A West New York man is going to federal prison for 18 months for scamming his former company out of $1.2 million by creating fake employees, “paying” them overtime and raises, and then pocketing the paychecks.
A judge also ordered Jesus Rincon, 43, to pay $843,413 in restitution to the company, Philips Accessories and Computer Peripherals.
“This was not some impulsive act but a sustained, sophisticated, and long-term pilfering of his employer’s money,” said Assistant U.S. Attorney Scott B. McBride, who prosecuted Rincon and his partner in the scheme, Gino Silva.
The men created time sheets for fake temporary employees, then submitted the bogus time sheets to a temp agency in Edison, for five years beginning in early 2000, the government said.
They later arranged overtime and raises, in order to pump up the revenue.
The agency, Brickforce Staffing, sent Philips Accessories invoices for the salaries, which the company paid. Brickforce then sent individual paychecks that Rincon and Silva snatched and deposited, federal prosecutors said.
The men double-endorsed the checks and deposited them in nine separate personal bank accounts created to avoid detection, the government said.
By failing to disclose the income, Rincon committed tax fraud.
Silva was sentenced in June to 27 months in prison and ordered to pay Phillips the same amount as Rincon.
Acting U.S. Attorney Ralph J. Marra credited the New Jersey FBI and the IRS offices with making the cases.
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