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FORMER CONTROLLER PLEADS GUILTY TO BANK FRAUD

MONDAY, NOVEMBER 22, 2010

BOSTON, Mass. - An Acushnet man was convicted today in federal court of participating in an elaborate scheme to defraud the lenders of the former Gitto/Global Corporation.

WILLIAM F. DEAKIN, 62, pleaded guilty before U.S. District Judge F. Dennis Saylor to conspiracy and wire fraud. At today’s plea hearing, the prosecutor told the Court that had the case proceeded to trial the evidence would have proven that from1998 through September 2004 the principals of Gitto/Global Corporation, a plastics manufacturer in Lunenburg, were engaged in a complex scheme to defraud the company’s secured lenders by systematically overstating the company’s sales and inventory, thereby inducing the lenders to advance millions of dollars that would not have been advanced had the company accurately reported its assets. In order to support the false claims, numerous Gitto/Global employees spent hours of every business day generating supporting false documentation including invoices, bills of lading, and packing slips.

Judge Saylor scheduled sentencing for February 15, 2011. DEAKIN faces up to 20 years imprisonment, to be followed by five years of supervised release and a $250,000 fine. Co-conspirators FRANK MILLER, GARY GITTO and LOUIS PELLEGRINE previously pleaded guilty and will be sentenced in January and February, 2011.

United States Attorney Carmen M. Ortiz, Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division and William Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. It is being prosecuted by Assistant U.S. Attorney Lori J. Holik and Auditor Thomas J. Zappala of Ortiz’s Economic Crimes Unit.

 

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