A federal grand jury in Rochester has returned a 12-count indictment charging Kenneth M. Griffin, 45, and Brian K. Campbell, 73, both of Rochester, with defrauding companies and money laundering.
The charges carry a maximum penalty of 20 years in prison, a fine of $500,000 or both.
It is alleged that Kenneth Griffin controlled a local employment staffing business that he put in the names of various nominee owners. Together with Brian Campbell, the defendants are accused of creating more than $600,000 worth of fake accounts receivable that they supported with false invoices and forged employee time-sheets.
The defendants, according to Assistant U.S. Attorney John J. Field, then sold the fake accounts receivable to several companies involved in the financing and collecting of accounts receivable, a particular type of business transaction known as “factoring.”
The factoring companies paid for the false accounts receivables by wiring money to Comdata Corp., a company that provides private debit-card services. Once the money was in the Comdata account, Campbell allegedly loaded the money onto various debit cards that could be used at ATMs to withdraw cash. The loaded debit cards were given to low-level employees, with instructions to withdraw money from the cards until they were empty, and to return the cash to Griffin.