BOSTON – A North Carolina man pleaded guilty yesterday to conspiring to defraud his former employer, a Massachusetts-based uniform supply company, by falsifying invoices.
Keith Smedley, 49, pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Oct. 12, 2021.
From approximately 1998 to April 2019, Smedley and others defrauded the uniform supply company by causing it to pay fake invoices for products that were not actually delivered, and by diverting other products that they re-sold for their own benefit. In addition, Smedley and his co-conspirators created a fake supply company, and Smedley caused the uniform-supply company to pay thousands of dollars in invoices to the fake supplier for purported products that he knew would never be delivered.
Smedley is the second former employee of the uniform-supply company to plead guilty in connection with the conspiracy. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The charge of conspiracy to commit mail fraud and wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Department of Justice
Office of the U.S. Attorney
District of Massachusetts