ROCHESTER, N.Y. – A brazen scheme to defraud thousands of companies out of over $8 million has landed six individuals in federal hot water. A superseding indictment unsealed today accuses John Engler, Alec Dierna, and Nicholas Scarantino of conspiracy to commit mail fraud, a charge carrying a maximum penalty of 20 years in prison and a $250,000 fine. They join previously charged defendants Tommy Lee Coburn, Kyle Paul Edward Gibson, and Heather Dierna in facing the music.
The FBI, Postal Inspection Service, and IRS-Criminal Investigations have been peeling back the layers of this operation, revealing a meticulously crafted fraud that began in January 2019. According to Assistant U.S. Attorney Richard A. Resnick, Engler initiated the scheme by sending out bogus invoices for cleaner/degreaser products to large companies across the United States. The pitch? Victims would believe they’d previously ordered – and received – the goods. Dierna was brought in to help in August 2020, with Coburn and Heather Dierna joining in January 2021, Gibson in February 2021, and Scarantino in July 2021, expanding the reach of the con.
The targets weren’t chosen at random. Investigators say large corporations were specifically selected because their accounts payable departments were less likely to scrutinize smaller invoices during the height of the COVID-19 pandemic. The relatively low amounts billed – designed to fly under the radar – coupled with the fact that accounts payable staff typically don’t directly order supplies, created the perfect storm for this deception. The invoices originated from both Florida and Rochester, adding a layer of complexity to the investigation.
But the defendants didn’t just rely on lax oversight. The fraudulent invoices were cleverly disguised, containing fine-print disclaimers on page two stating the documents were merely “solicitations” and carried no obligation to pay. This was a calculated attempt to provide plausible deniability should they be questioned, allowing them to falsely claim they were simply seeking future business. It was a thin veil, and one that ultimately failed.
The scheme ensnared approximately 5,458 companies, who collectively paid out a staggering $8,010,543.50 to the sham companies set up by the defendants. After raking in the cash, the conspirators attempted to cover their tracks by sending inexpensive cleaning products to the victimized businesses – a pathetic attempt at damage control. Several companies within the Western District of New York were hit, including those in Henrietta, Lakewood, Brockport, Andover, Rochester, Avon, Tonawanda, and Niagara Falls.
Special Agent-in-Charge Matthew Miraglia of the FBI, Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service, and Special Agent-in-Charge Thomas M. Fattorusso of the IRS-Criminal Investigations all contributed to the investigation. It’s crucial to remember, as the Department of Justice stresses, that an indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law. This case serves as a stark reminder that even the most sophisticated schemes will eventually be exposed.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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