Examples of Corporate Fraud Investigations - Fiscal Year 2014
The following examples of corporate fraud investigations are written from public record documents on file in the courts within the judicial district where the cases were prosecuted.
CEO of Debt Collection Agency Sentenced for Role in Multi-Million Dollar Fraud Scheme
On December 19, 2013, in Bridgeport, Conn., Peter Pinto, of East Quogue, N.Y., was sentenced to 48 months in prison and five years of supervised release. Pinto pleaded guilty on May 11, 2012 to one count of conspiracy to commit wire fraud, bank fraud and money laundering and wire fraud for his role in a multimillion dollar fraud scheme at Oxford Collection Agency, where Pinto served as Chief Executive Officer. According to court documents and statements made in court, Oxford Collection Agency was a private financial services company that engaged in accounts receivables management, primarily debt collecting. Businesses and other entities contracted with Oxford to collect debts on their behalf. Oxford collected debts from consumers under the pretense that it would report all such collections to its clients and remit the appropriate amount to the client. However, Pinto and other Oxford executives routinely caused Oxford to collect debts that were never remitted to its clients. The co-conspirators referred to these unremitted collections as a client’s “backlog.” To hide the backlog, co-conspirators would make periodic fraudulent collection reports to certain clients that under-reported the amount of funds collected. Pinto and others diverted various funds from their client remittances and used them for their own needs. Oxford’s victims lost more than $10 million as a result of this scheme. The investigation also revealed that Oxford sometimes obtained and retained business with its banking clients by paying bribes and kickbacks to bank officials. Five other Oxford executives have pleaded guilty, including Pinto’s father and Chairman of the Board, Richard Pinto. Richard Pinto was sentenced to 60 months in prison. The other defendants await sentencing.