When you write about a massive Ponzi scheme or substantial fraud with multiple variations and many victims, you come to expect intelligence when the fraud is discovered. Then, however, you come across a fraud that reminds you that all frauds aren’t well thought out. As I state often, every choice has a consequence. In this case I just shake my head as the crime was dumb from the beginning!
Todd Olynciw was a project management manager at The Hartford Insurance Company (“The Hartford”) and was responsible for managing office renovations. Terrance Healy was the owner and operator of Sundrop Corporation, a business engaged in interior design and furniture installation for Connecticut and Massachusetts companies. Seems that Healy admitted that he conspired with Olynciw to transport in interstate commerce furniture that was owned by and belonged to The Hartford, knowing that the furniture was stolen and taken by fraud.
Hum…stealing furniture and reselling it. Now, if you’re going to commit a fraud is that the brightest thing to do? Actually, committing a fraud is dumb no matter how you slice it. But conspiracy to commit a fraud is inherently flawed. Two involved together in a fraud mean you start with a 50% chance that someone will have an “ethics” moment and confess. But on with the story…
On numerous occasions between 1998 and 2005, Healy paid Olynciw a total of approximately $71,854 for furniture that was owned by and belonged to The Hartford. On several occasions, Olynciw caused the stolen furniture to be transported from a facility in Massachusetts to Healy in Connecticut. But there’s more to the story…as it doesn’t stop here.
Healy and Olynciw also conspired to defraud the Internal Revenue Service. (That is never a smart thing to do!) Starting in approximately April 2000, Healy gave Olynciw cash for the stolen furniture so that Olynciw could avoid detection and assessment by the Internal Revenue Service for these payments. Olynciw did not report the payments that he received from Healy for the stolen furniture on his federal income tax returns.
Olynciw elected to plead guilty to mail fraud and tax evasion. He is scheduled to be sentenced on April 30th. Healy, age 62, just plead guilty and is facing 5 years in prison and up to a $250,000 fine. The Hartford lost $876,437 as a result of the scheme, and Olynciw received more than $395,720 in illegal kickbacks.
As a white collar crime and business ethics speaker, I see so often the impact that choices have made on people’s lives. You do reap what you sow. Both Healy and Olynciw will likely spend time in federal prison. That is not a place to begin one’s retirement – as it appears Healy will be doing.
When Healy and Olynciw take their first steps into federal prison – when they go through processing – when they are given their prison uniform…then it will begin to settle in – crime doesn’t pay!
Your comments are welcome!