Factoring Business Owner Charged With Lying to FBI
A New Jersey factoir reported a fraudulent client to the FBI. Instead of working with the Feds as they requested, he sold accounts to another factor. ABF Journal illustrator Jerry Gonzalez illustrates the fraud triangle.
Factor William Kirchgessner was charged with one count of wire fraud and one count of making a false statement in an FBI investigation. In February 2016, Kirchgessner suspected that his company was being defrauded by a trucking company located in Georgia and contacted the FBI.
FBI special agents told Kirchgessner that the trucking company was defrauding his factoring business and asked Kirchgessner to inform them if he was contacted by any other factoring business regarding the trucking company. Instead, Kirchgessner took steps to sell the fraudulent accounts receivable to a second factoring company. Kirchgessner allegedly caused the second factoring company to send a wire transfer of more than $1.6 million as part of the buyout. During a phone conversation with FBI special agents, Kirchgessner denied any knowledge of the second factoring company and concealed his personal involvement in the buyout.