Printer Friendly

NAPPCO TREASURER SENTENCED ON FRAUD CHARGES

 NAPPCO TREASURER SENTENCED ON FRAUD CHARGES
 BOSTON, Jan. 31 /PRNewswire/ -- A Medford resident and treasurer


of NAPPCO,Inc. was sentenced today after pleading guilty to a three count information charging him with: 1) making false statements to a federally insured bank, 2) misapplying funds of NAPPCO's profit sharing plan, and 3) subscribing to a false tax return.
 U.S. Attorney Wayne A. Budd, announced today that William J. Chase, 56, of 2 Teton Lane, Medford, Mass. had earlier pleaded guilty to the Information filed by Budd's office. NAPPCO was a Massachusetts corporation with its principal place of business in Northborough, Mass. Until it was liquidated in the fall of 1990, NAPPCO sold water distribution systems components to customers throughout North America.
 From November, 1987 to July, 1990, NAPPCO had a revolving line of credit at Shawmut Bank, a federally insured bank, which allowed NAPPCO to borrow 80% of the value of its accounts receivable. From December 15, 1980 onward, NAPPCO had an employee profit sharing plan of which Chase was a trustee.
 At an earlier hearing, a federal prosecutor told United States District Court Judge Douglas Woodlock that in January 1990, when NAPPCO was experiencing business reversals, Chase submitted to Shawmut as part of his accounts receivable false invoice totaling $136,441 for products allegedly sold by NAPPCO to Grinnell Corporation of St. Louis, Missouri.
 As to the misapplication of profit sharing funds, the prosecutor told Judge Woodlock that on three occasions in the last five years, Chase, as trustee of NAPPCO's profit sharing plan, transferred in excess of $320,000 from the plan to NAPPCO's corporate account. These monies as well were used to fund the ongoing operations of NAPPCO.
 Finally, as to the tax charge, the Court was informed that in March 1989, Chase signed NAPPCO's corporate tax return knowing it to be false. On that return NAPPCO took a $322,250 deduction for monies allegedly contributed by NAPPCO to its profit sharing plan. NAPPCO could not fund that contribution, and in truth and fact never did so.
 Judge Woodlock sentenced Chase to 24 months imprisonment to be followed by three years of supervised release, and ordered restitution to be paid by Chase to the NAPPCO profit sharing plan in the amount of $324,818.50.
 Budd praised the cooperation of special agents assigned to the Boston office of the Federal Bureau of Investigation, Special Agents of the Internal Revenue Service Criminal Investigation Division, and investigators from the Pension and Welfare Benefits Administration of the Department of Labor for their joint efforts on the case. The case is being prosecuted by Assistant United States Attorney Lon F. Povich of Budd's Economic Crimes Division.
 -0- 1/31/92
 /CONTACT: Press Officer, U.S. Attorney's Office, 617-223-9445/ CO: ST: Massachusetts IN: SU:


PB -- NE018 -- 5849 01/31/92 18:18 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 31, 1992
Words:471
Previous Article:API URGES SENATE TO INCLUDE ALASKA OIL EXPLORATION PROVISION IN NEW ENERGY BILL
Next Article:ARCO TAKES ISSUE WITH NEW AQMD 'RECLAIM' PROGRAM


Related Articles
FORMER BANK OFFICER GULITY OF BANK FRAUD
FORMER TREASURER OF CREDIT UNION SENTENCED IN FRAUD CASE, U.S. ATTORNEY'S OFFICE ANNOUNCES
The Uniform Unclaimed Property Act (1995).
Maxwell blasts fresh fraud trial.
What do you know about abandoned property? (Street Wise).
WE'RE ON THE WAY BACK UP; Club recovering after fraud blow.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters