Ex-credit manager of Allen-Edmonds Shoe Corp and the owner of Van's Shoe Shop in Milwaukee are among six people charged with fraud in a scheme that conned Allen-Edmonds out of $1.2 million.

Those charged were former credit manager Jill McBrayer, Van's owner Lawrence Reese, Joseph Lalota Jr and Charles Yellen, owners of Principal Credit Corp of New York, Simuel Burrell, a shoe dealer in Orlando, and Joseph Scorsone, a shoe dealer in Philadelphia, a criminal complaint filed in federal court in Milwaukee said.

McBrayer created suspicion when she left just before end-of-year bonuses were typically rewarded back in November 2003, according to an FBI investigation.

McBrayer has reportedly pleaded guilty to referring accounts already paid to Principal Credit for collection, which meant that Principal could bill Allen-Edmonds for collecting the accounts and send kickback amounts to her.

She is also accused of making illicit accounting reports to benefit shoe dealers, in exchange for kickbacks, and then misapplying some of the payment to smaller dealers.
 
 A hearing for the case has been scheduled for 14 September.