Florida man pleads guilty to bilking Fla. company, Mass. investment firm of millions
Court papers said a Massachusetts investing firm, identified only as Company A, had a controlling investment in Company B.
Schnitzer, the indictment said, funneled cash from Company B's accounts to a personal investment account that he controlled.
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The filing said he labeled most of the transfers as ''equity distributions,' thereby creating the false impression that the transfers to his personal investment account were payments to one or more of Company B's equity holders.'
To hide the fraud, authorities said, Schnitzer 'falsified the monthly financial reports for Company B to show inflated cash balances in Company B's accounts, and transmitted those falsified reports by email to Company B's board of managers, which included representatives of Company A who were located in Massachusetts.'
The scheme came to light, court papers said, when the IRS flagged two missing quarterly tax payments from Company B that Schnitzer was normally responsible for processing.
On May 19 of last year, an affidavit said, Company A revoked Schnitzer's access to Company B's systems.
Schnitzer sent a text to the president of Company B the following day that read, ''[W]hile I thought you were in to check on things this week, it has unfortunately become apparent to me with the locking of my access that you no longer want me as an employee,'' the affidavit said. 'This deeply saddens me as the situation of tax was a fixable problem and again my apologies for that. I'm saving you the trouble of a difficult, emotional conversation as I've thoroughly enjoyed working and learning from you over the years. … Thank you for everything as it has been a pleasure working with and I wish you all the best.'
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A plea deal filed in the case said Schnitzer faces a maximum sentence of 20 years behind bars, and that prosecutors will recommend a prison term 'within the Guidelines sentencing range' for him.
The feds will also seek a restitution order of $5.8 million for Schnitzer, who's been down this road before.
'Public court records indicate that Schnitzer pleaded guilty to one count of wire fraud in February 2003,' said the affidavit filed last May. 'The court sentenced him to 24 months in prison and ordered restitution in the amount of $715,000. Based on the payments reflected on the public docket, I believe that Schnitzer continues to owe over $700,000 in restitution in connection with that case.'
His sentencing is scheduled for May 6, records show. He's currently in custody.
Travis Andersen can be reached at
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