Pittsburgh Linen Swindler Gets 24 Months

PITTSBURGH, PA – Ronald B. Halpern, 67, of Pittsburgh, is headed to federal prison after being sentenced Friday for a brazen scheme that ripped off manufacturers, shippers, and customers to the tune of over $700,000. U.S. District Judge Arthur J. Schwab handed down a 24-month sentence, followed by three years of supervised release, after Halpern was convicted of mail fraud.

The feds say Halpern operated a sham business, A & R Services, Inc., right out of his apartment. From April to September 2007, Halpern and his crew weren’t selling linens, sports gear, and novelty items – they were running a con. They secured credit from manufacturers and wholesalers using bogus financial information, intending to never pay for the goods or the shipping.

According to court documents, Halpern wasn’t interested in legitimate business. A & R Services was a front for a systematic fraud, built on lies and empty promises. He racked up over $700,000 in debt, leaving a trail of unpaid invoices and angry creditors in his wake. The scheme involved manipulating interstate shipping companies as well, adding another layer of deceit.

U.S. Attorney David J. Hickton’s office didn’t just secure a conviction; they’re demanding repayment. Judge Schwab ordered Halpern to pay restitution totaling $709,655.21 to the 13 victims he swindled. It remains to be seen how much of that money will actually be recovered, but the court is sending a clear message: crime doesn’t pay.

Assistant U.S. Attorney Carolyn J. Bloch led the prosecution, building a solid case against Halpern. The investigation, lauded by Hickton, was a joint effort by the Federal Bureau of Investigation and the Office of the United States Trustee. They dug through the financial wreckage left by A & R Services, exposing the full extent of the fraud.

Halpern’s case is a stark reminder that even seemingly small-time schemes can have devastating consequences. While the linens and novelty items might seem insignificant, the financial damage inflicted on the victims is very real. The Grimy Times will continue to follow this case and report on the efforts to recover the stolen funds.