Middletown Man Charged With $6.5MM Wire Fraud Scheme, Money Laundering, False Statement and Tax Evasion Offenses
WILMINGTON, Del. – David C. Weiss, Acting United States Attorney for the District of Delaware, announced that an Indictment was been handed down by a federal grand jury yesterday charging Michael Boyce, currently of Ocean City, New Jersey and formerly of Middletown, Delaware, with wire fraud, money laundering, false statement and tax evasion offenses. The defendant faces up to 20 years in prison on the wire fraud and money laundering charges, up to 30 years on the false statement charges, and five years on the tax evasion offenses.
The Indictment alleges that, between 2004 and 2016, Boyce, who was employed in the information technology department of a manufacturing company located in New Castle County, submitted purchase orders for more than $6.5 million of supplies that were never provided to the victim company. Boyce submitted or caused others to submit fake invoices to the company and forged the necessary approvals on the accompanying purchase orders. In order to secure payment of those invoices, Boyce also falsified documents verifying receipt of the phantom supplies. Based on this fraudulent documentation, the victim company paid the two suppliers listed on the invoices. Those suppliers, in turn, gave more than 85% of those payments back to Boyce.
While Boyce declared some of his illegal income on his taxes, for tax years 2012-2015, he omitted at least $1.4 million of that income, resulting in a failure to pay an additional amount of tax totaling more than $579,000. Also according to the Indictment, in connection with two different mortgage applications, Boyce falsely represented that at least some of his illegal income was, in fact, legitimate business income.
Acting U.S. Attorney Weiss gave the following comment, “I want to thank both the IRS and the FBI for their hard work in seeing this case to indictment. These investigative efforts insure that those who abuse their positions to enrich themselves will eventually be brought to justice. We remain committed to prosecuting those who betray not only the private trust of their employer, but also defraud the United States government.”
"Fulfilling individual tax obligations is a legal requirement. Those who willfully evade that responsibility undermine our democracy and therefore will be prosecuted," said Edward Wirth Acting SAC, Philadelphia field office. "IRS Criminal Investigation special agents are doing their job to ensure that honest individuals do not have to pick up the tab of those people not filing tax returns or filing false tax returns."
“Today’s indictment is significant and highlights the FBI’s collaboration with our partner agencies in Delaware as we hold this defendant accountable for illegal financial transactions and embezzlement,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. "The FBI and the IRS will continue to use all available tools to detect corporate fraud and to protect victim companies from those who pose an insider threat to their financial well-being.”
This case is the result of an investigation conducted by the IRS, Criminal Investigation and the FBI. The prosecution is being handled by Assistant United States Attorney Lesley Wolf.
The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.