National Air Cargo fraudsters found guilty

A former National Air Cargo executive and his wife were found guilty Feb. 15 in a Denver federal court for defrauding the company of $5 million over two years. Michael Tew , former chief financial officer at logistics company National Air Cargo, and his wife, Kimberly Tew , submitted “dozens of false invoices for services that were never provided” between 2016 and 2018, according to a release from the IRS . [caption id="attachment_57140437" align="alignright" width="353"] (Courtesy/National Air Cargo)[/caption] The couple gambled away about $2 million of the stolen funds and purchased approximately $2.4 million in bitcoin at ATMs in the Denver area, court documents showed. The two were aided by an unnamed co-conspirator, according to a release from the U.S. Attorney’s Office for the District of Colorado. National Air Cargo did not respond to requests for comment from Air Cargo Next . Michael Tew also did not file taxes for his earned income or the stolen funds from 2016 to 2019, according to the IRS. “ FBI Denver ’s Complex Financial Crimes squad will continue to work with our state, local and federal partners to investigate and seek justice for when criminals cheat, lie and steal for their own personal gain,” FBI Special Agent in Charge Mark Michalek said in the release. Recognizing fraud Invoice fraud can occur through multiple channels, Matt Wald , chief marketing and business development officer at CoreIntegrator , an accounts payable and automation company, said in a recent white paper. “While business email compromise is a relatively new phenomenon, there are simpler invoice frauds that have been around for centuries,” he said. “Unscrupulous vendors or suppliers can commit invoice fraud by knowingly submitting false, inflated or duplicate invoices .” Inflated invoices are sent with amounts higher than what was agreed to, Wald said. Invoice fraud grew 140% year over year in the United States between 2016 and 2018, when the Tews were active, according to an FBI report. Invoice and wire fraud grew 30% YoY in 2022 to $8.8 billion, according to current FTC reports. “Unfortunately, situations like these are increasingly common as fraudsters become more sophisticated in their methods,” Brandon Fried , executive director at the Airforwarders Association , told Air Cargo Next . “Prevention starts with robust internal controls, including regular audits, multistep verification processes for wire transfers and thorough vetting of vendors and their banking details. “Encouraging a culture of skepticism and double-checking, even when dealing with known vendors, can be beneficial,” he said. From 2013 to 2018, fraudsters globally targeted more than $12 billion, the FBI report indicated. “While duplicate invoices are sometimes issued by accident, duplicate invoices are fraudulent if issued knowingly with the intent to defraud — often with a different invoice number,” Wald said in the white paper. Sentencing in the case against Michael and Kimberly Tew will be scheduled for a later date, according to court documents. “ Financial crimes are serious, and this verdict shows there are consequences to such actions,” U.S. Attorney for the District of Colorado Cole Finegan said in the release. Register here for Air Cargo Next ’s free webinar, “The Role of Drones in the Future of Air Cargo,” on Tuesday, March 26, at 11 a.m. ET

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