Garry W. Arnold, Defrauding Exxon Mobil, Texas 2010

Former Exxon Mobil Employee Sentenced for Defrauding Company of $1 Million

Garry W. Arnold, a former employee of Exxon Mobil Chemical Company, has pleaded guilty to defrauding the company out of more than $1 million. The scheme, which occurred between 2004 and 2010, involved Arnold carrying out a fraudulent invoicing scheme where Exxon Mobil paid for furnace parts and fabrication services that were never provided or were provided with materials already owned by the company.

According to the United States Attorney Kenneth Magidson, Arnold was employed by Exxon Mobil from 2004 to 2010 at the company’s Baytown Olefins Plant. During this time, he controlled and was part owner of Metal Blinds Unlimited Inc., a company with minimal legitimate business operations that operated out of his residence.

The scheme resulted in Exxon Mobil creating approximately 78 purchase orders and paying at least $1 million to One Source Industrial for work purportedly done by Metal Blinds. Arnold received at least $1 million in association with these invoices through his sham corporation. The other person involved in the scheme also paid approximately $310,253.20 to Arnold as part of the concealed profit-sharing agreement.

U.S. District Judge Ewing Werlein Jr. accepted Arnold’s plea and has set sentencing for December 13, 2013. At that time, Arnold faces a maximum penalty of 20 years in federal prison and a $250,000 fine or twice the pecuniary gain or loss.

The case is being investigated by the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney John Pearson. The scheme highlights the importance of internal controls and oversight in preventing corporate fraud.

As the investigation and prosecution of this case demonstrate, the U.S. government will vigorously pursue those who engage in corporate fraud and other white-collar crimes.

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