Arkansas Couple Convicted of Million-dollar Ink and Toner Scam

A husband and wife from Arkansas, Derek and Danita Willis of Russellville, Ark. have pled guilty for their role in a six-year printer ink and toner scam which cost the city of Philadelphia over $1 million, reported The Pennsylvania Record.

Derek Willis will face a maximum possible sentence of 120 years in prison, a maximum forfeit of $2.25 million, a $900 special assessment, and supervised release. Danita Willis faces a maximum possible sentence of 110 years in prison, a maximum forfeit of $1.75 million, a $700 special assessment, and supervised release.

The fraud lasted from January 2006 to January 2012, in which the Philadelphia Water Department (PWD) were defrauded of more than $1 million.  The department purchased and paid shipping costs for printer ink and toner cartridges, but these products were then sold by its staff to the couple at a lower price. Duncan pleaded guilty on Aug. 9, 2013, and will be sentenced on July 18, 2014.

In Russellville, the Willises owned a business called Laser Cartridge Plus Inc. (LCP). FBI said the convicted couple were reached by Calvin Duncan, a mailroom clerk from the PWD. At that time, Duncan was responsible for mail deliveries and purchasing supplies for the administrative offices of PWD, including printer ink and toner cartridges.

Duncan filed requests for approval to purchase printer ink and toner cartridges, falsely claiming that the cartridges were for PWD employees. Receiving the printer ink and toner cartridges from the approved vendors at Philadelphia’s expense, Duncan sold the printer ink and toner cartridges to LCP.

The scam caused the city of Philadelphia to pay approximately $1,368,091.19 on purchase orders and shipping costs.
Also, Derek and Danita Willis paid Duncan about $545,412.79 for the printer ink and toner cartridges purchased with Philadelphia funds and shipped to LCP using PWD’s UPS shipping account.

The couple are convicted of five counts of mail fraud, obstruction of justice for the destruction of documents related to the fraud scheme, and perjury for knowingly making false statements to the grand jury on May 8, 2012. A sentencing hearing is scheduled for Oct. 10, 2014.