Williamsville man sentenced for wire fraud — again

 

Date: January 16, 2020

Contact: newsroom@ci.irs.gov

BUFFALO, N.Y. — Robert C. Logel of Williamsville, NY, who was convicted of wire fraud and tax evasion, was sentenced to serve 51 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.

In 2009, the defendant was convicted of wire fraud for defrauding two victims out of nearly $3,000,000 and sentenced to 48 months in prison. Logel told the victims that he invested their money in various businesses when, in fact, he used the funds himself.

Within months of being released from prison, Logel entered into a scheme involving the production, distribution, and sale of two skin and healthcare products. During the course of the scheme, the defendant made false representations regarding his ability to distribute and market such products. As a result, victims, including QuadPharma, a pharmaceutical manufacturing company located in Clarence, NY, transferred funds to Logel which they believed would be used to ready the products for distribution and sale. The defendant did not, however, use the victims' money as promised. Rather, Logel used the vast majority of the funds for his personal use, including car payments, college tuition, rent for his and his girlfriend's apartments, and cosmetic surgery. QuadPharma suffered a loss of approximately $417,120. Six other victims suffered a total loss of approximately $143,176.

In addition, the defendant failed to file income tax returns for the tax years 2004 through 2007, resulting in a loss of $5,574,837.38 to the Internal Revenue Service.

The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Jonathan D. Larsen and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.