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Pennsylvania man arrested on federal fraud charges

A Bethlehem man has been placed under arrest after a lengthy company investigation into an alleged corporate fraud scheme. The matter stems from allegations that several men acted to defraud the companies for which they worked. Specifically, three individuals are accused of facilitating fraudulent transactions between a pharmaceutical company and a Radnor company specializing in inventory management. Now, each man will have to decide how to proceed in regard to charges of mail fraud.

Court documents do not name the companies involved in the case. However, sources believe that the pharmaceutical company is Bristol-Myers Squibb, and that the Pennsylvania-based inventory-control company is known as Storeroom Solutions, Inc. The pharmaceutical company hired Storeroom Solutions to provide services focused on inventory management and purchasing.

The men are accused of setting up as many as seven sham vendor companies, and then using their positions to purchase products that did not exist. The pharmaceutical company allegedly paid more than $1.2 million for those products. Those transactions are said to have taken place between 2008 and 2014. A representative for Storeroom Solutions released a statement saying that they became aware of inconsistencies, which led them to conduct an internal investigation. That led to a call to authorities. 

The Pennsylvania man was charged with four counts of mail fraud. The other two men were each charged with nine counts of the same. None of the three are in custody as of the time of this report, and two of them were charged via a process known as criminal information, which sources indicate suggests a plan to enter a plea of guilty.   

Source: articles.philly.com, "3 charged in corporate embezzlement scheme", Julie Shaw, March 26, 2016

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