W. P. Hickmans' Former CEO Prosecuted by the Federal Attorney General's Office for Mail Fraud and Filing False Income Tax Returns

It was announced in December, 2008 that the former President, CEO and Chairman of the Board of Directors of W. P. Hickman of Ohio, David D'Anza, was indicted for mail fraud and three counts of filing false income tax returns.

For accuracy, the report is reposted herein, along with the link.

Recent updates will be posted after this paragraph as they are announced.


From the US DOJ Website:
http://www.usdoj.gov/usao/ohn/news/03December2008.html

"News
Release

For Release: December 3, 2008
U.S. Department of Justice

United States Attorney
Northern District of Ohio

William J. Edwards
United States Attorney

John D. Sammon
Assistant U.S. Attorney
216-622-3829



William J. Edwards, United States Attorney for the Northern District of Ohio, announced today that federal Grand Jury in Cleveland, Ohio returned an indictment charging David N. D’Anza with one count of mail fraud and three counts of filing false income tax returns. According to court records, David N. D’Anza resides in Hudson, Ohio.

The indictment alleges that D’Anza was the President, Chief Executive Officer, and Chairman of the Board of Directors of W.P. Hickman Systems, Inc. in Solon, Ohio. Hickman sold and distributed flat roofing products throughout the United States. The indictment further alleges that, from November 2002 through July 2007, D’Anza fraudulently obtained money from Hickman through three methods. First, the indictment alleges that D’Anza executed a fictitious consulting agreement with Aurgo Consultants, purportedly on behalf of Hickman. Under the terms of this agreement, Aurgo was to provide various consulting services to Hickman for $13,000 a month. The indictment alleges that the defendant knew this consulting agreement was fictitious and the $13,000 monthly payments were actually repayments on a $2 million personal loan D’Anza had received from his mother-in-law. As a result, from December 2002 through July 2007, the indictment charges that D’Anza fraudulently caused Hickman to make unauthorized payments to Aurgo Consultants totaling $734,500.

Second, the indictment alleges that D’Anza created a false and fraudulent commission agent’s agreement with Person #1, again purportedly on behalf of Hickman, whereby Person #1 was to receive $1,080 per week as a Hickman sales representative in Panama. The indictment alleges that the defendant knew full well that Person #1 was never a sales representative for Hickman in Panama or anywhere else. The indictment charges that D’Anza caused Hickman to pay Person #1 $78,840 from August 2004 through December 2005 for extensive renovations to the defendant’s personal residence in Hudson. The third means by which the defendant fraudulently obtained money from Hickman is that the defendant allegedly caused Person #1, dba T&M Builders, to submit five false invoices to Hickman for repairs purportedly done to Hickman’s warehouse and parking lot. The indictment charges that these invoices, totaling $66,070, were actually for services rendered at D’Anza’s personal residence.

The indictment charges that, as a result of D’Anza’s fraudulent conduct, Hickman sustained losses totaling $879,410.

The indictment also alleges that D’Anza filed false income tax returns for the years 2004, 2005, and 2006 in that he failed to report on those tax returns the monies he fraudulently obtained from Hickman. The indictment states that D’Anza reported total adjusted income of $1,562,141 on his tax returns for the years 2004 through 2006. The indictment alleges that D’Anza failed to report additional income for those years totaling $554,410 on which there was additional taxes due and owing of $186,865.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

This case is being prosecuted by Assistant United States Attorney John D. Sammon, following a joint investigation by the Cleveland Office of the Federal Bureau of Investigation and the Akron Office of the Internal Revenue Service, Criminal Investigation Division.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt."