(WNY News Now) – A North Carolina man has admitted guilt in a scheme that deceived hundreds of U.S. companies, accumulating over $860,000 in fraudulent payments.
ROCHESTER, N.Y. — Nicholas Scarantino, a 30-year-old from North Carolina, pleaded guilty to conspiracy to commit mail fraud, a charge that could lead to a maximum of 20 years in prison and a fine of up to $250,000. Chief U.S. District Judge Elizabeth A. Wolford accepted Scarantino’s plea on charges stemming from a mail fraud scheme that affected hundreds of companies nationwide, including several in New York.
Scarantino was the owner of Direct Chemicals, a California-based business, through which he orchestrated the fraudulent activity. According to Assistant U.S. Attorney Richard A. Resnick, Scarantino, along with others, mailed thousands of fabricated invoices on behalf of Direct Chemicals to companies across the United States from July to November 2021. This deceptive practice led to payments from 873 companies, totaling approximately $861,268.66. Businesses in Henrietta, Lakewood, Brockport, Andover, Rochester, Avon, Tonawanda, and Niagara Falls in New York’s Western District were among those defrauded.
Federal authorities, including the FBI, U.S. Postal Inspection Service, and IRS Criminal Investigation, conducted an in-depth investigation into the scheme. The agencies coordinated efforts to uncover the breadth of the fraudulent operation, which spanned multiple states and involved numerous companies. The FBI’s Special Agent-in-Charge Matthew Miraglia, Inspector Ketty Larco-Ward of the Postal Inspection Service, and IRS Special Agent-in-Charge Thomas M. Fattorusso led the investigative teams.
Sentencing for Scarantino is scheduled for March 17, 2025, before Judge Wolford, where he faces potential prison time and a substantial fine.