Massachusetts Man Sentenced In Xerox Fraud Case
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ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jonathan Ofstein, of Boston, Massachusetts, who was convicted of wire fraud, was sentenced to five years probation and ordered to pay $6,031,141 in restitution to the Xerox Corporation by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that Ofstein worked for Vestcom Corporation in Massachusetts and his duties included ordering printing supplies from the Xerox Corporation for his company. Xerox provides branded printing toner to customers who have entered into lease contracts for office equipment. As part of a lease, the customer is invoiced a flat rate per month for office equipment, including printers, copiers, scanners, multifunction devices, and graphic arts production equipment. In order to operate each piece of equipment, supplies are required, including toner. The supplies can be expensive to buy individually, so Xerox offers an “all-inclusive” contract. Xerox provides the supplies and the customer pays the company based on the number of prints made with the supplies. The supplies must be consumed by the customer and at all times remain the property of Xerox until consumed in the leased equipment.
Between 2012 and 2016, Ofstein ordered excess supplies from Xerox without the knowledge of the company knowledge and which Vestcom did not need. The defendant then sold the excess supplies to an individual located in Miami, Florida. The retail value of the excess supplies sold by Ofstein was approximately $6,031,141.
The sentencing was the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.