Five ripped off IT giant with $7M+ in bogus work expenses, prosecutors claim

2024-01-19 21:21

Mark Angarola, Allison Angarola, Jose Garcia, Michelle Cox, and Lisa Mincak were all arrested and charged in the US with one count each of wire fraud and wire fraud conspiracy, both of which carry a maximum sentence of 20 years in prison.

Mark Angarola, Cox, and Garcia have been charged with tax evasion and failing to report their true income to the IRS, including proceeds from the alleged embezzlement scheme.

The consultancy subcontracted some of its work out to a tech company based in New Jersey, and Mark Angarola oversaw the subcontractor, including approving invoices and expenses for purported work performed.

As part of the alleged scam, Mark Angarola arranged for the subcontractor to hire his wife, friends, and assistant, "Despite the fact that these individuals - who included a schoolteacher, a homemaker, a police sergeant, and a manger in the construction industry - lacked apparent qualifications to perform IT work," prosecutors alleged [PDF].

Then Mark Angarola approved phony invoices and business expenses submitted by his co-conspirators that his employer - the unnamed IT consultancy - paid out to the tune of $7 million or more, it is alleged.

Prosecutors claimed these expenses ultimately funded slap-up meals, hotel stays, a cruise, visits to "Gentlemen's clubs," and transportation fees including a private car service that gave the Angarolas, their kids, and friends rides to parties, cigar bars, restaurants, and strip bars.

News URL

https://go.theregister.com/feed/www.theregister.com/2024/01/19/5_fake_expenses_claim/