Three additional defendants named in fraudulent billing scheme

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A federal grand jury has indicted three people for their alleged role in a scheme to defraud thousands of companies out of millions of dollars.

The superseding indictment charges John Engler, Alec Dierna, and Nicholas Scarantino with conspiracy to commit mail fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine.

Also named in the superseding indictment are three defendants previously charged in the case: Tommy Lee Coburn, Kyle Paul Edward Gibson, and Heather Dierna.

According to the U.S. Attorney‘s office, in January 2019, Engler began mailing fictitious invoices to companies located throughout the United States for cleaner/degreaser products that the victim companies would believe they had previously ordered and received.

In August 2020, Engler recruited Dierna to participate in the scheme. Coburn and Dierna joined the conspiracy in January 2021, Gibson in February 2021, and in July 2021, Scarantino joined the conspiracy, prosecutors claim.

Large companies were targeted because it was less likely during the COVID-19 pandemic that accounts payable departments in the companies would question whether cleaner/degreaser products listed on the fraudulent invoices were ordered and received, prosecutors claim.

Large companies were targeted because the relatively small amounts owed on the fraudulent invoices would be less likely to raise questions regarding the legitimacy of the invoices, and because the accounts payable departments do not order products for their companies, and would be less likely to question or be suspicious of the grossly inflated prices, according to prosecutors.

About 5,458 victim companies were tricked into believing that they had received a legitimate invoice for products, paying about $8 million to the sham companies.

After receiving payment, the defendants attempted to cover up their fraud by having inexpensive cleaner/degreaser products delivered to the victim companies.