Dec 30, 2008 1:14 pm US/Central
Deerfield Couple Tied To $31 M Best Buy Scheme
ST. PAUL, Minn. (STNG) ―
A Deerfield couple is suspected of being involved in a kickback scheme that authorities believe defrauded Minnesota-based electronics retailer Best Buy of at least $31 million.
The suspected involvement of Abby Cole, owner of the Chip Factory, 151 S. Pfingsten Road in Deerfield, and her husband, Russell, the firm's president, was alleged in an affidavit filed Dec. 22 in U.S. District Court in St. Paul, Minn. The couple has not been charged with any crime.
But the affidavit by U.S. Postal Inspector Barry Bouchie lays the groundwork for seizing the Coles' property at 216 Kenmore Ave. Authorities believe the Coles purchased the land, tore down an existing home and built a new custom home using $2.8 million in proceeds fraudulently obtained from Best Buy, according to the affidavit.
The money allegedly came from a scheme in which Chip Factory participated from 2003 through 2007 with Robert Bossany, a Best Buy employee at the Richfield, Minn. corporate headquarters who was responsible for managing the purchase of computer parts from outside vendors, according to the affidavit.
Chip Factory placed the lowest bids in an online auction for supplying computer parts to Best Buy and was issued purchase orders, according to the affidavit. But Chip Factory instead sent invoices to Best Buy "at a price significantly higher than its bid price," Bouchie alleged. The invoices over the four-year period billed Best Buy for a total $60 million, defrauding Best Buy "out of at least $31 million," Bouchie alleged.
Bossany was charged Dec. 15 with conspiracy and money laundering in connection with the scheme. He is scheduled to appear in court Jan. 22.
The Coles repeatedly gave Bossany "cash and property to corruptly influence (his) loyalty and performance of his duties for Best Buy," according to the court document filed by U.S. Attorney Frank McGill Jr. They mailed to his home magazines, compact discs or DVDs "into which were inserted cash, checks or gift cards," the document states.
Chip Factory's income from 2003 through 2007 was virtually all derived from its business with Best Buy, according to tax returns cited in Bouchie's affidavit. The Coles' reported wages and corporate earnings for the same period totaled $13.8 million.
House at risk?
Because the Kenmore Avenue residence was "purchased and constructed with proceeds of mail fraud," authorities believe it should be subject to forfeiture, Bouchie stated in the affidavit.
The Coles did not return calls placed to their residence. Attempts to phone the Chip Factory for comment were unsuccessful.
The federal investigation is being conducted jointly by the U.S. Postal Inspection Service, the Internal Revenue Service's Criminal Investigation Division and the FBI.
(Source: Sun-Times News Group Wire © Chicago Sun-Times 2009. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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