Nicholas Scarantino, Mail Fraud, New York 2021

A North Carolina man has pleaded guilty to his role in a scheme that defrauded hundreds of companies out of millions of dollars, according to the U.S. Attorney’s Office in the Western District of New York.

Nicholas Scarantino, 30, of North Carolina, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to conspiracy to commit mail fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine.

According to Assistant U.S. Attorney Richard A. Resnick, who is handling the case, Scarantino owned Direct Chemicals in the State of California. Between July and November 2021, he and others mailed thousands of fictitious invoices in the name of Direct Chemicals to victim companies located all over the United States.

Approximately 873 victim companies were tricked and defrauded into paying these fictitious invoices, totaling of approximately $861,268.66. Several companies in the Western District of New York were victimized, including those located in Henrietta, Lakewood, Brockport, Andover, Rochester, Avon, Tonawanda, and Niagara Falls.

The scheme was uncovered through an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the U.S. Postal Inspection Service, under the direction of Inspector in Charge Ketty Larco-Ward, Boston Division, and the Internal Revenue Service-Criminal Investigations, under the direction of Special Agent-in-Charge Thomas M. Fattorusso.

Sentencing is scheduled for March 17, 2025, before Judge Wolford.

The case is a stark reminder of the importance of vigilance in business dealings and the need for companies to verify the authenticity of invoices before making payments.

The U.S. Attorney’s Office urges anyone who may have been a victim of this scheme to come forward and report any suspicious activity.

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