My neighbor (who I do not know personally - saw it in the local rag) just got indicted by a Federal Grand jury of mail fraud. He, along with another person embezzled about $500,000 from their employer by setting up two fake service companies and submitting invoices for work never performed.
The nature of the particular industry makes this plausible. The employer is a large multi-national and my neighbor ran the local office.
The employer’s head office subsequently sent payment to the fake companies in the form of checks which were then somehow cashed by my neighbor and his accomplice.
They also set up a third company, took in invoices for real work performed from bona fide vendors, marked them up, submitted those to the employer as if coming form the third company, received payment, banked the profits and paid the original billing vendor.
Apparently they did this almost 3,000 times over a period of 5 years. How they were caught I do not know (but would be interested in your theories).
Anyway, the indictment seeks the return or forfeiture of approx $500K.
They both face a maximum sentence of 20 years in prison for conspiracy to commit mail fraud. My neighbor also faces a maximum sentence of 20 years for each of 4 counts of mail fraud.
Will he do time?
His house is probably not paid off and worth about $350K so how will they get the half mill back?
Sad for his wife and kids who seem very nice.
Excitement in the hood!
