Business Crimes Hotline

FLORIDA

Former Americable Comptroller Sentenced to Prison

Alice Pirchesky, former comptroller of Americable, Inc., was sentenced to 78 months' imprisonment and a $200,000 forfeiture following her conviction on 72 counts of an indictment arising out of schemes to defraud the IRS, the Department of Defense, and numerous cable television networks, and to launder the proceeds of the fraud.

Beginning in the early 1990s, the DOD began shutting down military bases, including bases in which Americable companies had provided cable television service. In 1997, Americable companies filed “Termination Settlement Proposals” that purportedly invoiced the expenses the Americable companies incurred as a result of the base closures. As comptroller, Pirchesky prepared the TSPs and submitted them to the DOD for payment for work that had never been performed and costs that had never been incurred. The false information had been put into the TSPs by Pirchesky or accounting employees acting at Pirchesky's behest. In a subsequent DOD audit, Pirchesky falsified the invoices underlying the false reimbursement forms and provided them to the auditor. The auditor concluded that the invoices were false. The ensuing investigation yielded other instances of Pirchesky's fraud.

One instance of fraud was the practice of writing checks against false invoices. Charles Hermanowski, an Americable executive, would falsely endorse the checks and deposit them into bank accounts he controlled.

The false invoices resulted in Hermanowski depositing over $40 million in checks into his personal bank accounts. Hermanowski never reported the funds on his personal income tax returns, and the missing funds led Americable to take a false $5 million depreciation deduction. Pirchesky provided the accountants with the false records that resulted in the false depreciation deductions.

ILLINOIS

Chicago Executives Indicted for Widespread Fraud

Chicago-area executives Stuart Levine, Jacob Kiferbaum, and P. Nicholas Hurtgen were indicted on fraud and extortion charges for allegedly engaging in insider-dealing, influence-peddling, kickbacks and corruption. The 28-count indictment alleges that the executives engaged in a fraudulent scheme to bilk various entities and receive kickbacks in the awarding of contracts in connection with four construction projects.

Levine, an attorney and businessman, allegedly received over $9 million from the fraudulent scheme. Kiferbaum, an architect and construction firm executive, and Hurtgen, an attorney and investment banker, allegedly participated in the same fraud to obtain construction business through kickbacks and other illegal means. The indictment alleges that from 2001 through 2004 the three executives engaged in a fraudulent scheme to defraud Chicago Medical School, a trust supporting Chicago Medical School and various other entities. Specifically, the indictment alleges that the executives agreed to threaten hospital representatives. In another instance, Kiferbaum included an extra $1 million in a $22-million dormitory construction project. It allegedly was agreed that the extra $1 million would be paid to Levine, and that the payment would be concealed by paying the funds to a third party through a sham marketing transaction. The government also alleged that Levine solicited a $1.5-million kickback from Kiferbaum in return for Levine's approving Mercy Hospital's new $49-million facility. Levine allegedly influenced the Planning Board to approve the new facility, but concealed his financial arrangement with Kiferbaum's company. Again, the government said, the kickback was laundered through a third individual pursuant to a sham consulting contract.

FLORIDA

Former Americable Comptroller Sentenced to Prison

Alice Pirchesky, former comptroller of Americable, Inc., was sentenced to 78 months' imprisonment and a $200,000 forfeiture following her conviction on 72 counts of an indictment arising out of schemes to defraud the IRS, the Department of Defense, and numerous cable television networks, and to launder the proceeds of the fraud.

Beginning in the early 1990s, the DOD began shutting down military bases, including bases in which Americable companies had provided cable television service. In 1997, Americable companies filed “Termination Settlement Proposals” that purportedly invoiced the expenses the Americable companies incurred as a result of the base closures. As comptroller, Pirchesky prepared the TSPs and submitted them to the DOD for payment for work that had never been performed and costs that had never been incurred. The false information had been put into the TSPs by Pirchesky or accounting employees acting at Pirchesky's behest. In a subsequent DOD audit, Pirchesky falsified the invoices underlying the false reimbursement forms and provided them to the auditor. The auditor concluded that the invoices were false. The ensuing investigation yielded other instances of Pirchesky's fraud.

One instance of fraud was the practice of writing checks against false invoices. Charles Hermanowski, an Americable executive, would falsely endorse the checks and deposit them into bank accounts he controlled.

The false invoices resulted in Hermanowski depositing over $40 million in checks into his personal bank accounts. Hermanowski never reported the funds on his personal income tax returns, and the missing funds led Americable to take a false $5 million depreciation deduction. Pirchesky provided the accountants with the false records that resulted in the false depreciation deductions.

ILLINOIS

Chicago Executives Indicted for Widespread Fraud

Chicago-area executives Stuart Levine, Jacob Kiferbaum, and P. Nicholas Hurtgen were indicted on fraud and extortion charges for allegedly engaging in insider-dealing, influence-peddling, kickbacks and corruption. The 28-count indictment alleges that the executives engaged in a fraudulent scheme to bilk various entities and receive kickbacks in the awarding of contracts in connection with four construction projects.

Levine, an attorney and businessman, allegedly received over $9 million from the fraudulent scheme. Kiferbaum, an architect and construction firm executive, and Hurtgen, an attorney and investment banker, allegedly participated in the same fraud to obtain construction business through kickbacks and other illegal means. The indictment alleges that from 2001 through 2004 the three executives engaged in a fraudulent scheme to defraud Chicago Medical School, a trust supporting Chicago Medical School and various other entities. Specifically, the indictment alleges that the executives agreed to threaten hospital representatives. In another instance, Kiferbaum included an extra $1 million in a $22-million dormitory construction project. It allegedly was agreed that the extra $1 million would be paid to Levine, and that the payment would be concealed by paying the funds to a third party through a sham marketing transaction. The government also alleged that Levine solicited a $1.5-million kickback from Kiferbaum in return for Levine's approving Mercy Hospital's new $49-million facility. Levine allegedly influenced the Planning Board to approve the new facility, but concealed his financial arrangement with Kiferbaum's company. Again, the government said, the kickback was laundered through a third individual pursuant to a sham consulting contract.