A Long Island man serving as a senior manager at a Manhattan global Internet company is facing charges for allegedly running a shell company and defrauding his employer in a multi-million dollar scheme.
Floral Park resident Hicham Kabbaj, 48, was arrested for wire fraud and transacting in criminally derived proceeds, U.S. Attorney Geoffrey Berman announced. He allegedly defrauded his former employer from August 2015 through May this year.
It is alleged that Kabbaj defrauded his employer into paying a vendor named Interactive Systems for IT products and services. In total, his employer sent 52 invoices for payment to Interactive Systems.
According to Berman, in reality, Interactive Systems was a shell company controlled by Kabbaj, and the money sent from his employer was transferred into Kabbaj’s own bank accounts. In total, his former employer paid Interactive Systems more than $4.5 million during the scheme.
Kabbaj was charged with one count of wire fraud and one count of transacting in criminally derived property. If convicted, Kabbaj could face up to 20 years in prison. Berman noted that the case remains under investigation.
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