Individuals Indicted for Scheming CP Manufacturers
Six individuals have been charged with conspiracy and wire fraud arising from their scheme to defraud consumer product manufacturers, announced Acting Assistant Attorney General of the Criminal Division Matthew Friedrich and U.S. Attorney for the Southern District of Indiana Timothy Morrison on Oct. 29, 2008.
The indictment alleges that between January 2000 and October 2008, the six defendants obtained consumer goods at discounted prices from manufacturers and distributors of consumer products by falsely informing them that the defendants would donate those products to non-profit organizations for promotional purposes. In fact, the defendants intended to, and did, sell those goods at substantial profit to wholesalers, retail stores and others.
According to the indictment, manufacturers of consumer products often set aside a portion of their product to be sold to charitable organizations, to various programs that market and promote the manufacturers' product and to authorized retailers outside of the United States for substantially discounted prices. Manufacturers often do so to aid humanitarian organizations, to engender goodwill for their product and to increase sales for their product by promoting it to a new sector of the market.
The indictment alleges that between January 2000 and October 2008, the six defendants obtained consumer goods at discounted prices from manufacturers and distributors of consumer products by falsely informing them that the defendants would donate those products to non-profit organizations for promotional purposes. In fact, the defendants intended to, and did, sell those goods at substantial profit to wholesalers, retail stores and others.
According to the indictment, manufacturers of consumer products often set aside a portion of their product to be sold to charitable organizations, to various programs that market and promote the manufacturers' product and to authorized retailers outside of the United States for substantially discounted prices. Manufacturers often do so to aid humanitarian organizations, to engender goodwill for their product and to increase sales for their product by promoting it to a new sector of the market.