Gannon & Scott, a Cranston, RI, company that refines scrap precious metals, admitted that it under-reported contents of reclaimed precious metals in a scheme to defraud customers.
Christopher Christie, a U.S. attorney with the Department of Justice, New Jersey District, made the announcement that the company pleaded guilty to a one-count Information charging conspiracy to commit mail fraud.
In its plea agreement, the company cooperated fully with the investigation by the Federal Bureau of Investigation. As part of that cooperation, Gannon & Scott also initiated a changeover to a fee structure where its processing fees and metal recovery are fully revealed to its customers.
The company also agreed to make full restitution of $291,180 - the amount of loss to its customers, as part of its plea agreement.
At sentencing, scheduled for Dec. 6, the company faces a maximum sentence of five years of probation and a statutory maximum fine equal to the greatest of $500,000 or twice the gross pecuniary gain derived from the offense or twice the gross amount of loss sustained by any victims of the offense.
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