Sunday, June 14, 2015

NJ man charged in Penn campus hotel fraud scheme



The owner of a New Jersey construction company is facing federal wire fraud charges in connection to a scheme that defrauded the University of Pennsylvania of millions of dollars.

Douglas Kremer, of Bloomingdale, N.J., inflated invoices for services his company, Accent Construction, provided for the Sheraton University City Hotel during March and April of 2013, according to the U.S. Attorney's Office.


Kremer, 52, allegedly inflated the charges of construction and renovation work by as much as 20 percent and then signed over the additional ill-gotten funds to a Kenneth Kapikian, the hotel's general manger, who was charged last month, the U.S. Attorney said.

The amount totaled $67,200 in the form of two checks, records show.

If Kremer is convicted, he could face up to 20 years in prison and a fine of up to $250,000.

Attempts to contact an attorney for Kremer were unsuccessful.

Fifty-seven-year-old Kapikian, of Wayne, Pa., and 60-year-old Dennis Gagliardi, of Chester Springs, Pa., were charged last month with falsely billing the Ivy league school and defrauding them of $3 million.

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