Press Release  Six Arraigned in National False Invoice Scheme

Haverhill, Massachusetts — Six people were arraigned today in Haverhill District Court on numerous counts of larceny, money laundering and fraud following a three-month investigation involving local, state and federal authorities into a false invoice scheme.   

Susan Yerdon, 47, Vito Milone, 34, Sean Yerdon, 24, and Jennifer Madore, 28, all of Groveland,  Michael Whitcomb, 54, of Haverhill, and Dennis Lopez, 61, of Methuen, were arraigned today on charges of larceny, identity theft, money laundering, false statements concerning corporate entity, false claim to government agency, procurement fraud, and conspiracy.  Judge Stephen Abany ordered Ms. Yerdon and Mr. Whitcomb held on $100,000.  Mr. Lopez was held on $25,000; and Mr. Yerdon and Ms. Madore were released on personal recognizance. 

Essex Assistant District Attorney Philip Mallard told the court that the investigation began in October of 2014, when Haverhill Police received a report from a Texas-based factoring company that it had been defrauded of approximately $100,000.  “Factoring” is a type of financing arrangement in which a business sells its accounts receivable (invoices) to a third party (the factor) at a discount. The factor pays a percentage of the face value of the invoice to the business and collects the full amount from the customer in due course. The factor then pays the balance to the business minus the factor’s commission and other fees. 

The Texas-based company reported that they had advanced money to a company named PRO FORCE STAFFING owned by an Andover man. But when the company attempted to collect the money owed on the invoices, it learned that the customers did not exist and PRO FORCE STAFFING also disappeared.

Haverhill and Andover Police determined that the Andover man not only had no connection to the company that was opened in his name, but also that he was a victim of identity theft. As a result, Essex District Attorney’s Office launched a regional investigation into this fraud ring.

Over the past 3 months, State Police assigned to the District Attorney’s Office, in coordination with Detectives of the Haverhill Police, Andover Police, Methuen Police, Groveland Police, and Special Agents with the Office of the Inspector General of the U.S. Dept. of Housing and Urban Development, conducted an extensive investigation. 

In addition to the alleged factoring fraud, the investigation found that Mr. Lopez allegedly fraudulently misstated his income as being solely Social Security Disability Insurance and received Section 8 housing as a result. 

In coordination with the six arrest warrants, five search warrants were executed on Friday, February 6, 2015.  Two of search warrants pertained to the searches of Methuen and Groveland locations associated with this scheme. Three of the search warrants seized five motor vehicles that were purchased with funds stolen and laundered through this scheme under the forfeiture powers provided under the money laundering statute. Those vehicles include a Mercedes Benz E Class AMG, a GMC Yukon Denali, a BMW 328I, a Cadillac DTS, and a Pontiac Solstice.

All of the defendants are presumed innocent until proven guilty and are scheduled to return to court on March 4, 2015 for a Pre-Trial Conference.

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