NEW YORK - Melissa King was arrested on charges of embezzling tens of millions of dollars from the employee benefit plans she administered on behalf of the Compressed Air and Free Air Foundations, Tunnels, Caissons, Subways, Cofferdams, Sewer Construction Workers Local 147 of New York, New Jersey States and Vicinity AFL-CIO ("Local 147"). King was arrested at her Irvington, New York residence by DOL-OIG and IRS agents.

King provided administrative services to the Local 147 Funds through the company that she controls, King Care LLC ("King Care").

Between 2002 and 2008, KING caused at least $42 million to be transferred, in the form of checks, from the bank accounts of the Local 147 Funds into a bank account controlled by King Care (the "King Care Account").

Moreover, between 2002 and October 2009, tens of millions in embezzled funds were transferred out of the King Care account through check, wire transfers, and other means in transactions that appear unrelated to the Local 147 Funds. These transactions included at least: $7 million paid to American Express; $3 million paid to various entities that sell, maintain, and transport horses; $700,000 paid to a diamond company; $500,000 transferred to E-Trade Securities; $300,000 paid to Neiman Marcus; $150,000 paid to the Ritz Carlton Palm Beach; $10 million transferred to other bank accounts held by King Care; and $600,000 transferred to the "Trust Agreement between Jerome and Mabel King."

King's contract with the Local 147 Funds was terminated as of December 31, 2008.

King, 58, is charged with one count of theft and embezzlement in connection with employee benefit plans, and eight counts of money laundering. If convicted, she faces a maximum sentence of five years in prison on the embezzlement count, and 10 years in prison on each of the eight money laundering counts; all nine counts also carry a maximum fine of $250,000, or twice the gross gain or loss from the offense.