Keo Nang Xiong, 33, of Maplewood, has been charged in Hennepin County District Court with 2 counts of theft by swindle. According to the charges, she wrote 113 checks to herself on Hot Spring Spas' account starting in August 2024, worth $767,500 in all, and signed the company owner's name on them. The scheme allegedly ran for nearly 2 years.
Xiong had worked at Hot Spring Spas for 10 years. The charges say her job as assistant comptroller at the company's Bloomington production facility "gave her access to the business' accounts and checks." The company itself is based in Southern California. After the money landed in her personal account, prosecutors say she withdrew it at bank ATMs and at ATMs inside Treasure Island Resort and Casino near Red Wing.
Writing 113 checks is not a one-time slip. It's a routine, and according to the charges it went on for close to 2 years before anyone stopped it. That should worry any small-business owner who approves payroll or vendor checks without a second person watching the account.
The case shows a weak spot that's common at smaller, closely held businesses: one trusted person holds the checkbook and almost nobody checks their work. Forged signatures and self-written checks are the textbook example forensic accountants and business insurers give when they urge companies to split up financial duties. They say that applies even to shops too small for a full accounting department. Monthly bank statements that go straight to the owner, unopened by anyone else, are a cheap place to start.
The charges are allegations. Xiong has not been convicted.
