Staff Report

Emily Zelaya

ROCHESTER — A Mishawaka woman was arrested for allegedly committing significant employee fraud at a Rochester business.

Emily Zelaya, 31, Mishawaka, is charged with two counts of fraud, both level 5 felonies; and counterfeiting, a level 6 felony.

On March 12, a Rochester Police officer responded to a report of employee fraud at TOPP Industries. The officer was told Zelaya, the head of human resources at the business, was writing fraudulent checks to herself. Representatives for TOPP Industries were alerted to the fraud by individuals from the business’s payroll administration site.

According to court documents, the business’s management said the fraudulent checks totaled approximately $50,000 to $100,000. When management confronted Zelaya about the incident on March 11, she removed her belongings from her office and did not return to work on March 12.

Management said when an employee was terminated at the company, Zelaya allegedly paid them out two or three weeks past their termination date, directing that pay into her own bank account. It was also determined there were instances where Zelaya assigned current employees a referral bonus, even when they never referred any applicants. These “bonuses” were then directly deposited into Zelaya’s personal accounts.

It was noted that most of these large “bonuses” surrounded a timeframe where Zelaya took her family on vacation. Law enforcement also found forged direct deposit forms that were determined to be written by Zelaya.

Four debit cards that were alleged to be issued to employees were identified as fraudulent. Through surveillance footage at local banks, Zelaya was identified as the person using the fraudulent cards to make ATM withdrawals.

Upon further investigation, law enforcement and TOPP Industries’ representatives learned Zelaya had been hiding the fictitious payments in payroll spreadsheets she would send to management. The Excel spreadsheets had hidden rows in them.

There were also other strategies Zelaya used to hide her actions. In some instances, Zelaya allegedly changed payroll records after they were approved by management.

As the investigation is still ongoing, law enforcement thus far has determined Zelaya embezzled $78,025.78. Since her fraud was done through payroll, TOPP Industries paid taxes on that money.

The money was stolen via 62 different direct deposits, in the names of 24 different employees.

Representatives for TOPP Industries noted their financial loss from Zelaya’s crimes is “significantly great.” Between paying accountants to fix financial statements, advisory fees, and other costs, representatives estimated their total loss to be between $153,000 to $178,000.

For the employees who Zelaya embezzled money from in their name, each employee will be forced to go back and amend their 2024 tax returns.

Zelaya was booked in the Fulton County Jail on April 23.