Former Employee of Planet Fitness Holdings LLC Pleads Guilty to Mail Fraud
CONCORD, NH - October 27, 2015 - Nicholas Selby, age 31, pleaded guilty to engaging in a scheme to defraud Planet Fitness Holdings, LLC, Newington, New Hampshire (“Planet Fitness”) of more than $920,000, announced Acting United States Attorney Donald Feith.
Planet Fitness owns and operates 58 health clubs in eight states and Canada. An additional 942 health clubs are operated under franchise agreements with Planet Fitness.
Selby worked as a systems engineer at Planet Fitness. From November 2013 to March 2015, Selby caused Planet Fitness to pay for more than 1,800 iPads by submitting more than 90 invoices to the company’s accounts payable department that falsely described the items purchased. Selby bought the iPads from technology vendors with whom Planet Fitness maintained credit accounts. The iPads were shipped via interstate commercial mail carriers to Planet Fitness’ corporate office, where Selby took delivery and sold them to companies in Rexburg, Idaho, and Lawton, Oklahoma.
Selby’s scheme was discovered when an employee of Planet Fitness had a telephone call concerning the status of a legitimately ordered iPad which led to the vendor discussing the orders placed by Selby. Planet Fitness then conducted an internal investigation to document the fraud and reported it to the Newington Police.
A former resident of Madbury, New Hampshire, Selby now lives in Snellville, Georgia.
Selby will be sentenced by Chief United States District Court Judge Joseph N. Laplante on January 28, 2016.
The maximum prison term for the offense to which Selby pleaded guilty, mail fraud, is 20 years. The maximum fine for mail fraud is the amount that is equal to twice the gross gain or gross loss caused by the offense, whichever is greater.
The case was investigated by the Newington, New Hampshire Police Department and the Federal Bureau of Investigation.
U.S. Attorney’s Office
District of New Hampshire
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