Michael Guzman, 43, of Denver, N.C., has pleaded guilty to federal charges for defrauding his former employer of more than $4 million.
According to the filed criminal information to which Guzman pleaded guilty, from June 2019 to May 2020, Guzman executed a scheme to defraud his employer, identified in court documents as Company A, of more than $4 million, by improperly auctioning off Company A’s assets and funneling the proceeds through shell companies he formed to perpetuate the fraud.
Guzman was employed by Company A from March 2008 until the company fired him for his conduct in May 2020. Company A is a large equipment rental company headquartered in Fort Mill, S.C., that rents out on-road and off-road machinery for construction and other purposes.
As Guzman admitted in court today, during the relevant time period, he arranged for approximately 398 assets of Company A to be auctioned off through an online auction house that buys and sells used heavy construction equipment, referred to in court documents as Company B. To perpetuate the fraud, Guzman represented to Company B that the assets were owned by Guzman’s shell companies, Second Life Equipment LLC and All Seasons Sales and Service, when in fact the majority of the assets were still owned by Company A.
Guzman pleaded guilty to wire fraud, which carries a maximum prison term of 20 years, and money laundering, which carries a statutory maximum of up to 10 years in prison. Guzman has also agreed to pay a forfeiture money judgment in the amount of at least $4,044,475, which is the amount constituting the proceeds of the violations in the charging document, and to forfeit assets purchased with fraud proceeds, as well as monies in multiple bank accounts.
Guzman was released on bond following his guilty plea. A sentencing date has not been set.
Acting U.S. Attorney Stetzer thanked the FBI for their investigation which led to today’s guilty plea.
Assistant U.S. Attorney Maria Vento, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Defendant’s Name: Michael Guzman
Criminal Charges: Wire fraud and money laundering
City and State: Charlotte, N.C.
Crime Date: June 2019 to May 2020
Sentence or Outcome: Guilty plea, pending sentencing
Dollar Amounts: $4,044,475
Related Federal Cases
- Michael Smith, AI-Generated Song Fraud, Manhattan NY, 2023 · North Carolina
- Michael Smith, Billion-Stream Royalty Heist, New York, 2023 · New York
- Michael Smith, AI-Fueled Streaming Scam, New York NY, 2023 · New York
- Michael Lawrence O’Donnell, Prescription Drug Distribution, Salt La… · Washington
- Michael Jack Callaway, Possesses Unregistered Short Barrel Shotgun,… · Texas
Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News