A Florida man could spend up to 30 years in prison after pleading guilty to taking part in a million-dollar, years-long shipping and kickback scheme involving his former employer Macy’s.
The 46-year-old man pleaded guilty on Friday to charges including money laundering and mail fraud, Cincinnati.com reports.
The man’s admission revolves around a 2014 Ohio Department of Justice’s indictment that said the man and a co-conspirator operated a $3.5 million shipping and packages contract fraud scheme since at least 2010.
According to the indictment, the Florida man worked for Macy’s between 1988 and January 2011. Starting in 2000 the man managed a Macy’s distribution center in Carson, CA, supervising the movement of the company’s merchandise to distribution centers throughout the country.
Beginning in July 2010, the man began diverting shipments to shipping companies that his co-conspirator had established and both men had a significant financial interest in.
The former Macy’s employee allegedly obtained approval for the companies to become third party vendors without disclosing his financial interest in or personal connection to the organizations.
As such, the man reassigned other transportation contracts from established vendors to their own companies, establishing a different process for the vendors so invoices could be personally approved.
According to the DOJ, between July and December 2010, the companies received more than $3.5 million in Macy’s shipping and packaging jobs.
After paying expenses, the men generated more than $900,000 in net profits from the diverted business.
Former Macy’s employee pleads guilty in shipping scheme [Cincinnati.com]
by Ashlee Kieler via Consumerist
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