PHILADELPHIA – A massive fraud scheme orchestrated by Dean Volkes and Donna Fallon has led to convictions for mail fraud, wire fraud, theft of government property, money laundering, obstruction of justice, and false statements. The pair, along with their company, Guaranteed Returns, have been ensnared in a $180 million swindle that defrauded countless clients.
Volkes, 53, served as the CEO and sole owner of Guaranteed Returns, a reverse pharmaceutical distributor. Fallon, his sister, was CFO. Their scheme involved stealing ‘indate’ drug products from clients, returning them for refunds, and keeping the proceeds. The duo systematically pilfered over $180 million from more than 13,000 clients, including over $20 million from U.S. Department of Defense facilities.
Acting United States Attorney Louis Lappen announced the convictions, noting that Volkes and Guaranteed Returns are expected to pay back nearly $180 million in restitution. Volkes was additionally ordered to forfeit $127 million in bank accounts. Both face substantial sentences and a supervised release period following their prison terms.
The evidence at trial detailed a sophisticated fraud involving internal accounting adjustments that skimmed refunds from clients’ accounts. The program, implemented by IT staff under Volkes’ direction, resulted in the theft of approximately $500,000 in five months. Fallon played her part by executing the program over a dozen times.
Guaranteed Returns was also found guilty of conspiracy to launder the proceeds by mixing stolen drugs with those not stolen, ensuring that refunds for the latter would be mingled with stolen funds. The defendants then transferred millions through company accounts to Volkes’ control.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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