Four Executives Sentenced for Their Roles in Multimillion-Dollar Corporate Accounting Fraud

On September 8 and 9, four executives in G3K Displays, Inc. were sentenced in the Southern District of New York for their roles in an elaborate scheme to defraud G3K’s lenders and customers out of millions of dollars. The defendants engaged in a scheme to falsely inflate G3K’s revenue and accounts receivable.  To create the false impression of sales, the defendants created phony documents, including fake and falsely inflated purchase orders purporting to reflect sales to G3K’s customers.  The defendants took elaborate steps to keep the scheme afloat and prevent G3K’s lenders and outside auditors from discovering the fraud, including the creation of fake email accounts purporting to belong to fictitious employees of Foot Locker and Adidas, G3K’s two largest customers.  United States v. Kaitz, 14-cr-845 (S.D.N.Y.).  DOJ Press Release