HOUSTON – The grimy halls of justice were graced with another conviction as former Houston businessmen Larry Allen Page and John A. Elsner faced the brunt of their fraudulent actions, both sentenced to federal prison for a scheme that siphoned over $5 million.
In what can only be described as a stunning betrayal of trust, 67-year-old Page was handed a sentence of 15 months behind bars and ordered to pay $5,467,532.54 in restitution. His co-conspirator, Elsner, aged 53, received a 51-month prison term and was told to cough up $5,579,532.54. Both are also facing years of supervised release.
The fraudulent invoice scheme was masterminded by Elsner, who ran Logistical Solutions International Inc. (LSI) as general manager and president. Page, his vice presidential lackey, played the role of financier. The duo not only deceived a business lender out of more than $4 million but also investors, who lost $1.5 million.
Over four years, the amount swindled through false invoices increased each year. Judge Nancy F. Atlas took into account the repetitive nature and duration of the crime in determining their sentences.
LSI provided logistical support to international visitors on assignment, predominantly serving the oil and gas industry in the Middle East. The pair sold falsified LSI invoices under false pretenses, leading to a debt of $4,037,532.54 owed to the factoring company before their scheme collapsed.
The investigation was a joint effort by IRS – Criminal Investigation and the Secret Service, with Assistant U.S. Attorney Melissa Annis leading the prosecution. Both Page and Elsner were allowed to remain on bond until surrendering to a U.S. Bureau of Prisons facility in the near future.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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