Demasi Gets 37 Months for $600K Sports Merch Scam

PITTSBURGH, PA – Andrew A. Demasi, 63, of Natrona Heights, Pennsylvania, is headed to federal prison after being sentenced to 37 months for running a brazen fraud scheme that bilked manufacturers, wholesalers, and shipping companies out of over $600,000. U.S. District Judge Maurice B. Cohill handed down the sentence today, along with three years of supervised release and an order to pay $601,470.31 in restitution.

Demasi, along with his partner Ronald Halpern, operated A & R Services, Inc. out of a Pittsburgh apartment. The business purported to deal in sports-related merchandise and novelty items, but was, in reality, a carefully constructed house of cards built on lies. Between April 2007 and September 2007, the pair systematically defrauded businesses by securing credit lines based on falsified financial information.

The scheme was simple, yet effective. Demasi and Halpern would apply for credit from manufacturers and wholesalers, promising payment for merchandise they had no intention of delivering. They then leveraged interstate shipping companies, like FedEx, to deliver the goods, knowing full well they wouldn’t cover the shipping costs either. One notable instance involved a shipment from Pro Specialities Group, Inc. in San Diego, California, obtained under the same false pretenses.

This wasn’t a spur-of-the-moment decision; it was a calculated effort to enrich themselves at the expense of legitimate businesses. Federal prosecutors presented evidence detailing the extent of the fraud, exceeding $600,000 in total losses. Assistant U.S. Attorney Carolyn J. Bloch successfully prosecuted the case, bringing Demasi to justice.

This isn’t the first conviction in this case. Ronald Halpern previously pleaded guilty before Judge Arthur Schwab and received a 24-month prison sentence in May 2013. The investigation, spearheaded by the Federal Bureau of Investigation and the Office of the United States Trustee, demonstrates a commitment to tackling white-collar crime in the region.

U.S. Attorney David J. Hickton, speaking today, emphasized the importance of holding fraudsters accountable. “This sentence sends a clear message: those who attempt to profit through deception will face the full force of the law,” he stated. Demasi’s case serves as a stark reminder that even seemingly low-risk schemes can carry significant penalties, and that federal authorities are actively pursuing those who engage in fraudulent activities.”