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FORMER CHIEF OPERATING OFFICER SENTENCED FOR $20 MILLION FRAUD

March 23, 2010

BOSTON, MA - A Peabody man was sentenced today for a mail fraud and money laundering scheme that netted him $20 million which he used to purchase private jets and support an extravagant lifestyle for his family and mistresses.

United States Attorney Carmen M. Ortiz; Robert Bethel, Inspector in Charge of the U.S. Postal Inspection Service; Susan Dukes, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation - Boston Field Office; and Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Office, announced today that JOHN F. DOORLY, age 60, of Peabody, was sentenced to 17 1/2 years in prison and ordered to pay a $1 million dollar fine after pleading guilty in November 2009 on his first day of trial, on mail fraud and money laundering charges, in connection with his scheme to defraud a North Shore company of more than $20 million dollars while he was employed as its Chief Operating Officer.

During the period of 1999 through March 2006, DOORLY removed millions of dollars from the bank accounts of Tenens Corporation, and used the money for his own purposes including: the acquisition, use and maintenance of three airplanes (total cost of more than $12 million dollars); the purchase of mortgage free houses and condominiums for family members, friends, and mistresses; the purchase of golf memberships at exclusive clubs across the United States for himself and his son; transfers of hundreds of thousands of dollars to his wife and his mistresses; and the payment of hundreds of thousands of dollars of personal credit card bills. DOORLY also overcharged for accounting fees, thereby generating a slush fund for himself totaling millions of dollars. In addition, DOORLY also withdrew large sums of cash and manipulated the company’s internal accounting system, which he controlled, in order to conceal his activity.

The case was investigated by the U.S. Postal Inspection Service, the Internal Revenue Service and the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Lori J. Holik, with assistance from Auditor Andrea Roller of Ortiz’s Economic Crimes Unit.

 

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