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Patriot Computers Owner Pleads Guilty to Wire Fraud
LOUISVILLE, Ky. – Mark Allen Hartley, 55, the owner of Patriot Computers, a Virginia corporation, has pleaded guilty to multiple wire fraud charges related to the theft of $809,205.43 from 434 victims.
According to the indictment and facts admitted during Hartley’s guilty plea, the scheme to defraud First Citizens Bank and its customers was devised between December 1, 2012, and April 14, 2014. During this time, Hartley operated a business called Spartan Group Inc., dba Patriot Computers.
Patriot Computers sold computer equipment to customers on installment sales contracts. Customers agreed to have specified amounts of money taken from their paychecks on a regular basis until their purchases were paid in full. They completed payment authorization forms for these payment arrangements, which were then submitted to First Citizens Bank in Hardin County, Kentucky.
First Citizens Bank would transfer the payments from each customer’s paycheck to Patriot Computers’ account at Wells Fargo Bank until the customer’s contract was paid in full. However, Hartley created fraudulent payment authorization forms and transmitted them to First Citizens Bank by email, causing the bank to transfer unauthorized payments to an account at Wells Fargo Bank controlled by Hartley.
The unauthorized payments totaled approximately $809,205.43. In entering his pleas of guilty, Hartley agreed that the United States could put Patriot Computers’ accounts receivable into receivership, with collections from those accounts being directed to pay restitution to victims.
Hartley faces a sentence of up to 80 years in prison and fines of up to $1,000,000, along with up to 3 years of supervised release. This case is being prosecuted by Assistant United States Attorneys Jason Snyder and Jessica R.C. Malloy and is being investigated by the Federal Bureau of Investigation (FBI).
Hartley, a Florida resident, operated a business that sold computer equipment on installment sales contracts. Customers agreed to have money taken from their paychecks on a regular basis until their purchases were paid in full. Hartley’s scheme to defraud First Citizens Bank and its customers has resulted in a significant financial loss for the victims.
Key Facts
- State: Kentucky
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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