Arizona Man Pleads Guilty to Wire Fraud in Idaho Federal Court
Christopher L. Myers, 37, of Cave Creek, Arizona, pleaded guilty in United States District Court in Boise to one count of wire fraud, U.S. Attorney Wendy J. Olson announced.
Myers was indicted by a federal grand jury in Boise on May 17, 2013, on 26 counts of wire fraud.
According to the plea agreement, from April 2006 through November 2011, Myers was employed by Click Sales, Inc., doing business as ClickBank. For a portion of that time he served as the company’s comptroller.
Click Sales, Inc. operated a Boise-based internet business that facilitated payments between retailers and consumers. ClickBank received payments from consumers for the purchase price of goods and services, kept a portion of the purchase price as commission, and remitted the remainder to the retailers by checks, ACH transfers and wire transfers. Some of ClickBank’s retailer-clients failed to cash the checks in a timely manner. As comptroller, Myers was responsible for tracking these “issued but uncashed” checks.
According to the plea agreement, beginning in August 2008, on 26 separate occasions Myers wire transferred funds from ClickBank’s bank account to his personal bank accounts at a different bank.
The funds that were wire transferred corresponded to the “issued but uncashed” checks to ClickBank retailer-clients. In total, Myers admitted he wire transferred approximately $449,643 from ClickBank’s bank account to his own bank accounts.
According to the plea agreement, Myers did so with the specific intent to defraud and used the funds for personal purchases and expenditures, including mortgage payments and personal investment and retirement accounts.
Myers agreed to pay $606,989 in restitution to ClickBank, which includes $449,643 that Myers admitted he fraudulently wire transferred, and $157,346 for costs incurred by ClickBank in its internal investigation, interest and penalties.
The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000 or twice the gain or loss from the offense, and up to three years of supervised release.
Myers is scheduled to be sentenced on January 6, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Boise Police Department and the Federal Bureau of Investigation.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.