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ITMG Insider Threat Cases – July 19, 2021

Former Corning Employee Indicted for Stealing Trade Secrets, Economic Espionage

A former lead scientist for Corning Inc. was arraigned today after a federal grand jury in Rochester returned an indictment charging him with economic espionage, theft of trade secrets and violating the International Emergency Economic Powers Act (IEEPA). According to court documents, Ji Wang, 59, worked for Corning Inc. from 1998-2019 and was assigned to work as the lead scientist on a fiber laser research and development project initiated by the Defense Advanced Research Projects Agency (DARPA).

Silver Spring Man Sentenced to 75 Months in Federal Prison for Bank Fraud Conspiracy and Aggravated Identity Theft with Losses of Hundreds of Thousands of Dollars 

U.S. District Judge Theodore D. Chuang today sentenced Emmanuel Kusi Appiah, a/k/a Manny, age 47, of Silver Spring, Maryland, to 75 months in federal prison, followed by five years of supervised release, for conspiracy to commit bank fraud, four counts of bank fraud, and two counts of aggravated identity theft, in connection with a years-long bank fraud scheme that resulted in losses of hundreds of thousands of dollars.  A federal jury convicted Appiah on March 12, 2019, after a five-day trial.

Former CEO and CFO of Public Telecommunications Company Charged in Manhattan Federal Court with Scheme to Defraud Investors 

Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging MICHAEL PALLESCHI, the former Chief Executive Officer of FTE Networks, Inc. (“FTE”), and DAVID LETHEM, the former Chief Financial Officer of FTE, with conspiracy, securities fraud, and wire fraud, improperly influencing the conduct of an audit and aggravated identity theft.  These charges stem from the defendants’ years-long scheme to inflate FTE’s revenue, to conceal liabilities and expenses, and to embezzle company funds.  PALLESCHI was arrested this morning in the Northern District of New York and will be presented today in that district.  LETHEM was arrested this morning in the Middle District of Florida and will be presented today in that district.

Bellevue Man Sentenced to Prison for Defrauding His Employer with Deceptive Insider Sales of Used Medical Equipment 

A former manager of a Snoqualmie, Washington medical device company was sentenced today in U.S. District Court in Seattle to 14 months in prison for his scheme to defraud his employer of nearly $800,000 in used equipment sales, announced Acting U.S. Attorney Tessa M. Gorman.  Arunkumar Singal, 42, pleaded guilty to wire fraud on January 3, 2020.  At the sentencing hearing U.S. District Judge Richard A. Jones told Singal, “You put everything at risk for one thing: to add to your wealth….. You stopped because you were caught by law enforcement, but you continued to lie and deceive.” 

President of Ice Cream Manufacturer Pleads Guilty to $1.8 Million Fraud, Tax Crime 

Timothy L. Miller, 55, of Gahanna, Ohio, pleaded guilty in U.S. District Court to one count of wire fraud and two counts of filing a false income tax return.  Miller was charged by Bill of Information on April 26, 2021. 

According to court documents, from July 2015 through December 2017 Miller was president of Big Drum USA LTD, an ice cream manufacturer located in Columbus, Ohio.  Miller fraudulently withdrew $1,797,127.49 from a Big Drum bank account.  The withdrawals consisted of the purchase of cashier’s checks made payable directly to casinos, debit card transactions involving hotels and casinos, and cash withdrawals in Ohio, Nevada, Utah, Iowa, Pennsylvania, California, and Ontario, Canada.  Miller concealed his actions by logging the transactions as “petty cash” or “loans” in the ledgers of Big Drum.

Brockton Business Owner Sentenced for Tax Fraud and Workers’ Compensation Insurance Fraud 

The owner of a Brockton construction company and related businesses was sentenced yesterday on charges that he paid employees under-the-table payroll wages that defrauded the government, workers compensation insurance carriers and the state unemployment benefits program of more than $1.6 million. 

This entry was posted on Monday, July 19th, 2021 at 5:26 pm. Both comments and pings are currently closed.