty to wire fraud in Brooklyn federal court on Wednesday.
Aside from a potential restitution and fine, she could face up to 30 years behind bars, as stated by the U.S. Attorney for the Eastern District of New York.
FBI Assistant Director James Barnacle remarked, “Catalina Corona stole nearly $10 million from an elderly couple who trusted her with their care to fund lavish purchases.” He emphasized the FBI’s dedication to holding accountable those who betray trust for personal gain.
Richard Schmelk, who had a long career with Salomon Brothers, passed away in May 2022 at the age of 97—just two years before authorities uncovered the scheme. However, Corona continued to exploit the widow’s accounts until 2024, when a bank employee alerted Priscilla Schmelk about a dubious $1,500 check, leading to her arrest.
After leaving Salomon Brothers, Richard Schmelk co-founded CAI Managers. A decorated World War II veteran, he was honored by Pope Benedict XVI and was linked with President Trump’s club at Mar-a-Lago in Florida, according to his obituary.
Interestingly, Mr. Schmelk was previously defrauded decades ago by his former executive secretary, Bebe Fazia Larjie, who diverted checks he had signed for personal use. She was later convicted of mail fraud and bank fraud in 1998.
Federal prosecutors noted that Corona began her employment with the elderly couple in January 2017, quickly turning to theft by forging checks. Additionally, she allegedly made numerous phone calls to banks, impersonating one of the victims to retrieve sensitive account information.
Over the course of her fraudulent actions, it’s reported that she spent over $1 million on Louis Vuitton alone, alongside significant amounts at Cartier and Gucci. She also used the stolen money for credit card payments and booking flights, as detailed in court filings.
