Ronald Simpson, 54, of St. Peters, Missouri, has admitted to defrauding his former employer and an IT equipment supplier in a $2.1 million fraud scheme. Simpson, the former IT director of a St. Louis-area university, pleaded guilty in U.S. District Court in St. Louis to one felony count of wire fraud.
As director of information technology for the university, Simpson was responsible for repairing and replacing defective IT equipment used at his employer’s multiple locations. Beginning about Nov. 29, 2018, Simpson devised a scheme to enrich himself at the expense of the University and their equipment supplier.
After receiving approval to purchase hundreds of items of IT equipment by falsely claiming the equipment would be used or installed at university locations, Simpson sold that equipment to a third-party. Simpson misappropriated at least a million dollars from the university with this part of the scheme.
He also fraudulently obtained 56 items from the university’s IT supplier by falsely claiming that the equipment they originally had supplied was defective. Simpson then sold both the original equipment and the replacement gear. The supplier sent a total of $780,233 worth of replacement IT equipment to the university based on Simpson’s misrepresentations.
Simpson was paid a total of $2,188,704 for IT equipment belonging to the university and its supplier. The wire fraud charge is punishable by up to 20 years in prison, a $250,000 fine, or both prison and a fine. Simpson is scheduled to be sentenced September 17.
The FBI investigated the case, with assistance from Simpson’s former employer and the IT supplier. Assistant U.S. Attorney Derek Wiseman is prosecuting the case. The guilty plea is a significant development in the investigation, which highlights the importance of cooperation between law enforcement and the private sector in combating white-collar crime.
The case against Simpson serves as a reminder of the need for vigilance and accountability in all sectors, particularly in institutions of higher education. As the sentencing approaches, it remains to be seen what penalties Simpson will face for his role in the $2.1 million fraud scheme. One thing is certain, however: Simpson’s actions have caused significant financial harm to his former employer and the IT supplier, and his guilty plea is a step towards justice and accountability.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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