PHILADELPHIA – A Dallas man was sentenced to 36 months in prison for his involvement in a multi-million dollar fraud scheme that targeted a Venezuelan fishing company, the Grimy Times has learned.
Paul Bauer, 55, pleaded guilty on March 8, 2012, to conspiracy to commit wire fraud and wire fraud, according to court documents. Bauer and his co-conspirators stole approximately $4 million from the Pinto-Spinelli Group, a Venezuelan fishing company, by transferring the funds to a bank account in Reading, Pennsylvania, controlled by one of Bauer’s associates.
The scheme was executed through international wire transfers, allowing Bauer and his co-conspirators to quickly move the funds from Venezuela, through Panama and New York, to the bank account in Reading, Pennsylvania. When Citizens Bank became suspicious, Bauer directed his associates to fabricate a letter to mislead the bank into releasing the funds.
Within hours of duping Citizens Bank into releasing the funds, Bauer was able to divert hundreds of thousands of dollars of the stolen PSG funds to Texas, Florida, Puerto Rico, Germany, and Spain. Bauer also attempted to cover up his crime and mislead investigators with Homeland Security Investigations by providing false exculpatory statements and instructing his co-conspirators to do the same.
Fortunately, the investigating agents were not deterred by Bauer’s attempts to mislead them and were able to return more than $3 million of the stolen funds to the victim. Bauer’s co-conspirators pleaded guilty and were each sentenced to five years of probation and restitution of $936,081 last year.
Bauer was sentenced by U.S. District Court Judge Petrese Tucker, who ordered him to pay restitution in the amount of $936,081 and to serve three years of supervised release. The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Frank Labor.
The multi-million dollar fraud scheme had devastating consequences for the unsuspecting victim, the Pinto-Spinelli Group.
Paul Bauer, 55, Defendant
Criminal Charges: Conspiracy to commit wire fraud and wire fraud, Pleaded Guilty on March 8, 2012
City and State: Dallas, TX, Philadephia, PA
Exact Date: March 8, 2012 (Plea), March 2012 (Sentence)
Sentence: 36 months in prison, 3 years supervised release, $936,081 restitution
Dollar Amounts: $4 million stolen from Pinto-Spinelli Group, $936,081 restitution, $3 million recovered
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Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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