BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr.
announced today that Robert C. Logel, 55, of Williamsville, NY, pleaded guilty
before Chief U.S. District Judge Frank P. Geraci, Jr. to wire fraud and tax
evasion. The charges carry a maximum penalty of 20 years in prison, and a
$250,000 fine.
Assistant U.S. Attorneys Jonathan P. Cantil and MaryEllen
Kresse, who are handling the case, stated that in 2009, the defendant was
convicted of wire fraud for defrauding two victims out of nearly $3,000,000 and
sentenced to 48 months in prison. Logel told the victims that he invested their
money in various businesses when, in fact, he used the funds himself.
Within months of being released from prison, Logel entered
into a scheme involving the production, distribution, and sale of two skin and
healthcare products. During the course of the scheme, the defendant made false
representations regarding his ability to distribute and market such products.
As a result, victims, including QuadPharma, a pharmaceutical manufacturing
company located in Clarence, NY, transferred funds to Logel which they believed
would be used to ready the products for distribution and sale. The defendant
did not, however, use the victims' money as promised. Rather, Logel used the
vast majority of the funds for his personal use, including car payments,
college tuition, rent for his and his girlfriend’s apartments, and cosmetic
surgery. QuadPharma suffered a loss of approximately $417,120. Six other
victims suffered a total loss of approximately $143,176.
In addition, the defendant failed to file income tax returns
for the tax years 2004 through 2007, resulting in a loss of $5,574,837.38 to
the Internal Revenue Service.
The plea is the result of an investigation by the Federal Bureau
of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert,
and the Internal Revenue Service, Criminal Investigation Division, under the
direction of Acting Special Agent-in-Charge Jonathan D. Larsen.
Sentencing is scheduled for August 15, 2019, at 11:00 a.m.
before Judge Geraci.
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