Husband, wife arrested on fraud charges

NORFOLK, Va. (WAVY) - A Virginia Beach couple has been arrested following accusations they embezzled millions from the wife's employer.

Terri Lynn Nagy-Phillips, 41, and Craig Phillips, 42, both of Portsmouth, Va, are facing charges of conspiracy, wire fraud and mail fraud.

Last year, Continental Realty Service contacted the police department's Economic Crime Unit to report that an employee had been embezzling money. According to the company, between January 2007 and October 2011 nearly $3 million was stolen from business accounts.

Based on an investigation by Virginia Beach police, a search warrant was executed on the couple's Portsmouth home.

Teri was employed by Continental Realty Service. During their search, police say they recovered "substantial property linked to this embezzlement".

Police also searched a warehouse storage facility in the 400 block of London Bridge Road in Virginia Beach.

According to police, the recovered items included; seven luxury vehicles, jewelry, a Harley Davidson motorcycle and a transport trailer.

According to Commonwealth's Attorney Neil MacBride, the couple made over $450,000 in fraudulent charges on a company credit card, including airfare and jewelry from a store located in the Caribbean.

Terri also allegedly wrote herself checks from her employer's account, depositing the amounts into her and her husband's bank account.