Factoring Business Owner Charged With Lying To FBI Agents, Selling Fraudulent Accounts Receivable To Another Company
NEWARK, N.J. - An owner of a Bergen County, New Jersey, factoring company was arrested this morning on charges that he allegedly lied to FBI special agents about his efforts to sell fraudulent accounts receivable to another factoring company, U.S. Attorney Paul Fishman announced.
William Kirchgessner, 45, of Bloomingdale, New Jersey, was charged by complaint with one count of wire fraud and one count of making a false statement in an FBI investigation. He is scheduled to appear this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to the complaint:
Kirchgessner is an owner of a factoring business that purchases accounts receivable from transportation companies in return for short-term financing. In February 2016, Kirchgessner suspected that his company was being defrauded by a trucking company located in Georgia and contacted the FBI.
FBI special agents later told Kirchgessner that the trucking company was defrauding his factoring business and asked Kirchgessner to inform them if he was contacted by any other factoring business regarding the trucking company or if the trucking company wanted to move its accounts receivable to another business.
Instead, Kirchgessner took steps to sell the fraudulent accounts receivable to a second factoring company. Kirchgessner called a broker for the second factoring company in furtherance of the resale, made false statements to the broker promoting the trucking company, and signed the buyout agreement with the second factoring company.
Kirchgessner caused the second factoring company to send a wire transfer of more than $1.6 million as part of the buyout. During a phone conversation with FBI special agents on Feb. 23, 2016, Kirchgessner denied any knowledge of the second factoring company and concealed his personal involvement in the buyout.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison. The charge of making a false statement carries a maximum potential penalty of five years in prison. Both charges carry a potential $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.