A Purchase construction company executive has been charged with using phony invoicing and kickback schemes to steal funds from his employer.
Alex Thompson of Newark, New Jersey pocketed more than $115,000, according to a criminal information document filed by the U.S. Attorney’s office in White Plains federal court.
He pleaded guilty to wire fraud on Oct. 19 before U.S. Magistrate Judge Judith C. McCarthy.
Thompson was responsible for budgeting construction projects, soliciting bids from subcontractors, awarding contracts and approving invoices from 2018 to 2019 for a Purchase construction company that is not identified in court papers.
Thompson and an unidentified co-conspirator formed a company in New Jersey. Then, the co-conspirator registered alternative names for the company that are similar to the name of Thompson’s employer and to the names of subcontractors used by his employer.
They opened a business bank account and designated the phony company names as “doing business as” entities.
The subcontractors whose names Thompson and his accomplice mimicked did not know about the scheme.
From September 2019 to November 2020, Thompson and his cohort created invoices on subcontractor letterheads for work that had not been done. Thompson submitted the invoices to his employer, checks were issued, he promised to deliver the checks to the subcontractors and instead he deposited or cashed checks totaling $92,391.
He also stole and deposited a $7,953 check made out to his employer by a Connecticut utility company.
The kickback scheme was set up by a representative of a paving company. The unidentified conspirator asked Thompson in mid-2019 if he would help inflate prices on subcontracts. Thompson agreed, according to the government.
Thompson then selected the paving company from a pool of bidders for various jobs. Three times, according to the feds, the accomplice submitted change orders that overstated the value of work to be done. Thompson approved the change orders and his employer paid the inflated invoices.
The accomplice kicked back $17,100 to Thompson and paved his home driveway ”” a service worth about $5,000 ”” for free.
Sentencing by U.S. District Judge Kenneth M. Karas is scheduled for Feb. 16.
Federal prosecutor Stephanie Simon is handling the case. Thompson is represented by White Plains attorney Stephen R. Lewis.
