Longtime Harford County manufacturing manager pleads guilty to $20 million kickback scheme – Baltimore Sun

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In 2012, Elliott Dennis Kleinman used his executive position to run a fraudulent billing scheme, according to the U.S. Attorney’s Office in Maryland. He pleaded guilty in US District Court in Baltimore on Wednesday to conspiracy to commit wire fraud and tax evasion, in a kickback scheme that defrauded his employer of more than 20 millions of dollars.

Kleinman, 68, of Bel Air, was a longtime employee of a family-owned global company headquartered in New York City with manufacturing facilities in Belcamp and Abingdon.

According to the U.S. Attorney’s Office in Maryland, Kleinman and another employee used their senior positions to carry out their scheme. They received illegal kickbacks from various keg sellers doing business with the company, which used the kegs to store and transport its products.

As facility managers, Kleinman and the other employee oversaw the purchase and storage of drums for use at the Harford County manufacturing facilities. They also had the power to review cask invoices and authorize payments to cask sellers.

According to the Maryland U.S. Attorney’s Office, after Tunnel, Barrel and Drum Co., Inc. became a drum supplier for the company, Kleinman and the other employee reached an agreement with TBD owner Anthony P Urcioli Sr., to fraudulently charge Kleinman’s employer for more kegs than TBD sold and delivered to the company. Kleinman and the employee shared their share of the bribes with Urcioli.

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Urcioli falsely billed more than $20 million between January 2012 and January 2020, according to the U.S. Attorney’s Office in Maryland. Kleinman’s share of the bribes was approximately $2,307,121.

Kleinman opened and maintained two commercial bank accounts for a company he started, EDK Management LTD: one in the name of “EDK Management Ltd” and the other in the name of “EDK Management Ltd t/a Main Street Cigars “, a retail business. store he owns in Bel Air. Kleinman deposited checks into EDK’s business account, where the funds were withdrawn in cash and spent on personal expenses or transferred to Main Street Cigars’ bank account, according to the guilty plea.

From 2017 to 2019, TBD paid Kleinman approximately $1 million in bribes. Kleinman’s tax returns filed with the IRS for the period did not report these payments as personal or business income, which caused a loss to the US government of approximately $291,143, according to the plea.

Kleinman faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a maximum of five years in federal prison for tax evasion. U.S. District Judge Lydia Kay Griggsby has not yet scheduled a sentencing.

Urcioli Sr., 78, of Park Ridge, New Jersey, previously pleaded guilty to conspiracy to commit wire fraud and file a false tax return for his role in the scheme and is awaiting sentencing.


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