New details were released on the weekend arrests of six local residents, including four from Groveland, in an alleged national “factoring” scheme, according to the Essex District Attorney’s office.
The six are expected to be arraigned today in Haverhill District Court on conspiracy and money laundering charges, among others, for allegedly defrauding up to $680,000 from numerous victims throughout the country through a complex false invoice scheme. Their arrests were first reported Monday buy WHAV.
An investigation by Massachusetts State Police Detectives assigned to the Essex County District Attorney’s Office, in coordination with Haverhill Police, Andover Police, Methuen Police and Groveland Police detectives lead to arrest warrants executed Friday. Authorities seized five motor vehicles and the defendants were held without bail pending their court arraignment, according to Carrie Kimball-Monahan, spokesperson for Essex District Attorney Jonathan Blodgett.
Susan Yerdon, 47; Sean Yerdon, 24; Vito Milone, 34; Jennifer Madore, 28; each of Groveland, along with Michael Whitcomb, 54, of Haverhill and Dennis Lopez, 61, of Methuen, “allegedly created a company PRO FORCE STAFFING using the stolen identity of an Andover man and also created “customers” for the company. They sold the accounts receivable of the fraudulent company to factoring companies who then unable to collect from the fake customers.”
“Factoring is a financial transaction in which a business sells its accounts receivable to a third party at a discount. The third party then collects the owed money and retains a portion, Kimball-Mohahan said.
In their arrests, police seized a Mercedes Benz E Class AMG, GMC Yukon Denali, BMW 328I, Cadillac DTS and a Pontiac Solstice, according to Kimball-Monahan.