Trio of Fraudsters Pleads Guilty to Scheme

PHILADELPHIA—Nathan Allen Kriegler, 42, of Holland, PA; Ryan A. Pollack, 34, of Elkins Park; and Evan F. Appel, 34, of Philadelphia pleaded guilty today to a scheme to defraud approximately 19 retail corporations out of approximately $546,017 worth of merchandise, announced United States Attorney Zane David Memeger. The defendants were in the business of selling stolen merchandise (including laptop computers, printers, scanners, toner, televisions, and industrial printing equipment) on the Internet auction site eBay. They obtained the merchandise by providing false and fraudulent payment to the victim corporations, and then sold the stolen merchandise throughout the United States.

Kriegler was also charged with theft of government property, wire fraud, and bank fraud in connection with three additional alleged fraud schemes. The theft charges relate to Kriegler’s passing of 30 worthless checks to United States Postal Service retail locations in exchange for approximately $86,229 worth of postage stamps which he later sold on eBay at purchase prices totaling approximately $83,712. The bank fraud charges relate to a check kiting scheme in which Kriegler kited more than $500,000 in worthless checks between and among various checking accounts he maintained with 12 different banks. Kriegler also was charged with making false statements and creating false documents to obtain more than $480,000 in loans.

Kreigler faces a maximum possible sentence of 190 years’ imprisonment, a $3.75 million fine, and restitution to the victim companies and banks when sentenced on February 4, 2010. Pollack and Appel each face a maximum possible sentence of 100 years’ imprisonment, a $1.25 million fine, as well as restitution to the victim companies. Pollock’s sentencing is scheduled for February 18, 2010; Appel’s sentencing is scheduled for February 25, 2010.

The case was investigated by the United States Postal Inspection Service and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.