Three Men Charged In $1.2M Corporate Embezzlement Scheme
PHILADELPHIA – An indictment was filed today charging Daryl Stevens, 45, of Bethlehem, PA, with four counts of mail fraud, and an information was filed charging Justin Jordan, 34, of East Brunswick, NJ, and Christopher Cook, 40, of Ocean Township, NJ, with multiple counts of mail fraud, in connection with a million-dollar fraud scheme, announced United States Attorney Zane David Memeger.
Jordan and Stevens were employees of “Company A,” which was located in Radnor, Pennsylvania, and provided storeroom management services for industrial, commercial, and educational facilities throughout the United States. Cook was employed by “Company B,” which was international pharmaceutical company based in New York City, New York, with offices in New Brunswick, New Jersey. Company B hired Company A to provide inventory management and purchasing services for Company B’s New Brunswick, New Jersey offices. Jordan and Stevens were working on-site at Company B in their employment with Company A. It is alleged that they, along with Cook, created, registered, and incorporated a total of seven sham vendor companies, obtained mailing addresses for their respective sham vendor companies, and set up and controlled bank accounts for their respective sham vendor companies. Jordan allegedly controlled four of the sham vendor companies; Stevens allegedly controlled two of the sham vendor companies; and Cook allegedly controlled one of the sham vendor companies.
According to the charging documents, between July 2008 and December 2014, Jordan, Stevens, and Cook caused Company A to purchase bogus and non-existent products on behalf of Company B from the seven sham vendor companies that they controlled. Invoices were submitted by the sham vendor companies to Company A, which caused Company A to pay the sham vendor companies by mailing checks or wiring funds into the bank accounts controlled by the defendants. Additionally, the defendants allegedly caused Company A to “sell” approximately $1.2 million of bogus product purchased from the defendants’ sham vendor companies to Company B.
If convicted, each defendant faces a maximum statutory sentence of 20 years in prison per charged count, a special assessment, up to three years of supervised release, and a potential fine.
This case was investigated by the FBI. It is being prosecuted by Assistant United States Attorney James Petkun.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.