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Maryland Telemarketer Arrested on $50 Million Mail Fraud Scheme

 
September 08, 2017


By Mandi Nowitz, Web Editor


Eric Epstein, 57, of Pompano Beach, Florida, was arrested in connection with attempting to defraud the IRS. Epstein is formerly of Owings Mills, Maryland as the news was revealed by acting Maryland Attorney General, Stephen M. Schenning, on Wednesday. Epstein reportedly obtained his $50 million via multiple illegal businesses, which included convincing churches, nonprofits, schools, and government offices to pay for goods that they did not even order in the first place. His business, “Midway Industries,” specialized in the illegal sales of light bulbs and cleaning supplies.


Epstein would inflate the prices of the products up to 900 percent of what he had paid for them and had his team working off of commission and gift cards. Though he sold the company in 2012, Epstein still watched over Midway and would have employees cold call businesses, having them claim prior involvement with the company. Along with that, Midway credit cards were heavily used for lavish purchases by not only Epstein, but those who worked alongside him.

No word on what will happen to his staff or his accomplices; mail fraud comes with a 20-year prison sentence, while conspiracy to defraud holds a five-year sentence. This just shows how vital it is to keep a thorough record of your business distributors and know whom, in fact, you are really working with. You need to know your suppliers as to not fall into a trap like Midway’s. Epstein is set to appear in court on September 15. 


Edited by Erik Linask



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