MAN INDICTED ON MAIL FRAUD CHARGES

BUFFALO, N.Y.-- A federal grand jury in Buffalo returned an indictment May 24, 2007, charging Jeffrey Caves, 48, of Monument, CO, with five counts of mail fraud, announced U.S. Attorney Terrance P. Flynn of the Western District of New York. The charges carry a maximum penalty, per count, of twenty years imprisonment and a fine of $250,000. Caves was arraigned yesterday afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy, who released Caves on a $5,000 signature bond.

Assistant U.S. Attorney Paul J. Campana said the Indictment charges the defendant with devising a scheme to defraud Rich Products Corporation during a period from 1999 through 2002. The indictment charges that while Caves was a region sales manager for Rich's, he stole money from the company by submitting false expense reports pertaining to his company-issued American Express card, stealing the proceeds of more than $80,000 in checks funded by Rich's, and using company-funded checks for personal expenses such as motor vehicles, lawn equipment, and a time-share in a residence in Colorado.

The indictment also alleges that Caves abused his company-funded American Express account by submitting duplicative reimbursement claims for the same expenses, making non-business automotive expenses for such things as car repairs, buying building and remodeling materials, and using his card for expenses for personal travel and personal accessories. The indictment also charges that Caves used his company-issued American Express card for a $5,310 purchase from a jewelry store in April 2000, an expense that he did not report to Rich's.

The Indictment was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent In Charge Laurie Bennett. The evidence was presented to the grand jury by Assistant U.S. Attorney Paul J. Campana, who will handle the trial of the case.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.