A few years ago we were engaged by an investor group to research a man who claimed his firm was the largest pasta, olive oil and tomato sauce importer in the USA. The client was introduced to this man by a trusted source with whom they had co-invested and/or shared investment ideas with from time to time. Our research showed numerous aliases, dozens of false claims, and 3 prior arrests for fraud (2 for bank fraud and 1 for mail fraud). In 1998 he was arrested for scheming to defraud a Canadian investment firm out of $180 million, while serving time in jail for a different fraudulent scheme. Based on our report, our client did not invest, and told the person who referred him to them of our findings. He was arrested by the FBI again in June 2016.
The most recent scheme, hatched around 2012, involved soliciting loans and other financing from investors in Kansas City and Florida to purchase olive oil in order to deliver on contracts to major retailers that did not exist. The man created phony bank statements and tax records to show the investors, and he did not have the cash, inventory and contracts that he said he had. He faces up to 20 years in jail should he be convicted, after serving approximately 9 years for the prior offenses.
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Peter Barakett, President
Due Diligence Consulting LLC
DDC Investigations LLC
