Pittsburgh CEO Pleads Guilty in $2.8M Wire Fraud Scam

GRIMY NEWS: Pittsburgh’s Ronald A. Moog, the President of Moog Transfinancial Services, has pleaded guilty to orchestrating a staggering $2.8 million wire fraud scheme.

The 78-year-old Pittsburgh native admitted to siphoning off funds meant for freight bill payments into a trust account over a period of 13 years. Moog’s fraudulent actions resulted in a shortfall of over $2.8 million that was ultimately passed onto victim companies, who believed they had already settled their bills.

According to court documents, Moog used his position as President of the auditing firm to inform clients of the necessary payments for their freight charges. The unsuspecting victims then sent the money to Moog, who pocketed it instead of using it as intended. This fraudulent scheme went undetected for nearly a decade and a half.

Moog now faces serious penalties for his crimes. United States District Judge Nora Barry Fischer scheduled sentencing for April 4, 2014, at which time Moog could be sentenced to up to 60 years in prison, fined $750,000, or both. The severity of the sentence will depend on the seriousness of the offenses and any criminal history the defendant may have.

Assistant United States Attorney James T. Kitchen is handling the prosecution of this case for the government. The investigation that led to Moog’s arrest was conducted by the United States Postal Inspection Service.

Pending sentencing, Moog remains on bond. This case serves as a stark reminder of the lengths some will go to in the pursuit of financial gain at the expense of unsuspecting victims.