Three Charged in Wire Fraud Involving Kickback Scheme

United States Attorney Andrew T. Baxter, Federal Bureau of Investigation Special Agent in Charge John F. Pikus, and Special Agent in Charge, Internal Revenue Service – Criminal Investigation, Patricia J. Haynes jointly announced today that a federal grand jury returned a 29- count indictment charging defendants Joseph Queri, Jr. (51 years old of Pittsburgh, PA); Benjamin Viloski (60 years old of Oak Island, NC); and Gary Gosson (52 years old of Syracuse, NY) each with one count of conspiracy to commit mail and wire fraud; five counts of mail fraud and deprivation of honest services mail fraud; four counts of wire fraud and deprivation of honest services wire fraud; one count of conspiracy to commit money laundering and engage in transactions in criminally derived property; four counts of concealment money laundering; and three counts of transactions in criminally derived property. The above-described charges all stem from a conspiracy and scheme from 1998 through 2005 to receive and conceal kickback payments in connection with the development of new Dick’s Sporting Goods, Inc. stores. The indictment alleges that there were approximately $2 million in kickbacks paid.

The indictment also charges Queri, Gosson, and Gary Camp (65 years old of Manlius, NY) with one count of conspiracy to commit securities fraud through insider trading; and four counts of securities fraud through insider trading. In addition, the indictment charges Queri and Gosson each with one count of tender offer fraud and charges Camp with four counts of tender offer fraud. These charges stem from insider trading that occurred in connection with a tender offer that Dick’s Sporting Goods, Inc. made for Galyan’s Trading Company, Inc. in June 2004.

The conspiracy to commit mail and wire fraud count and the conspiracy to commit securities fraud through insider trading counts each carry a maximum sentence of 5 years imprisonment and a fine of $250,000.00. Each mail and wire fraud count carries a maximum sentence of 20 years imprisonment and a fine of $250,000.00. The conspiracy to commit money laundering and transactions in criminally derived property count, as well as the concealment money laundering counts each carry a maximum sentence of 20 years imprisonment and a $500,000.00 maximum fine. The transactions in criminally derived property counts each carry a maximum sentence of 10 years imprisonment and a fine of $250,000.00. Each securities fraud and tender offer fraud count carries a maximum sentence of 20 years imprisonment and a fine of $5,000,000.00.

An indictment is only an allegation of criminal conduct. Each of the defendants is presumed innocent unless and until proven guilty beyond a reasonable doubt.