A Texas man has been found guilty of perpetrating a scheme that defrauded a labor service provider of $300,000. The crime took place in Memphis, Tennessee, where Impact Logistics, the victim company, was headquartered.
According to information presented in open court, Robert Ross was employed by Impact Logistics for two decades. Ross was responsible for managing Impact’s operations in Atlanta, Georgia and Dallas, Texas, and was in charge of handling billing and payroll.
However, between February 2013 and June 2015, Ross defrauded Impact of $300,000 by making fraudulent representations regarding the employment status of former employees. He also made fraudulent entries in payroll records.
Ross’s scheme involved intentionally failing to notify Impact when an employee resigned from the company, thus keeping the former employee on the payroll. He would then request new prepaid debit cards, known as Transcards, to be issued to the former employees. After receiving the Transcards, Ross would submit falsified time records in the name of the former employees to reflect that they had worked and were entitled to payment.
When Impact loaded money on the Transcards to pay the former employees, Ross used the funds for his personal benefit. As a result, he defrauded Impact of approximately $300,000.
Ross faces up to 20 years imprisonment for wire fraud and a fine of up to $250,000. He is scheduled to be sentenced by Judge John T. Fowlkes Jr. on Thursday, December 17th.
The case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll Andre is prosecuting the case on the government’s behalf.
Related Federal Cases
Key Facts
- State: Tennessee
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime