New York State Inspector General Catherine Leahy Scott and Niagara County District Attorney Caroline A. Wojtaszek today announced the felony theft charge against and the guilty plea of a western New York satellite television vendor for their six-figure fraud against DirecTV that was committed over at least five years while providing television service at prisons throughout the State.
Richard and Christine Wertman, of Lockport, entered a guilty plea to the charge of Grand Larceny in the Second Degree in State Supreme Court in Niagara Falls today on behalf of their company, CMW Management Service, Inc., (also known as RW Management or RW Service, Inc.) for stealing $375,000 worth of DirecTV service through the Wertmans’ companies’ contracts to provide satellite television services at six prisons across New York.
“With stunning gall, this couple used their access to State prisons and their technical expertise to perpetrate a six-figure theft of satellite television services,” said Inspector General Leahy Scott. “I will continue to use my office to protect State facilities from unscrupulous and corrupt vendors.”
“I commend the joint effort of the New York State Inspector General's Office, Second Assistant District Attorney Mary-Jean Bowman and Assistant District Attorney John Phillips for all of their hard work and dedication to ending the illegal activities of CMW Management Services, Inc. Our offices, together, built a strong case against the Defendant's deceitful and fraudulent practices," said District Attorney Wojtaszek.
An investigation by Inspector General Leahy Scott found that the Wertmans, acting through their businesses as a vendor for DirecTV, were contracted since at least January 2012 to provide DirecTV satellite television services in prisons located throughout the State, including the Attica, Great Meadow, Wende, Green Haven, Five Points and Shawangunk correctional facilities. Many of the inmate contracts entered into by the Wertmans, however, were never reported to DirecTV and the full payments for the satellite television services provided to the facilities were pocketed by the Wertmans. Throughout much of this time period, DirecTV was made aware of and was paid for satellite service at three of the six facilities for which the Wertman’s had contracts. At the other facilities, the Wertmans used unauthorized equipment and tapped into the DirecTV satellite signal, but never paid DirecTV.
Under the plea agreement entered into today, the Wertmans, on behalf of their companies, agreed to restitution and forfeiture totaling $375,000.
With today’s plea, Inspector General Leahy Scott also notified the Office of the New York State Comptroller and the New York State Office of General Services advising them of the Wertmans’ companies’ conduct should the company or its principles seek any future business dealings with the State.
The Inspector General thanked DirecTV for their assistance with the investigation, the New York State Police for their assistance with the investigation and arrest, and Niagara County District Attorney Caroline A. Wojtaszek and her office for prosecuting this matter.
