Former FedEx Employee Pleads Guilty to Defrauding Corporation
Memphis, TN - A former government sales representative at FedEx Corporation has pled guilty to defrauding the company of nearly half-a-million dollars during a two-year scheme.
Between 2009 and 2011, Anthony Caruso, 48, used his New Jersey-based shipping and logistics company, CSA Group, to execute a re-billing fraud. Re-billing fraud occurs when a package shipped under a particular FedEx account number is transferred to a different account that may have more favorable terms and conditions, according to the indictment.
CSA Group had negotiated a discount shipping rate with FedEx — a benefit the corporation typically provided to customers that shipped large volumes of materials. Instead of using the CSA Group account rate to provide shipping services, Caruso would re-bill his customers’ packages. He was able to execute his scheme by illegally moving the packages from his account to accounts that belonged to the U.S. Department of Defense. Like CSA Group, the Department of Defense had a FedEx account. But due to it shipping at a significantly higher volume, the Department of Defense, along with the federal government sub-accounts linked to it, received a larger discount for shipments than CSA Group.
Caruso gave his customers a shipping discount through CSA Group, but then re-billed their packages to dormant Department of Defense sub-accounts to take advantage of the larger discount rates. Caruso also changed the contact information for the government accounts, so that all invoices would be sent to him instead of the Department of Defense.
By doing so, he was able to keep the financial difference between the discount he offered his customers and the government discount he unlawfully accessed. The government estimated the loss to FedEx at between $200,000 and $400,000.
Wednesday afternoon, Caruso pled guilty to one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of access device fraud. He faces a maximum sentence of up to 20 years in prison on each of the wire fraud counts and 10 years on the access device fraud count. Caruso also faces fines of up to $750,000 and a three-year term of supervised release.
Caruso is scheduled to be sentenced Friday, August 28, 2015, at 9:30am before Judge Sheryl H. Lipman.
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Deb Ireland is representing the government in this case.