INDIANAPOLIS – Two Indianapolis men face federal charges in a shipping scam that prosecutors say is worth more than $1.2 million.
According to U.S. Attorney Joe Hogsett, the men defrauded United Parcel Service (UPS) over a two-year period. The men—Dayton R. Sloan II, 60, of D&S Construction, and Mark Gleason, 48, a UPS employee—face charges of wire fraud and money laundering.
According to the criminal complaint, D&S Construction signed a contract with UPS to provide general contracting services for the shipping company at locations in Indiana and Illinois. Between January 2011 and December 2012, UPS paid more than $1.2 million in shipping invoices to D&S Construction. Prosecutors said Gleason signed off on the invoices, even though he was authorized by the company to submit invoices of up to $5,000.
An audit showed that many of the invoices seemed suspicious. Some included work done outside of Indiana and Illinois and included purchases of products like flatscreen televsions that aren’t typically contracted out. In addition, invoices had the names of other supervisors even though Gleason had filed them. Prosecutors said most of the invoices were fake.
According to prosecutors, Sloan would take the money UPS paid his company and deposit it in a bank account. He would then use that money to buy large amounts of pre-paid Visa gift cards. Those cards, which came in denominations as low as $100, would then be used by Gleason and Sloan to buy personal items. The men are also accused of giving the cards to family members.
The bank that handled the corporate account for D&S Construction grew suspicious of the gift card purchases coming from the account, and Sloan gave conflicting reports about the reasons he bought the gift cards. An investigation revealed purchases included more than $7,000 in jewelry, $3,000 for corrective eye surgery and more than $40,000 in car purchases.
Both Sloan and Gleason could face up to 20 years in federal prison for each of the wire fraud counts and ten years in federal prison on each count of money laundering. They also face fines and could be ordered to pay back UPS.