Contractor
to plead guilty in Allen-Edmonds rip-off
Dec.
5, 2005 -- An operator of a
debt collection companythat allegedly ripped off more
than $500,00 from the Allen-Edmonds Shoe Corp. will plead
guilty to mail fraud in the case, according to documents
filed in federal court.
Charles
Yellen, an operator of Principal Credit Corp., will admit
that his firm was paid for collecting debts owed to Allen-Edmonds
that actually already had been paid.The firm collected
about $506,000 in bogus fees, according to the plea agreement.
Principal
Credit co-owner Joseph Lalota Jr. also has been charged
in the case.
The
Principal Credit Corp. scam is just one of several frauds
allegedly perpetrated against the Port Washington firm
by a former employee, Jill McBrayer.
McBrayer,
who allegedly referred the non-existent debt to Principal
Credit in exchange for kickbacks, was charged in the case,
but has since died.
McBrayer,
also known as Jill Toler, also allegedly worked with shoe
dealers to illicitly reduce their debts by misapplying
some of the payments made by big companies and crediting
them to her co-conspirators' accounts.
The
alleged beneficiaries of McBrayer's shenanigans -- Lawrence
Reese, operator of the downtown Milwaukee shoe store Van's
Shoes; Simuel Burrell, an Orlando, Florida shoe dealer;
and Joseph Scorsone, a shoe dealer in Philadelphia, Penn.
-- kicked back some of the money, the complaint said.
The
three shoe dealers also have been charged in the case.
To
read the Yellen plea agreement, click here.
Allen-Edmonds
ripped off by employee, customers, and contractor, complaint
says
Loss put at $1.2 million
Aug.
15, 2005 -- A former credit manager for the Allen-Edmonds
Shoe Corp. conspired separately with shoe stores and a collection
agency to defraud the company of $1.2 million, according
to the criminal complaint.
The
former employee, Jill McBrayer, 52, and five others involved
in the scams were charged in federal court with mail fraud.
McBrayer,
also known as Jill Toler, first raised suspicion because
she quit her Allen-Edmonds job in November, 2003, just before
year-end bonuses were handed out, according to a criminal
complaint. She worked for the company for 15 years.
An
accounting firm hired to review McBrayer's doings told Allen-Edmonds,
headquartered in Port Washington, that it had been ripped
off in "separate schemes to defraud," the complaint
said.
McBrayer
admitted to the FBI that she received kickbacks from a collection
agency, Principal Credit Corp., for hiring it to collect
on accounts that already were paid. When Principal Credit
received its commission for a job done well that it didn't
do at all, McBrayer got a piece of it, too, according to
the feds.
Principal
Credit raked in more than $500,00 in unearned commissions,
the complaint said. McBrayer got $47,000 in kickbacks.
Charles
Yellen and Joseph Lalota Jr., Principal Credit owners, were
charged in the case.
McBrayer
also worked with shoe dealers to ensure they got a little
something they didn't deserve -- she misapplied some of
the payments made by big companies in order to help out
others.
The
beneficiaries of McBrayer's shenanigans -- Lawrence Reese,
operator of the downtown Milwaukee shoe store Van's Shoes;
Simuel Burrell, an Orlando, Florida shoe dealer; and Joseph
Scorsone, a shoe dealer in Philadelphia, Penn. -- kicked
back some of the money, the complaint said.
Reese's
account was improperly reduced by almost $182,000, and he
kicked back about $6,550, the complaint said. Burrell got
a $249,000 break, and McBrayer got $4,150 from him. Scorsone
improperly benefited to the tune of $158,000; McBrayer got
at least $1,600 in return, the complaint
said.
The
three shoe dealers also have been charged in the case.
The
FBI headed up the investigation.
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