Rochester Man Sentenced for $650,000 Fraud Scheme
A Rochester man was sentenced to 46 months in prison for his role in a complex fraud scheme that spanned nearly a year and involved selling fake invoices to financing companies for immediate cash.
Kenneth Griffin, 46, was convicted of conspiracy to commit mail and wire fraud and conspiracy to engage in money laundering, according to U.S. Attorney William J. Hochul, Jr.
The scheme, which began in August 2007 and ended in June 2008, involved Griffin creating and selling false invoices to factoring companies, including LHT USA and Cambridge Personnel, which he owned and operated under various names.
Griffin and his accomplices sold and attempted to sell more than $650,000 worth of bogus invoices to three separate factoring companies over the course of nearly a year.
After the financing companies realized they had been sold uncollectible invoices, Griffin would change business names and continue the scheme with another factoring company.
Griffin used the proceeds of the crime to fund a lavish lifestyle, including purchasing a Bentley and supporting a drug habit.
The investigation into Griffin’s scheme was led by Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Toni M. Weirauch, and Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Brian P. Boetig.
Griffin’s sentence was handed down by U.S. District Judge Frank P. Geraci, who also noted the seriousness of the crime and the impact it had on the victims.
Griffin’s sentencing is the culmination of a lengthy investigation and brings an end to a complex and far-reaching scheme that targeted unsuspecting lenders.
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Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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