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FOR IMMEDIATE RELEASE |
Sept. 9 , 2009
CFO PLEADS GUILTY IN BLAST FAX FRAUD CASE
WICHITA, KAN. – Brian P. Renneisen, 34, Media, Pa., has pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering, U.S. Attorney Lanny Welch said today.
In his plea, Renneisen admitted he took part in a fraudulent scheme in which a company called PBS Global, Inc., collected more than $6.5 million from customers who wanted help selling their small businesses. Renneisen served as chief financial officer of the company, which was formed in 2003 by Renneisen and co-defendants Richard Hagan and John Persaud.
Seeking to reach potential customers through mass faxed solicitations, the company falsely claimed it had a long record of success finding buyers for small businesses. Advertising for PBS stated the company would be paid only upon the successful completion of a sale. In fact, during Rennesein’s employment, no businesses were sold until June of 2004 and very few were sold after that date. In fact, PBS obtained the bulk of its income from what it deemed to be independent third party business valuations. Between July of 2003 and June of 2004 PBS collected more than $6.5 million from customers who paid to have their businesses evaluated prior to sale by a third party. During that time, PBS paid less than $171,000 to the companies that prepared the third-party evaluations. Although the company claimed its analysts were on salary, in fact they received a 40 percent commission on the amount their clients paid to have their businesses evaluated.
When prospective customers wanted references, the conspirators took turns posing as satisfied customers who had sold their businesses with the help of PBS. Renneisen used the name Brian Meadows when serving as a false reference for other defendants. Persaud used the name John Kashmier when serving as a false reference for Renneisen.
Renneisen is set for sentencing November 16, 2009.
Other defendants include:
Richard A. Hagan, who is set for a plea hearing Sept. 11, 2009.
Shaun A. Smoker, who is set for sentencing Nov. 4, 2009.
Prosecutors have moved to dismiss charges against, Cheri L. Persaud.
Welch commended the U.S. Secret Service, Internal Revenue Service - Criminal Investigation, the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
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