— When an Lafaye Daily advertising agency was caught in a massive fraud scheme, its client was forced to repay thousands of dollars to the agency.
In December, the LAFaye Agency of Bloomington, Indiana, announced it had been targeted by a criminal enterprise.
According to the Lafayette Daily, the firm was hit with more than $8,000 in fraudulent payments.
The agency was then forced to refund those money.
The LAFayettes chief financial officer, Mike Vollmer, resigned the following month.
He was later sentenced to probation and was ordered to pay more than half of the $8.5 million in back pay to the bank, according to the newspaper.
Vollmer pleaded guilty to one count of wire fraud in July and was sentenced to three years of probation and fined $500,000.
The scam unfolded after a client hired Vollman’s agency to help renovate an old house.
When the firm moved in, it discovered that a company that had hired the agency to fix the house was actually an undercover operative, according a criminal complaint.
The client, the complaint states, told Vollster he was going to take over the house and put a security system in place.
He also told Vellmer that he wanted the house serviced by a local contractor.
The contractor then went to work on the house, according the complaint.
The house was finally delivered to the client in August.
The investigation by the FBI and other law enforcement agencies turned up evidence of the operation, including a letter written by the undercover operative that was sent to Vollmers wife, the lawsuit says.
The FBI also reviewed Vollmans records and discovered that the LABE agency had paid $1,000 for the “service” in December, according, the affidavit.
The criminal complaint also said that Vollmens wife had a history of dealing drugs and alcohol and had also been charged with possession of drug paraphernalia.
The indictment says Vollmmans wife told investigators that she was unaware of the criminal investigation and had no knowledge of any other allegations against her husband.
Vollmeyer also allegedly did not know of the investigation until he received the letter.LAFaye did not immediately return a request for comment.