Federal law enforcement agencies conducted an investigation that ultimately led to two men. The two men were formerly employed by the management company running a hotel on the campus of the University of Pennsylvania. They were recently arrested for fraud. Federal prosecutors say that the white collar crimes these men are accused of committing involved kickbacks and fraudulent invoices totaling over $3 million.
Reportedly, over the course of the past four years, the general manager and chief engineer took kickbacks of over $710,000 from contractors who were over-billing the Sheraton University City Hotel for services. In addition, the two men owned a washing-machine company. They are accused of submitting false invoices to the hotel worth approximately $2.5 million.
Attorneys for the men report that their clients will enter guilty pleas to the charges at the first available opportunity. They are said to be cooperating with prosecutors. By the time the allegations against the men were made public in Feb. 2014, both men were no longer employed at the hotel. The men want to take responsibility for their actions in order to reduce any adverse effects their actions may have on the University of Pennsylvania.
There are cases in which individuals accused of white collar crimes are faced with overwhelming amounts of evidence. When that happens, a person’s criminal defense team will often present another alternative as a resolution to the charges. At trial, there is a possibility of the maximum penalties being imposed. Negotiating a plea bargain and/or arranging to plead guilty to the charges might result in less severe penalties than going to trial.
Source: philly.com, “Two hotel managers accused of fraud“, Jeremy Roebuck, May 27, 2015