Executive Indicted In $32 Million Computer Leasing Scheme

A Maryland executive has been indicted for allegedly running a scam where he used fake computer purchases to dupe several companies out of $32 million, which he used to buy ocean front property and a yacht.

Alan Brian Fabian, 43, of Cockeysville, Maryland, was hit with a 23-count indictment Thursday that charged him, in part, with mail fraud, money laundering, bankruptcy fraud, perjury and obstruction of justice. If convicted on all counts, he could face a maximum sentence of 300 years in federal prison -- a maximum of 20 years for each of nine counts of mail fraud; 10 years for each of nine counts of money laundering and one count of obstruction of justice; and five years in prison for each of two counts of bankruptcy fraud and two counts of perjury.

"This alleged multi-million dollar scheme is an egregious example of an individual who exploited legitimate business for his own selfish gain," said the FBI's Special Agent in Charge William D. Chase, in a written statement. "The FBI remains committed to fighting white-collar crime because of the serious damage it does to our nation's economy."

The U.S. Attorney's Office out of Maryland reported that Fabian, a certified public accountant, allegedly defrauded an equipment leasing company, financial institutions and a government consulting company. The government claims he created two businesses to enter into phony sale-leaseback transactions to purportedly purchase $32 million in computer hardware and software, when in fact he either never purchased the equipment or purchased substantially less expensive equipment.

Prosecutors allege that Fabian provided false bills of sale, equipment addendums, and other documents purporting to reflect that he had bought computer equipment, when in fact he had not purchased the equipment, so he did not have that equipment to sell and lease back.

Fabian allegedly diverted substantial amounts of the money for his personal benefit, including at least $500,000 to purchase real estate in North Carolina, $600,000 to pay for private jet travel and $3.9 million to form and operate the Centre for Management and Technology (CMAT), a not-for-profit entity located in Baltimore.

The indictment seeks the forfeiture of $32 million in substitute assets, including eight properties in North Carolina and a property in Hunt Valley, Maryland; cash; a Silverton yacht; three vehicles; and Fabian's interest in several companies.

"Money laundering is not a victimless crime," said Francis L. Turner, special agent in charge with the IRS, in a written statement. "Not only are innocent people duped by various schemes, but the underground, untaxed economy harms the entire nation's economic strength."

Earlier this year, federal investigators filed charges in three different cases of people defrauding Cisco Systems of more than $1 million in networking equipment.

In one case, four executives of Interlink Communications Corp., an Edina, Minn., company that bought and sold new and used Cisco equipment, were charged with running a scheme on the networking company. In another case, an IT contractor for the city of Newark, N.J., was arrested for allegedly using his position to defraud Cisco of more than $10 million. And in a third case, a Massachusetts man allegedly used false identities and private mailboxes in at least 39 states to commit at least 700 instances of fraud against the networking equipment company.