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California Man Pleads Guilty to Defrauding His Massachusetts Employer Over a 16-Year Period Using Fake Staffing Agency

The United States Attorney’s Office for the District of Massachusetts annouced that a man pleaded guilty to charges stemming from his scheme to defraud his employer by making payments to a fake staffing agency.

BOSTON – A California man pleaded guilty today in federal court in Boston to embezzling over $1.2 million from his employer over a 16-year period.

Darrell Pike, 56, of Hesperia, Calif., pleaded guilty to one count of mail fraud. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Feb. 3, 2023. Pike was charged in May 2022.

Pike was the general manager of an Ontario, Calif. subsidiary of a supply and service company based in Wilmington, Mass. Between approximately 2005 and 2021, Pike prepared and submitted fraudulent invoices to his employer on behalf of a fake temporary staffing company, Consumer Information Systems (CIS), for staffing services CIS purportedly provided at his employer’s Ontario location. Pike added approving initials of company personnel to the invoices without their knowledge or consent. Through the fraudulent invoices, Pike caused the company to pay approximately $1,271,206 to CIS, which he deposited into a bank account he controlled.

The charge of mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.

Source: District of Massachusetts | California Man Pleads Guilty to Defrauding His Massachusetts Employer Over a 16-Year Period | United States Department of Justice

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