Examples of Corporate Fraud Investigations - Fiscal Year 2017
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.
San Antonio Businessman Sentenced for Tax and Wire Fraud Scheme
On Nov. 17, 2016, in San Antonio, Texas, Robert Warren Scully, former owner of San Antonio-based Gourmet Express, LLC, was sentenced to 180 months in prison, three years of supervised release and ordered to pay $1,206,539 restitution to the IRS, plus a $5,000 fine for his role in an estimated $5.3 million tax and wire fraud scheme. From April 2001 until July 2009, Scully and others conspired to defraud the IRS by hiding earned taxable income generated by his frozen food business. Scully and others used intermediary companies in Thailand to provide shrimp and other ingredients at an inflated cost to Gourmet Express, thereby also defrauding his co-owners. Scully and others used the proceeds generated as a result of the inflated costs for personal expenses and failed to disclose that income to the IRS.
Texas Businessman Sentenced for False Tax Returns, Fraud and Money Laundering
On Oct. 25, 2016, in Austin, Texas, Sean James Hager was sentenced to 42 months in prison, three years of supervised release and ordered to to pay restitution of $1,164,161 to Velocity Electronics and restitution of $368,611 to the IRS. During 2008-2011, Hager was employed by Austin-based Velocity Electronics, where he was responsible for purchasing computer parts for resale to Dell. Unbeknownst to Velocity, Hager also operated Echt Electronics, a company through which Hager acquired computer parts and sold them to Velocity at a significant mark up. Hager earned more than $1 million in profits from Echt during 2008-2011; however Hager failed to disclose to his tax return preparer the profit he earned through Echt. As a result, Hager’s income tax returns substantially understated his income and the amount of income tax he owed.
Illinois Man Sentenced On Fraud and Money Laundering Charges
On Oct. 25, 2016, in St. Louis, Mo., Adam Bernaix, of Edwardsville, was sentenced to 37 months in prison and ordered to pay $427,713 in restitution to the victim of his crime. Bernaix earned approximately $350,000 through Trident Management Solutions, a company he created solely to bill companies doing business with his employer. Bernaix submitted invoices for “services rendered” to companies doing business with his employer, Albert Arno, an HVAC contractor in St. Louis. Bernaix, as a project manager for Albert Arno, was able to mark up the invoices of Trident’s clients to Albert Arno so that his employer provided the extra money needed for Trident’s clients to pay their Trident bills. Bernaix employed his father-in-law at one point to perform occasional jobs but even after Trident’s sole employee left the company and Trident did absolutely nothing for its clients, Bernaix still sent Trident clients bills and marked up the client’s Albert Arno bills sufficiently to keep the money flowing to Trident.