Darrell Pike, Mail Fraud, Massachusetts 2022

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Table of Contents

Boston Man’s 16-Year Embezzlement Scheme Unravels

A California man has pleaded guilty to embezzling over $1.2 million from his Massachusetts employer over a 16-year period.

Darrell Pike, 56, of Hesperia, California, was the general manager of an Ontario, California subsidiary of a supply and service company based in Wilmington, Massachusetts. 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 defendant was charged in May 2022 and pleaded guilty to one count of mail fraud. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for February 3, 2023.

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. The investigation was led by the FBI’s Boston Division.

The case is being prosecuted by the U.S. Attorney’s Office for the District of Massachusetts. The case is being investigated by the Federal Bureau of Investigation, Boston Division. The matter was brought to the attention of law enforcement by the company that was defrauded.