LSG-2004R00788

UNITED STATES DISTRICT COURT

DISTRICT OF NEW JERSEY

UNITED STATES OF AMERICA : Hon.

v. : Criminal No.

ROBERT GONZALEZ & : 18 U.S.C. §§ 1349,

GERALDINE MANUEL 26 U.S.C. § 7201 &

18 U.S.C. Section 2

Robert Gonzalez was employed by Comstock Images, Inc.

(“Comstock”), located in Mountainside, New Jersey, and worked

from his residence in Deltona, Florida. As a Comstock employee,

defendant Robert Gonzalez was responsible for overseeing its

information technology (“IT”) operations and, as needed,

purchasing computers and computer-related goods and services.

2. Beginning in or about October 2002 and continuing

through in or about November 2003, defendant Geraldine Manuel,

residing in Jersey City, New Jersey, was also employed by

Comstock, in the position of Chief Financial Officer (“CFO”). As

purchases of and payments for the work-related goods and services

purchased by defendant Robert Gonzalez were processed as follows:

(a) defendant Robert Gonzalez was authorized to approve

purchases under $1,000 made by himself and the IT specialists he

supervised, but authorization was required from a Comstock

principal for purchases over $1,000;

(b) generally, purchases were paid for at the time of

purchase by charging them to a Comstock corporate American

Express charge card that was issued in the name of defendant

Robert Gonzalez; purchases made by the IT employees supervised by

from the vendor (“vendor invoices”) describing and verifying the

purchase;

(d) defendant Robert Gonzalez and other IT employees then

submitted the “Expense Report” and “Vendor Invoice” to the

Comstock finance department for reimbursement of those expenses

incurred on the American Express charge card or other charge or

credit card; and

(e) during her tenure as the CFO, defendant Geraldine

Manuel paid the “Expense Report” by issuing and sending a

did knowingly and intentionally conspire and agree with each

other and with others to commit mail fraud and wire fraud, in

that defendant Robert Gonzalez and defendant Geraldine Manuel

devised a scheme and artifice to defraud and to obtain money and

property from Comstock by means of materially false and

fraudulent pretenses, representations, and promises, and did use

and cause the use of a private commercial interstate carrier and

interstate wire communications to execute the scheme, contrary to

1343, respectively.

OBJECT OF THE CONSPIRACY

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knowledge that these documents were false and fraudulent,

defendant Geraldine Manuel, as well as her predecessor, referred

to herein as “P.McK,” paid these Fraudulent Expense Reports with

Comstock’s funds in return for a share in the proceeds.

Recruiting Others Into the Conspiracy

6. It was a part of the conspiracy that defendant Robert

Gonzalez recruited two groups of Comstock employees into the

conspiracy: (1) those employees he supervised in the IT area,

including coconspirators “A.E.” and “E.M.”; and (2) those with

authority to reimburse employees for legitimate work-related

of Fraudulent Expense Reports which defendant Robert Gonzalez

subsequently directed those employees to create and submit to

Comstock.

Expense Reports they had submitted, defendant Robert Gonzalez

directed them to share the proceeds with him.

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Nature of the Fraudulent Expense Reports

9. It was a further part of the conspiracy that defendant

Robert Gonzalez and other coconspirators created and submitted

vendor invoices that, in some instances, were entirely fictitious

and, in other instances, were for legitimate purchases but were

inflated as to price and/or quantity.

10. It was a further part of the conspiracy that before

defendant Geraldine Manuel joined the conspiracy and routinely

paid all the Fraudulent Expense Reports submitted by the

coconspirators, defendant Robert Gonzalez would also forge and/or

copy the signature of a Comstock principal for purchases over

$1,000 to make it appear that they were duly authorized.

12. It was a further part of the conspiracy that defendant

Robert Gonzalez used duplicate copies of “Vendor Invoices” and/or

“Expense Reports” that he had previously submitted and merely

changed the date to generate additional fraudulent payments by

defendant Geraldine Manuel.

Distribution and Use of the Proceeds Derived from the Scheme

13. It was a further part of the conspiracy that the

coconspirators billed Comstock for approximately $900,000 in

fictitious and inflated expenses. Defendant Robert Gonzalez

received close to approximately $700,000, the major share of the

proceeds of the Fraudulent Expense Report scheme, after using

some of the proceeds to buy gifts for, and as pay-offs to,

Geraldine Manuel received approximately more than $115,000 in

money and gifts from the Fraudulent Expense Report scheme.

for various personal expenses, such as hotel stays, airline

tickets and other vacation amenities, jewelry, furniture,

electronic appliances and equipment for himself and members of

Express based on Fraudulent Expense Reports submitted by

defendant Robert Gonzalez and, in some instances, then sent these

checks to pay for her own expenses that she had charged on her

personal American Express charge card.

mid-2003, defendants Robert Gonzalez and Geraldine Manuel learned

that defendant Geraldine Manuel’s employment at Comstock was to

be terminated in the latter part of 2003, both defendants

accelerated the volume and frequency of the Fraudulent Expense

Reports that, respectively, they submitted to Comstock and paid

with Comstock’s funds, in order to generate credits for future

use.

Evading Detection

17. It was a further part of the conspiracy that prior to

her departure from Comstock in or about November 2003, defendant

a whole and her connection to it.

employees to determine if his Fraudulent Expense Reports scheme

had been detected.

As Part of and in Furtherance of the

Transactions Occurred in the District

of New Jersey and Elsewhere

March 15, 2003 Trip to Disney World, Florida

19. On or about March 15, 2003, defendant Robert Gonzalez

charged approximately $708.00 to his Comstock American Express

card for a round-trip airline ticket between Newark, New Jersey

and Orlando, Florida on Continental Airlines for traveler

defendant Geraldine Manuel.

20. On or about March 18, 2003, defendant Robert Gonzalez

charged approximately $55.00 to his Comstock American Express

card at Wolfgang Puck, a restaurant in Lake Buena Vista, Florida.

25. On or about March 22, 2003, defendant Robert Gonzalez

charged approximately $159.00 to his Comstock American Express

card at Walt Disney World, Group Ticket Sales, in Lake Buena

Vista, Florida.

charged approximately $158.00 to his Comstock American Express

card at Brio Millenia in Orlando, Florida.

card at Gaylord Palms Hotel in Kissimmee, Florida.

Deltona, Florida, that was based on invoices that were both

sent a Comstock check in the approximate amount of $21,089.31 via

Federal Express to defendant Robert Gonzalez in payment of the

Fraudulent Expense Reports described in paragraph 29, above.

59. On or about May 23, 2003, defendant Robert Gonzalez

charged approximately $1,120.03 for gems from Columbian Emeralds,

St. Maarten, to his Comstock American Express card.

60. On or about May 25, 2003, defendant Robert Gonzalez

charged approximately $3,200.41 to his Comstock American Express

card for “On Board Conveniences” from Adventure of the Sea Cruise

charged approximately $509.28 for a Hertz car rental in San Juan,

Puerto Rico (on or about May 25-29, 2003) to his Comstock

American Express card.

63. On or about May 29, 2003, defendant Robert Gonzalez

charged approximately $116.00 at American Airlines to his

Comstock American Express card for an additional traveler

departing from San Juan, Puerto Rico, with stopovers in Miami,

Florida; Nassau, Bahamas; and Orlando, Florida.

64. On or about May 31, 2003, defendant Robert Gonzalez

charged approximately $2,479.95 for Marriott Hotel accommodations

65. On or about May 31, 2003, defendant Robert Gonzalez

charged approximately $541.00 for American Airlines tickets for

himself and his wife for a flight departing from Nassau, Bahamas

American Express card.

that it was for the purchase of computer systems/hardware systems

from an unidentified source.

68. On or about June 17, 2003, defendant Geraldine Manuel

sent a Comstock check in the approximate amount of $13,655.26 to

American Express Payment Center to be applied to the account of

defendant Robert Gonzalez in payment of the purchases described

in paragraphs 53 through 66, above.

69. On or about August 5, 2003, defendant Robert Gonzalez

sent a Fraudulent Expense Report to Comstock in Mountainside, New

Jersey from his residence in Deltona, Florida in the approximate

Centers, Inc.

70. On or about August 5, 2003, defendant Geraldine Manuel

issued a Comstock check to the American Express in the

approximate amount of $7,969.21, to be applied to the account of

defendant Robert Gonzalez, in payment for the purchases described

in paragraphs 53 through 66, above.

Defendant Robert Gonzalez, His Family Members, and Coconspirators

72. On or about June 26, 2003, defendant Robert Gonzalez

charged approximately $432 for two Continental Airlines tickets

for Gonzalez family members, “B.R.” and “V.R.,” for a flight

departing Orlando, Florida (on or about July 2, 2003), to Miami,

Florida, to his Comstock American Express Card.

73. On or about June 26, 2003, defendant Robert Gonzalez

charged approximately $621.50 for one Continental Airlines ticket

for coconspirator “A.E.,” for a flight departing from Newark, New

Jersey (on or about July 3, 2003), to Miami, Florida, to his

Comstock American Express card.

Gonzalez, for a flight departing from Orlando, Florida (on or

charged approximately $4,798.12 to his Comstock American Express

card for a stay at the Hotel Astor, Miami Beach, Florida, for

“V.R.”

77. On or about July 31, 2003, defendant Robert Gonzalez

sent a Fraudulent Expense Report to Comstock, in Mountainside,

New Jersey, from his residence in Deltona, Florida, in the amount

of approximately $5,728.82, falsely representing that it was for

the purchase of computer systems/hardware systems from CDW

Computer Centers, Inc.

78. On or about July 31, 2003, defendant Geraldine Manuel

sent a Comstock check in the approximate amount of $5,728.82 via

Federal Express to defendant Robert Gonzalez at his residence in

Payments to and/or on Behalf of Defendant

As a further part of the conspiracy, on or about the

dates specified below, defendant Robert Gonzalez received the

following payments from the IT employees identified in the

following paragraphs 79-91, which constituted a portion of the

proceeds derived from the Fraudulent Expense Report scheme:

Approximate Date Approximate Amount Payor

79. August 29, 2002 $ 1,942.00 “A.E.”

80. August 30, 2002 $ 2,945.00 “A.E.”

81. November 6, 2002 $ 1,800.00 “A.E.”

(via wire transfer)

87. May 2, 2003 $ 2,868,86 “E.M.”

88. May 19, 2003 $ 6,777.29 “E.M.”

89. May 27, 2003 $ 6,933.45 “E.M.”

90. June 10, 2003 $ 1,973.21 “E.M.”

91. July 2, 2003 $ 5,000.00 “A.E.”

Payments From Defendant Robert Gonzalez

As a further part of the conspiracy, on or about the

dates specified below, defendant Robert Gonzalez made the

following payments to Comstock’s then-Chief Financial Officer, as

(via wire transfer)

94. June 17, 2002 $20,187.10 “P.McK.”

95. August 14, 2002 $ 7,168.10 “P.McK.”

96. July 22, 2002 $ 4,553.64 “P.McK.”

97. September 17, 2002 $ 7,301.57 “P.McK.”

98. October 8, 2002 $ 4,124.00 “P.McK.”

(via wire transfer)

99. October 11, 2002 $4,519.94 “P.McK.”

(via wire transfer)

100. July 9, 2003 $17,817.92 Geraldine Manuel

of approximately $10,868.26, falsely representing that it was for

the purchase of approximately four computer systems/hardware

Manuel sent and caused to be sent a Comstock check in the

program.

approximate amount of $5,159.36 to defendant Robert Gonzalez.

submitted a Fraudulent Expense Report to Comstock in the amount

systems. This Fraudulent Expense Report was deleted from

Comstock’s files or destroyed.

approximate amount of $26,514.48 to American Express to be

applied to the Comstock account in the name of defendant Robert

approximate amount of $32,635.31 to American Express to be

QuickBooks program.

of approximately $20,212.99, falsely representing that it was for

Manuel sent and caused to be sent a Comstock check in the

Gonzalez. This payment entry was deleted from Comstock’s

approximate amount of $28,104.95 to American Express to be

QuickBooks program.

Report was deleted from Comstock’s files or destroyed.

(a) On or about September 10, 2003, using the Great

Plains accounting program, defendant Geraldine Manuel sent and

destroyed.

113. On or about September 10, 2003, defendant Robert