Andrew Garson, a senior public relations firm executive, has been charged with a multimillion-dollar wire fraud scheme that left his former employers with losses of over $2 million. Garson, who was named a “40 Under 40” public relations executive by PR Week Magazine, allegedly used his position to lie to his employers and cause fraudulent interstate wire transfers of funds.
According to the allegations contained in the Indictment unsealed in Manhattan federal court, Garson was employed at two different marketing/public relations agencies located in New York, New York, between 2013 and 2018. In his respective roles at those two firms, Garson was responsible for working directly with clients, coordinating various marketing and public relations campaigns, and managing vendor relationships in connection with such campaigns.
However, instead of using his skills to benefit his employers, Garson allegedly engaged in a scheme to lie to his two employers, which fraudulently induced interstate wire transfers of funds and caused his employers millions of dollars in losses. One such series of misrepresentations by Garson resulted in the unauthorized payment by PR Firm-2 of expenses owed to vendors in connection with marketing campaigns led by Garson while employed at PR Firm-1. Over the course of Garson’s first several months of employment at PR Firm-2, Garson lied to certain vendors, stating that PR Firm-2 had agreed to cover expenses still owed to those vendors related to Garson’s prior projects at PR Firm-1. In fact, PR Firm-2 did not authorize the payment of those expenses.
In order to cause PR Firm-2 to effect payment of these expenses, Garson created fraudulent invoices falsely claiming that the vendors were due payment for work performed on PR Firm-2 projects. In this fashion, Garson caused PR Firm-2 to pay substantial expenses to vendors with which Garson had worked on projects while employed at PR Firm-1, thereby causing losses to PR Firm-2 in excess of $2.5 million.
Additionally, while employed at PR Firm-1, Garson used his corporate credit card for unauthorized personal expenses. For example, in or about August 2017, Garson purchased a luxury watch using his PR Firm-1 corporate credit card for approximately $14,000, claiming that that the expense related to event production for a client marketing event. Garson later sold the watch to a New Jersey jewelry store in or about December 2018 for approximately $4,000. Garson deposited the money that he earned from the sale of the watch into his personal bank account.
Garson’s scheme did not stop there. He also defrauded PR Firm-2 with respect to the unauthorized use of his corporate credit card. For example, Garson submitted expense reports to PR Firm-2 claiming that he had incurred certain expenses related to his work at PR Firm-2, when in fact he had incurred those expenses while working at PR Firm-1. Garson’s scheme to defraud his employers and obtain New York State unemployment insurance benefits to which he was not entitled has left a trail of financial devastation in its wake.
“As a public relations executive, Andrew Garson’s expertise in garnering positive attention for his clients is well known, even earning him a spot on the ’40 Under 40′ in a popular industry magazine,” said Manhattan U.S. Attorney Geoffrey S. Berman. “But behind the scenes, Garson allegedly schemed to steal from his employers, eventually costing them over $2 million in losses. Andrew Garson has likely generated his own (negative) publicity, and now faces the possibility of serious time in federal prison.”
USPIS Inspector in Charge Philip R. Bartlett added, “As alleged, Mr. Garson’s arrogance and disrespect for his employers and the rule of law was on full display in this case. He allegedly lied and stole from his employers to feed his greed and fund his personal endeavors. Mr. Garson may have plenty of time to utilize his keen public relations skills if convicted of the charges.”
Garson was arrested today and is expected to appear in court tomorrow. If convicted, he faces a maximum sentence of 20 years in prison. The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of New York.
Related Federal Cases
- Ijaz Butt Sentenced to 63 Months for Credit Card Fraud, New York NY… · Pennsylvania
- William E. Grobes IV, Wire Fraud and Money Laundering, VA 2024 · Virginia
- Katherine Grobes, Wire Fraud Conspiracy, VA 2024 · Virginia
- John Desantis, Securities and Wire Fraud, NY · Pennsylvania
- Michael Conway, Wire Fraud, New Jersey 2016 · Pennsylvania
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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