Fry Foods, Inc. Human Resources Director Sentenced to Federal Prison for Payroll and COVID-19 Testing Programs – Dailyfly.com Lewis-Clark Valley Community
United States Attorney’s Office
WOOD – A Meridian man was sentenced to 41 months in federal prison for wire fraud, mail fraud and money laundering based on schemes to defraud his employer, Fry Foods, Inc., during the early stages of the pandemic of COVID-19.
According to the plea deal, Douglas Wold, 49, of Meridian, worked as a director of human resources for Fry Foods, Inc. in Ontario, Oregon, and executed two separate schemes.
First, from at least May 2020 and until August 2020, Wold committed wire fraud by submitting fraudulent payroll claims for people who never worked at Fry Foods or were no longer working at Fry Foods at timing of pay requests. The paychecks were processed according to Wold’s requests. Wold then deposited these fraudulent paychecks into his own bank accounts.
Second, Wold committed mail fraud regarding a COVID-19 testing program at the Fry Foods site in Weiser in May 2020. Wold issued a fraudulent invoice to Fry Foods on behalf of his company, Hala Lallo Health, for 39,995 $ when in fact the tests were provided by another entity and at a much lower cost. When Fry Foods paid Hala Lallo Health for the tests, Wold deposited the funds into a bank account he controlled and did not pay the health care provider who performed the tests.
Wold committed the offense of engaging in monetary transactions in property derived from illegal activities by transferring $ 69,116.48 in the proceeds of his fraud for the purchase of a speedboat and trailer, which the government has since recovered.
“The result, in this case, reflects our office’s long-standing commitment to hold accountable anyone who engages in corporate fraud,” said Acting U.S. Attorney Rafael M. Gonzalez, Jr. “It shows also our ability to work with our law enforcement partners to promptly investigate and prosecute fraud schemes that stem from or seek to take advantage of the ongoing COVID-19 pandemic. ”
“This sentence is the price Wold will pay for abusing his position of trust to create a stream of income to which he was not entitled,” said Andy Tsui, special agent for the IRS-Criminal Investigation. “IRS-CI will continue to use our investigative resources to hold accountable those who exploit others to their financial advantage. ”
U.S. District Chief Justice David C. Nye also ordered Wold to serve three years of supervised release following his prison term. A final restitution order will be made at a hearing to be held at a later date. Wold pleaded guilty to the charges on May 18, 2021.
Acting U.S. Attorney Gonzalez praised the cooperative efforts of the Internal Revenue Service – Criminal Investigation, the Malheur County Sheriff’s Office, the Meridian Police Department and the Ada County Probation Office, which have leads to charges.