⏱ 2 min read
Chad Miller Costello, a 36-year-old Billings man, ran a scrap metal business scheme that stole money from customers across the United States. From 2018 to 2023, Costello promised to buy scrap metal at premium prices, but only paid a portion or nothing of the contract price. He would then sell the scrap metal to recyclers and keep the money, owing over $1 million to his customers.
Costello’s scheme involved launching new businesses with different names, including M&M Recycling, Industrial Surplus Buying, A-1 Surplus, and ABC Iron & Metal. He would promise to pay customers later, but instead, he would offer excuses, delay responses, and eventually stop communicating altogether.
In one instance, Costello paid $150,000 in an initial installment for scrap metal from a company in Coolidge, Arizona, but sold the material to a recycler for over $1 million and did not pay the balance he owed to the seller. He also falsified his tax returns, claiming a significantly smaller income than what he was making from his sales of scrap metal.
Costello pleaded guilty to one count of wire fraud, one count of money laundering, and one count of filing a false tax return. He was sentenced to four years in prison, followed by three years of supervised release, a $50,000 fine, and $300 in assessment fees.
The case was prosecuted by Assistant U.S. Attorney Colin Rubich, and the investigation was conducted by the IRS Criminal Investigation.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Montana
- Location: MT
- Source: DOJ Press Release
