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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of New York

Friday, January 18, 2013

Freedom Man Sentenced for Defrauding His Employer

BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that
Nicholas Polcz, 35, of Freedom, N.Y., who was convicted of mail fraud, was sentenced to
one year in prison and ordered to pay $28,419.44 in restitution by Chief U.S. District
Court Judge William M. Skretny.

Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that in
2010, Polcz was employed as the director of operations for Ziphany Company. The
defendant's responsibilities included overseeing the internal computer operations and
wireless service provider. Sometime in April 2010, Polcz created his own company,
EXUO Communications, a shell company with no employees. After creating EXUO, the
defendant advised management at Ziphany that he changed Ziphany's wireless
communications provider to EXUO Communications. At no time did Polcz advise anyone
from Ziphany that EXUO was his company.

Since EXUO communications was a shell company with no ability to provide
wireless service, the defendant continued to have the original service provider provide
wireless communications for Ziphany. In order to hide his scheme, Polcz advised
representatives from the wireless provider to send all invoices to his company as EXUO
was now taking over the billing and communications for Ziphany. After receiving the
invoices, the defendant would then create a false, fraudulent and inflated EXUO invoice
and send it along to Ziphany. After receiving payment on the inflated invoice from
Ziphany, Polcz would pay the wireless service provider and keep the remainder for
himself. As a result of the scheme, Ziphany was defrauded out of over $28,000.

The sentencing is the culmination of an investigation on the part of Special Agents
of the Federal Bureau of Investigations, under the direction of Special Agent in Charge
Christopher M. Piehota.

Updated November 18, 2014