Judge: ‘You treated the victim like your personal ATM’

An Everett man was sentenced to two years in prison in a $1 million embezzlement scheme of a friend.

MUKILTEO — The co-founder of a Mukilteo-based commercial flooring company must serve two years behind bars for embezzlement, a U.S. District Court judge ruled Friday.

David Gluth, 47, of Everett, founded Gluth Contract Flooring in 2007 with a friend who invested $500,000 in the company’s startup. For years, Gluth went behind his friend and business partner’s back to take money from company accounts to pay for “luxury” vacations, liquor, Nordstrom shopping and his home mortgage, according to court records.

Gluth and the company bookkeeper allegedly worked together in schemes to commit fraud through the company from 2011 to 2016. The pair engaged in “numerous acts of deceit and concealment,” federal charging papers say, including fraudulently applying for and receiving loans, forging business records, lying to Gluth’s business partner and refusing to turn over records the partner was legally entitled to have. The bookkeeper also is facing criminal charges, according to court records.

The pair opened up numerous bank accounts in the company’s name without informing, or getting consent, from Gluth’s business partner. Gluth and the bookkeeper allegedly discussed fraud schemes and plans on instant messenger. In one conversation on Feb. 10, 2014, Gluth messaged the bookkeeper about applying for a loan with a company account.

“I’m doing it without (the business partner’s) knowledge,” Gluth wrote, “So if anything goes wrong it won’t be good.”

The pair was accused of forging a driver’s license using the business partner’s name in 2015. The fake ID had a photo of a different company employee on it.

In 2016, the company went bankrupt. An FBI investigation found that over $1 million was lost through improper personal purchases, improper disposal of assets and unauthorized debt incurred at the business.

Gluth was charged with embezzlement in November 2020. The Everett man pleaded guilty to felony wire fraud in January. In addition to prison time, Gluth must pay his business partner $325,000 in restitution.

“You treated the victim like your personal ATM,” U.S. District Court Judge Richard A. Jones told Gluth at his sentencing hearing. “Your return on (your friend’s) investment was to orchestrate a significant and devastating fraud.”

The bookkeeper was indicted in federal court for felony wire fraud in July 2020. As of Friday afternoon, she had not entered a plea.

Ellen Dennis: 425-339-3486; edennis@heraldnet.com; Twitter: @reporterellen

Talk to us

More in Local News

Members of South County Fire practice onboarding and offboarding a hovering Huey helicopter during an interagency disaster response training exercise at Arlington Municipal Airport on Tuesday, June 6, 2023, in Arlington, Washington. The crews learned about and practiced safe entry and exit protocols with crew from Snohomish County Volunteer Search and Rescue before begin given a chance to do a live training. (Ryan Berry / The Herald)
Snohomish, King counties train together for region’s next disaster

Dozens of agencies worked with aviators Tuesday to coordinate a response to a simulated earthquake or tsunami.

Police stand along Linden Street next to orange cones marking pullet casings in a crime scene of a police involved shooting on Friday, May 19, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Lake Stevens man identified in Everett manhunt, deadly police shooting

Travis Hammons, 34, was killed by officers following a search for an armed wanted man in a north Everett neighborhood.

Funko mascots Freddy Funko roll past on a conveyor belt in the Pop! Factory of the company's new flagship store on Aug. 18, 2017.  (Dan Bates / The Herald)
Lawsuit: Funko misled investors about Arizona move

A shareholder claims Funko’s decision to relocate its distribution center from Everett to Arizona was “disastrous.”

Lynnwood
1 stabbed at apartment in Lynnwood

The man, 26, was taken to an Everett hospital with “serious injuries.”

A firefighting helicopter carries a bucket of water from a nearby river to the Bolt Creek Fire on Saturday, Sep. 10, 2022, on U.S. Highway 2 near Index, Washington. (Ryan Berry / The Herald)
Red flag fire warning issued west of Cascades

There are “critical fire weather” conditions due to humidity and wind in the Cascades, according to the National Weather Service.

A house fire damaged two homes around 1:30 a.m. Tuesday, June 6, 2023 in Marysville, Washington. (Photo provided by Marysville Fire District)
Fire burns 2 homes in Marysville, killing 2 dogs

Firefighters responded to a report of a fire north of Lakewood Crossing early Tuesday, finding two houses engulfed in flames.

A transit rider steps onto a Community Transit bus on Tuesday, Jan. 3, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Police: Passenger randomly stabs man in neck on bus in Everett

The two passengers reportedly did not know each other before the attack. Police arrested a suspect hours later.

Logo for news use featuring the municipality of Mountlake Terrace in Snohomish County, Washington. 220118
Mountlake Terrace eyes one-time projects for $2.4M in federal funds

Staff recommended $750,000 for a new roof and HVAC at the library, $250,000 toward a nonprofit facility in Lynnwood and more.

The Snohomish River turns along the edge of the Bob Heirman Wildlife Preserve at Thomas’ Eddy on Wednesday, May 3, 2023 in Snohomish, Washington. (Olivia Vanni / The Herald)
To build a healthier Snohomish River, more log jams

About $2.8M in grants will help engineer log jams, tear down levees and promote salmon restoration at Bob Heirman Wildlife Preserve.

Most Read