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Industry

Two plead guilty to Xerox toner fraud

Back in April, five men from Florida were accused of defrauding Xerox out of $21m (£16m) in toner materials over a period of five years.

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Xerox alleges the group stole $24.8m in toner materials to sell on

As the Democrat & Chronicle reports, on November 2nd accused Kyle Haynes and Bryan Day admitted guilt to the charges, which were conspiracy to commit mail and wire fraud, as well as filing false tax returns. They agreed to repay the government more than $20,000 (£15,400) each but could face up to 78 months in prison for the conspiracy charge. 

The scheme, according to the plea agreements and assistant US attorney Richard Resnick, involved the creation of a fake printing company called HGH Graphics, which also went by the name Aldar Securities. Xerox sold and leased equipment to Florida resident Robert Lee Fisher, who then resold or leased equipment to these two firms, which were not permitted to sell on any equipment. Instead, they would pay Xerox for the amount of prints sold. 

Between 2008 and 2013, the five men accused lied about how much toner was being used, selling on the Xerox toner to others

Between 2008 and 2013, the five men accused lied about how much toner was being used, selling on the Xerox toner to others. According to the plea agreement, they sold the materials for more than $11m (£8.5m) although Xerox maintains that the retail value of the good sold is closer to $24.8m (£19m). The debate over the final value of goods will have an impact on the sentencing for the accused. 

Robert Lee Fisher and Jason Haynes still face charges. David Haynes, who is the father of Kyle Haynes and Jason Haynes, also admitted to filing false tax returns and is due to repay around $17,000 (£13,000) and could face up to six months in jail. 

If you have a news story, email summer@linkpublishing.co.uk or reach out on Twitter to have your say.


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