AKRON, OH – A 16-year scheme to bleed J.M. Smucker Company dry is coming to light with the charging of Mark R. Kershey, 54, of Akron, formerly of Massillon. Kershey, a former chief airplane mechanic for the Orville, Ohio-based food giant, is accused of mail fraud totaling a staggering $4.1 million.
According to a criminal information filed in federal court, Kershey operated a phantom company, Aircraft Parts Services, Co., from approximately October 1997 through January 2013. He allegedly submitted bogus invoices to Smucker for parts that never existed and services he was already paid to perform as part of his regular duties. The scheme hinged on keeping invoice amounts under $10,000 – the limit he was authorized to approve himself – with a few larger bills rubber-stamped by a trusting supervisor.
The operation was deceptively simple. Kershey maintained a post office box in Greentown, Ohio, under the fake company name to receive checks. The funds weren’t going to aircraft maintenance, however. Federal investigators say the stolen money was funneled into a lavish lifestyle – two airplanes, multiple automobiles, and mortgage payments for his personal residence. This wasn’t a slow drip; it was a sustained, calculated drain on the company’s resources.
Even as the scheme began to unravel in late 2012, Kershey doubled down on deception. When three checks totaling $44,000 went uncashed, he fabricated a story about selling Aircraft Parts Services to another Smucker vendor, identified in court documents as SAI. He even forged a letter from SAI’s owner confirming the fictitious sale, convincing Smucker to reissue the checks – which SAI then deposited after a conversation with Kershey.
U.S. Attorney for the Northern District of Ohio, Steven M. Dettelbach, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office, are pursuing forfeiture of Kershey’s assets, including the two airplanes, three automobiles, and a truck, as proceeds of the alleged fraud. If convicted, the sentencing will be determined by the court, taking into account Kershey’s history and the specifics of the crime. The statutory maximum sentence has not been disclosed.
It’s crucial to remember that this is merely an accusation. Kershey is entitled to a fair trial, and the government bears the burden of proving his guilt beyond a reasonable doubt. The investigation was conducted by the Federal Bureau of Investigation, Canton, Ohio, and is being prosecuted by Special Assistant United States Attorney John M. Siegel. Grimy Times will continue to follow this case as it develops.
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Key Facts
- State: Ohio
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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