United States Attorney Mary Beth Buchanan announced today, May 17, 2002,
that David Allen Sussman, a resident of New Kensington, Pennsylvania,
pleaded guilty in federal court to charges of wire fraud, mail fraud and
bank fraud.
Sussman, age 38, pleaded guilty to two counts of wire fraud arising out
of an internet auction scheme involving eBay, one count of mail fraud
arising from a telemarketing scheme involving photo packages that were
never delivered, and two counts of bank fraud arising from a scheme to
create and pass fraudulent computer generated checks. Pleas to all of
these charges were entered before United States District Judge Gary L.
Lancaster.
In connection with the guilty pleas, Assistant United States Attorney
Nelson P. Cohen advised the court that Sussman telemarketed photo packages
to students, youth clubs, and various organizations through companies
he owned named Artistic Composite, Inc., initially located at 1401 Grandview
Avenue, Pittsburgh, Pennsylvania 15211 and then at 211 Shiloh Street,
Pittsburgh, Pennsylvania 15211, and International Photographic Services,
located at 413 Fourth Avenue, Suite 1B, Tarentum, Pennsylvania 15084.
Although the telemarketers represented that these companies were photography
studios that would produce photo packages, no photographic packages were
delivered to the paying customers. In addition, Sussman pled guilty to
bank fraud by creating and then passing computer generated checks to pay
photographers for their services. In reality, the computer generated checks
reflected bank account numbers of accounts that did not exist. Further,
Sussman pled guilty to one count of a four count indictment brought against
him by the United States Attorney's office in the District of South Carolina
for bank fraud for using bogus computer generated checks. Lastly, Sussman
pled guilty to two counts of a ten count Information brought against him
by the Fraud Section of the Criminal Division of the Department of Justice
charging him with defrauding participants in eBay auctions who were selling
or purchasing expensive watches, high quality gem stones and jewelry.
Sussman used bogus computer generated checks to pay for purchases he made
during eBay auctions, and failed to deliver similar items which he auctioned
on eBay.
Judge Lancaster scheduled sentencing for August 30, 2002.
In regard to wire fraud and mail fraud, the law provides for a total sentence
of 5 years in prison, a fine of $250,000 or both, per count. In regard
to bank fraud, the law provides for a total sentence of 30 years in prison,
a fine of $1,000,000 or both, per count. Under the Federal Sentencing
Guidelines, the actual sentence imposed is based upon the seriousness
of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, Sussman remains incarcerated in the Allegheny County
Jail.
The United States Postal Inspection Service and the Federal Bureau of
Investigation conducted the investigation that led to the prosecution
of Sussman.
###
|