Former Fultonville, New York Resident Pleads Guilty To Fraud Scheme
For Immediate Release
U.S. Attorney's Office, Northern District of New York
Scrap Metal Brokers Defrauded
SYRACUSE, NEW YORK - David L. Frisby, 65, of Kiln, Mississippi, pled guilty yesterday to one count of conspiracy to commit wire fraud in connection with a scheme to defraud scrap metal brokerage firms. The guilty plea included his admission to soliciting contracts for the disposal of batteries and other metal waste under false pretenses, announced United States Attorney Richard S. Hartunian and Environmental Protection Agency (EPA) Criminal Investigations Division Special Agent in Charge Vernesa Jones-Allen.
Frisby, formerly of Fultonville, New York, admitted that he and his co-conspirators falsely held themselves out to be representatives of a scrap metal recycling firm that was authorized by the Environmental Protection Agency to dispose of metal waste by shipping it to Korea, and that they defrauded business and individuals by charging them for recycling services that were never provided. In reality, Frisby and his co-conspirators were not authorized by the EPA to provide scrap metal recycling services and never intended to provide such services to the victims.
To further the scheme, Frisby, who formerly served as the Chief Executive Officer of D & L Heritage Enterprises, Inc. (D & L Heritage), a New York State domestic business corporation, until its dissolution in 2009, provided his co-conspirators with D & L Heritage incorporation documents that were fraudulently altered and e-mailed to victims during the solicitation process. Victims of the fraud scheme transferred at least $154,206.00 in fraud proceeds to bank accounts maintained by Frisby, who retained a portion of the funds for his personal benefit and transferred the remainder to his co-conspirators.
At sentencing on April 27, 2016 at 10:00 a.m. in Syracuse, Frisby faces a maximum term of incarceration of 20 years and a maximum fine of $250,000. Additionally, the plea agreement requires Frisby to pay $144,216.00 in restitution to victims of the fraud scheme, if approved by the Judge.
The case was investigated by the U.S. Environmental Protection Agency, Criminal Investigations Division. The case is being prosecuted by Assistant United States Attorney Sean O’Dowd.
Updated February 4, 2016