Five Defendants Sentenced For Their Involvement In A Scheme To Defraud Xerox

CONTACT:      Barbara Burns
PHONE:         (716) 843-5817
FAX:            (716) 551-3051
 
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul Jr. announced today that five defendants convicted in a scheme to defraud the Xerox corporation by submitting fictitious bills for work never performed on equipment, were sentenced by Chief U.S. District Judge Frank P. Geraci. Sentenced were:

• Anthony Fretto, of Webster, NY, who was convicted of conspiracy to commit mail fraud and conspiracy to engage in monetary transactions involving the proceeds of unlawful activity, was sentenced to 12 months in prison and ordered to pay restitution to Xerox totaling $4,061,000.
• Daniel Streff, of Webster, NY, who was convicted of conspiracy to commit mail fraud, was sentenced to five years probation and ordered to pay restitution to Xerox totaling $850,000.
• Thomas Randall, of Marion, NY, who was convicted of conspiracy to commit mail fraud, was sentenced to five years probation and ordered to pay restitution to Xerox totaling $298,000.
• Edward Hawkins, of Marion, NY, who was convicted of conspiracy to commit mail fraud, was sentenced to five years probation and ordered to pay restitution to Xerox totaling $185,000.
• And David Dailey, of Bloomfield, NY, who was convicted of conspiracy to commit mail, was sentenced five years probation and ordered to pay restitution to Xerox totaling $175,000.

Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that between 2002 and 2007, the defendants, along with five other individuals, perpetrated a scheme through Clarkson Auto Electric to defraud the Xerox Corporation. The scheme involved the submission of false invoices for parts and repair services related to the maintenance of the forklift fleet at the Xerox facilities in Webster. The defendants, through Clarkson Auto Electric, issued approximately $4,100.000 in false invoices to Xerox which was charged for new forklift parts and repair services that were ordered by the defendants but never provided to Xerox.

Five other defendants, John Jarnot, Mathew Lavilla, Gerald Fretto, James Noto, and Randy Vansteen have all been convicted.

The sentencings are the culmination of a joint investigation on the part of the Internal Revenue Service, under the direction of Shantelle P. Kitchen, Special Agent in Charge, New York Field Office, and the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, United States Postal Inspection Service.