U.S. Attorney Announces New Jersey Man Indicted For Take-Over Of Government Accounts With Fedex
Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, announced today that Anthony Caruso, age 48, of New Jersey was indicted yesterday by a federal grand jury sitting in the Western District of Tennessee, on charges of wire fraud, conspiracy to commit wire fraud and access device fraud.
According to the 26-count indictment, Anthony Caruso was a former employee of Federal Express Corporation (FedEx) and the president and CEO of CSA Group. CSA is a New Jersey based distribution management company that negotiates shipping discounts on behalf of its customers. FedEx, the global courier and delivery service, is headquartered in Memphis, Tennessee.
The indictment states that it is the practice of FedEx to establish for its large customers what is known as a “national account.” Each national account could have sub-accounts, each with their own number so long as those sub-accounts were linked to the business holding the national account. It is also the practice of FedEx to negotiate shipping discounts for some customers who meet certain criteria. If a national account received a discount, all sub-accounts linked to the national account receive the same discount.
The United States Department of Defense (DOD) had a FedEx national account and distinct agencies of the DOD had sub-accounts linked to the national account.
The indictment alleges that beginning in November 2009 and continuing until February 5, 2011, Caruso obtained the DOD’s national FedEx account number and its sub-account numbers. Caruso then took over dormant DOD accounts at FedEx in order to access DOD’s substantial discount on shipping rates and shipped CSA customers’ goods via FedEx through the DOD account at the DOD discount rate. Caruso would allegedly charge CSA customers rates that were lower than the customers could obtain on their own, but higher than the actual cost of shipping at the DOD rate and keep the difference.
The indictment also alleges that Caruso contacted FedEx customer service agents and changed the name and billing addresses on the DOD sub-accounts so that invoices were directed to CSA Group or one of its associates.
Caruso has been charged with one count of conspiracy to commit wire fraud; 22 counts of wire fraud; and three counts of access device fraud. If convicted he faces up to 50 years in prison and a fine of up to $750,000.
This investigation was conducted by the United States Secret Service. This case is being prosecuted for the government by Assistant United States Attorney Debra Ireland.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.