Federal Employee Stole $150k from VA Retail Store to Fund His Gambling Habit

Glenn Bates - Saline HS Coach and VA Employee__1431128956_159.118.232.73

Glenn Bates Also Coached Boys Baseball and Girls Basketball for the Saline High School

A one-time federal employee has admitted to embezzling up to $150,000 from a Veterans Affairs retail store, money which was used for gambling sprees, hiring prostitutes, and trips to the strip club. Glenn Alan Bates, a 57-year old man from Saline, Michigan, masterminded a scheme to steal money from a VA retail outlet, also known as a “canteen”.

Bates managed the canteen in a Ann Arbor when he began robbing the business of money, says a criminal complaint filed in federal court. Glenn Bates could face up to 10 years in prison, if he’s found guilty of the crimes.

May 2013 Investigation

The investigation in his wrongdoing began in May 2013, when a routine audit found that $478,000 was missing from the canteen, which sells food, clothing, and electronics. The canteen is part of the VA Ann Arbor Healthcare System on Fuller Road, which ordered an investigation in the missing funds. Soon, Glenn Bates became the focus of the investigation.

An investigation launched by the VA’s Office of Inspector General focused on the sale of vending machines, commemorative military hats, and smaller retail items. Bates managed the store from May 2006 until March 2013, so he was in a perfect position to steal from the VA. Despite more than $450,000 coming up missing, Glenn Bates claims he stole closer to $150,000.

Bates Had Long Criminal Past

The VA hired Glenn Bates to be its canteen manager, despite Bates’ long criminal history. The U.S. Pretrial Services Agency says he spent 18 months in a federal prison in the 1970s for stealing cars. In 1992, he was charged with felony arson and received probation.

Bates’ ability not only to find gainful employment, but gain management positions, continues unabated. When the judge asked Bates where he worked and what position he held, Bates replied that he worked at Wal-Mart and was an “overnight supervisor”.

Spent Money on Gambling and Strippers

Bates was released on a $10,000 unsecured bond on Tuesday, but not before he told investigators of the stolen money he spent on strippers and gambling binges. Bates spent money at casinos, including the Indiana Grand Casino near Indianapolis and the Firekeepers Casino in Battle Creek. When asked for details or comments, neither Bates nor his court-appointed lawyer, Stacey Studnicki, gave a comment.

Most of the money was spent buying the attention of women. Bates spent a good bit of money on a stripper named “Ashley”. Ashley danced at an Ohio strip club which Bate often frequented. He told investigators he spent up to $500 a night on drinks and lap dances.

Relationship with a Dancer

VA Special Agent Frederick Lane wrote in a court filing that the relationship escalated. Lane said, “After visiting the club numerous times, Glenn Alan Bates convinced Ashley to come to his hotel room for sex, for which he paid her.”

These trysts became frequent, though they were not exclusive. Instead, Bates met with other strippers and prostitutes, living a seedy lifestyle fueled by the money he stole.

Stole Cash to Feed Addiction

Special Agent Lane said that Bates claimed he had a addiction, which is why he began stealing cash from the canteen. Lane wrote, “Glenn Alan Bates stated he became addicted to the sexual encounters and he stole cash from the canteen to pay for this addiction.”

Before his arrest, Glenn Bates was active instructing youths. He was an assistant coach on the varsity girls’ basketball team and the varsity boys’ baseball team, while serving the role as statistician for the varsity football team. When the Saline Post reached the high school for a comment, a school official said Glenn Bates no longer had any connection with the sports programs, “effective immediately”.

Embezzlement and Corruption

Government employees and corporate executives are among those most prone to theft and embezzlement crimes for the sake of gambling debts. The access to large sums of money appears to be a remedy for someone facing spiraling debt, because the wrongdoing often goes unnoticed for years. Michael Dennehy, an accountant for an energy company in San Antonio, went to prison last year for such crimes. Also in 2014, a Nevada bureaucrat was found guilty of buying and selling government equipment online to fund his gaming habits. He was only found out when a package arrived during his vacation.

Such graft and corruption is not limited to this company, and is not exclusive to any one socio-economic class. Henry Kakavas, a billionaire problem gambler in Australia lost $1.5 billion and embezzled from his corporation to keep gambling at the Crown Casino in Melbourne. An architect in South Australia stole hundreds of thousands of dollars to keep his habit going. Anytime a gambling addict has access to large sums of private or public money, the danger exists that crimes like the ones Glenn Bates committed will happen.