Councilman's Lawsuit Alleges $1.9M Dollar Theft

Update 12/17/10: LIVE COVERAGE OF THE PLEA HERE


Last February, on the dawn of his re-election campaign, Dallas City Councilman Dave Neumann filed a lawsuit against a former employee, two banks and an accounting firm over a massive alleged theft from the business owned by Neumann and his wife.

The lawsuit, quietly filed in Ellis County, accuses an 18-year employee, Shannon DeMerse, of pilfering $1.9 million dollars from his apparel boutique, Ivy Jane, over a 1 1/2 year period.

"As of the filing of this Petition, it appears that [DeMerse] has stolen $1.9M from Ivy Jane," says an amendment to the original Ellis County lawsuit.

Neumann's business, F L Malik, Inc. (dba Ivy Jane) grosses $2.6 million dollars annually according to Hoovers.  If correct, the alleged theft would represent approximately 73% of the annual income to the business.

According to a confession made by DeMerse, filed as an exhibit with the lawsuit, she started taking the money around "mid 2007."  "My family has been in financial trouble since Stuart has been out of work," says the handwritten document in part.

In excerpts from a deposition taken on February 10, 2009, DeMerse details how she opened bank accounts using the name "Ivey Jane, Inc" and funneled money from Neumann's business to a variety of destinations.

According to DeMerse, some of the money went to finance Darling Dolls of America and Diamonds and Pearls--beauty pageant businesses focusing on kids.

DeMerse also admitted to stealing Ivy Jane customers' credit card numbers.

Demerse was asked if she used "any credit card numbers belonging to actual customers of F.L. Malik without authority to pay some of these accounts?"

"Yes," DeMerse replied.  According to DeMerse, she used "three or four" in January of 2009.

Records also show that DeMerse has contributed to Neumann's city council campaign in the past.

Many questions about the lawsuit remain unanswered and, according to a protective order filed in the case, Neumann may be trying to keep as many of the details as secret as possible.

One big question: how did Neumann and his wife, listed as officers of F L Malik (Ivy Jane), fail to notice something as significant as a $1.9 million dollar theft from a $2.6 million dollar business?

Neumann has also named Compass Bank and Citibank in his lawsuit.  The suit accuses both banks of negligence in allowing DeMerse to deposit Ivy Jane's money into her own accounts.

Neumann is also suing his accounting firm, Philip Vogel & Company, accusing them of failing to uncover the theft.

Criminal charges have not yet been filed against DeMerse.

Neumann has been unavailable for comment.

DEVELOPING

If this could happen to a

If this could happen to a councilman, what would be the condition of an ordinary man like us, we could just imagine. Moreover, the incidence of theft and fraud has increased many fold. Interestingly, it is happening in collusion with bank employees.it is a nice post.real estate evansville indiana

Think About The Economy

With the economy in its current state, more people will end up doing these kinds of things unfortunately. $1.8 Million in goods stolen? Jeeze...now this example is a bit too much.

The incidence of dollar

The incidence of dollar theft has increased manifold over the years. It is also common in the higher strata of the society. Often, it is committed in collusion with the acquittance and the bank agencies. It is an interesting post. isabel de rios

[Ed Note: Thanks for the information regarding weight loss scams.]

It is interesting to note

It is interesting to note that the theft occurred in one and half year time and the owner could not notice the process of depletion of dollars. It seems that either he is very wealthy or has let it go knowingly. Thanks. Michael Allen

[Ed Note: Or he could just be a very poor manager.]

Demerse scapegoat?

That... and wouldn't be interesting to look into campaign financing history...? Is DeMerse simply the scapegoat for much bigger financial issues? Obviously, the ex-Mrs. Neumann felt she could continue to build a stronger business without his involvement- financial and otherwise...

If DeMerse was just a

If DeMerse was just a scapegoat do you think Mr. Neumann would have gone forward with any civil or criminal case against her...

Neumann

...of course he would... any oppotunity to keep his name in the paper. Trying to keep himself relevant and maintain his social status is more and more difficult... without the ex-Mrs. Neumann's business to float his campaign and finance his lifestyle... things are tough all over.

[Ed Note: He actually keeps a pretty low profile--which is a great strategy for him. I'm surprised he commented on the News article.]

According to the indictment

According to the indictment it says in black and white that the theft began in October of 2002 so it would appear that this occurred over 8 years not a year and a half...

[Ed Note: Yes, it would be 8 years if she just quit stealing in October. But she has been gone for some time. We were quoting part of the civil lawsuit against her in Ellis County. You may want to talk to the Court if you feel there are inaccuracies.]

I don't think there are any

I don't think there are any inaccuracies I'm going on what was posted by the court...

Dave Neumann / Shannon Demerse

What is the latest with this case?

Thanks...

[Ed Note: Her criminal case is set to go to trial in early September. We'll be there!]

So what happened at the

So what happened at the trial? I bet she got probation....

I see the civil case is over

I see the civil case is over and Shannon Demerse has a $2.8 million dollar judgment against her...yikes!

[Ed Note: Yes, big surprise here, eh? The biggie is going to be the criminal trial.]

civil judgment against Shannon

I am going to take a big, safe leap here and say...she does not have an extra $2.8 million lying around. So, if he can't get any money from her what happens?

[Ed Note: I think this is the least of her worries. She has a criminal trial coming up that may well put her away for a few years. As far as the civil judgment, it's nothing that a good bankruptcy can't cure!]

Wait a minute, how did it

Wait a minute, how did it go from 1.9 mil to 2.8 mil?? Wow

[Ed Note: When you don't contest it in court, it doesn't matter what it is.]

still how did Neumann and

still how did Neumann and his wife fail to notice they're losing money that big?

[Ed Note: That is the $1.9 million dollar question!]

Have you actually MET Dave Neumann?

Have you actually MET Dave Neumann? At least Francis got out with her company and kids...

You mosey body pageant

You mosey body pageant freaks need to get your own lives and stop being so consumed with others lives....move on and go back to the pink boards

What is a mosey body pageant

What is a mosey body pageant? He is my councilman and he employee'd her for a long time. Just wondering how she could have gotten away with it for soooo long and how could he not know and what would stop her from using the money she stole to fund her defense. And wasn't the Shannon woman running one of these kiddy pageants,,,now talk about freak!!!! What the heck is a pink board?????

Demerse Trial

Ok why does it take so long to put this to trial? For goodness sake she is up on thief charges for stealing 1.9 mil. Lets say if she did do it, what has stopped her from using the $$ she stole to fund her lawyer/defense team? Or move the money around so it can't be found? She must be smart to get away with it for as long as she did. Just wondering... Or is someone watching to check her finances?

Councilman's Lawsuit Alleges $1.9M Dollar Theft

Any new developements on this case that you know about? Are you still following this? It seems very interesting but haven't heard anything in a while. Just wondering.

[Ed Note: Yes, there is another announcement set in the criminal case for early April. We'll let you know when it is set for trial.]

Shannon Demerse

Do you have any new information about this case? You had said you were sifting through the paperwork. Are you done yet? Thanks

[Ed Note: Picking up where I left off right now. Thanks for the boot in the ... ]

Update?

Any update on this case?? Just wondering, this is pretty big dollar amount. I hear that Neumann is getting a divorce, wondering if there is a connection? Sure alot of activity in the councilmans life, hope it doesn't keep him from doing his city hall duties to the people of Dallas??? Any update would be interesting. Thanks!

Friday 2/19/10 appears to be

Friday 2/19/10 appears to be a court date for the criminal case...

[Ed Note: Yes, it's an announcement date. Court for her is probably months out.]

announcement date

What is an announcement date?

[Ed Note: Here is a great description of the entire criminal law experience.]

shannon demerse and dave neumann

When might we see an update on this case?
Thanks.

[Ed Note: Just worked on that today. I have quite a bit of material--probably too much to put up online. But I hope to have an update shortly. I need to find out how a motion for summary judgment worked out.]

shannon demerse and dave neumann

I am sure this will sound like a broken record, but....is there going to be an update this week?

Dying to "read all about it".

thanks.

[Ed Note: I'm sure this will sound like a broken CD (record is so ... well ... our generation isn't it!) but I'm recovering from surgery. I have quite a bit of stuff to sift through. Do you think putting up the motion for summary judgment raw would be a start?]

summary judgment - Absolutely!

Absolutely!!

That will give us something to gnaw on for a while....we just want to see a little bit of what has been going on for the last several months.

Sorry to hear about your surgery. :-(

Hope you get well soon! :-)

Thanks.

Dave Neumann statement about divorce

I saw on DallasNews.com (cityhallblog) that he made a statement about going through a divorce.

Was there any statement about the lawsuit that he is a victim of?

She Runs A Business?

I don't understand something. How can someone that is in such trouble and has nothing open a new business? She now has her own screen print business and advertises it on facebook. Can she legally do that?

[Ed Note: Her own screen print business? Can you send me some more details?]

How did you find that out?

How did you find that out?

[Ed Note: Well, it's no matter now. She's in jail--probably for a long time.]

How do you know it is her business?

What is the name of the business?

It is not a secret that we

It is not a secret that we loose a huge pie of budget pie because of thefts, bribes, etc. We can't cope with it without transparent judges, and all the research papers that we are writing here can wake public opinion to provide us with "clean" government!!!

shannon is really sweet she

shannon is really sweet she was just trying to keep her kids alive

[Ed Note: Well, this is an interesting theory, tell me more!]

Sweet???

What does sweet have to do with anything? You would think she would have thought about her children before she committed the crime. Are you trying to say that Ms. Demerse committed these crimes to assist or help her children? Are they sick? I know medical cost can make prople crazy but is that the case here? I just trying to understand your comment about about she was just trying to keep her kids alive????

Keep her kids alive...

What in the world is that suppose to mean...there is nothing wrong with her kids...and there is no excuse for what she did, period!

Woah! That's a big theft

Woah! That's a big theft case. I've been following the reports progress on this.

Update

So is there any update on this case? Ya know I bet the Civil suit will just be a slap on the wrist and Newmann will get nothing back. More than likely she will be placed on probation for the criminal, so in some way's crime does pay.....It's just not right!

[Ed Note: We're looking into it right now.]

It will all come out in the criminal trial

I am sure all Dave's dirty little secrets will come out in the criminal trial. I am anxious to hear all that. I would venture to guess that he has some illegal items in his background too.

Criminal Charges

Just how long does it take to file Criminal charges in Dallas county? You would think Craig Watkins would be all over this just for coverage (you know he loves the camera). Didn't this break back in Febuary?

It appears that she has been arrested...

According to dallascounty.org, online public records, charges have been filed against her...is this true are you not keep up with this case any longer?

[Ed Note: Yes, she has been charged with first-degree felony theft and is out on $50,000 bond. We'll get something up. I wanted to go down and look at the file.]

Updates?

Do you have any new info on this case? We sure would like to know what has been happening!

[Ed Note: Our chief reporter has been sick with the flu. He'll get to it next week. He says he hates being a one-man shop :) ]

UPDATES?

What is the latest on this case?

thanks!

UPDATES on the Dave Neumann/Shannon Demerse issue?

Are you not following this case anymore? We have not seen an update in severeal weeks....Last update said you were going to go back to the court after they had the rest of the week to get caught up.

Just wonderin'.....

Thanks for any info you might have.

[Ed Note: We're in the process of getting more information right now.]

Have you been told not to writing anything?

We have not had any update since 10/28....just curious! Thanks!!

[Ed Note: Absolutely not. As a matter of fact, I'm trying to read through a rather voluminous stack of filings. Sorry it's taking so long.]

Goody!

Sorry about always asking....just curious about an update. Watch out...don't get any paper cuts going through all that paperwork!!

Get Well Soon!

Dear Chief Reporter,

Sorry you are sick with the flu!

Hope it is not the swine flu!...If it is, one good swim through the mud in the pig pen should clear you right up!!

Seriously, take care of your self. Hope you get to feeling better soon.

Sincerely,
A concerned reader

[Ed Note: Most people call me "you swine" from time to time, so it would stand to reason that I'd have the swine flu! I'll let everybody know if it is.]

Anyone got an update?

Does anyone have any news about this case?

(asking everyone....in case you are still sick, Mr. Editor.)

by the way..hope you are better now.

Neumann

That doesn't make any since, if Mr. Neumann had something illegal in his background or something to hide do you actually think he would have filed a suit against this women in the first place...and don't you think someone would have uncovered something about him by now since he is an elected official?

I believe that theft is the

I believe that theft is the worst that can only come up with! I think that people need to earn a living by honest labor!

Trial

I understand there is a trial date set for this morning. Sounds like progress?

[Ed Note: Updates coming...]