Advertisement
The Aegis
Harford County

Longtime Harford County manufacturing manager pleads guilty to $20 million kickback scheme

In 2012, Elliott Dennis Kleinman used his management position to execute a fraudulent billing scheme, according to the Maryland U.S. Attorney’s Office. Wednesday, he pleaded guilty in U.S. District Court in Baltimore to conspiracy to commit wire fraud and tax evasion, in connection with a kickback scheme that defrauded his employer of more than $20 million.

Kleinman, 68, of Bel Air, was a longtime employee of a family-owned global business headquartered in New York that has manufacturing facilities in Belcamp and Abingdon.

Advertisement

According to the Maryland U.S. Attorney’s Office, Kleinman and another employee used their management positions to execute their scheme. They received illegal kickbacks from various drum vendors doing business with the company, which used the drums to store and transport its products.

As the facility managers, Kleinman and the other employee oversaw the purchase and storing of drums for use at the Harford County manufacturing facilities. They also had authority to review drum invoices and authorize payments to the drum vendors.

Advertisement

According to the Maryland U.S. Attorney’s Office, after Tunnel, Barrel and Drum Co., Inc., became a drum supplier to the company, Kleinman and the other employee entered into an arrangement with TBD’s owner, Anthony P. Urcioli Sr., to fraudulently invoice Kleinman’s employer for more drums than TBD sold and delivered to the company. Kleinman and the employee split their share of the kickbacks with Urcioli.

The Morning Sun

The Morning Sun

Daily

Get your morning news in your e-mail inbox. Get all the top news and sports from the baltimoresun.com.

Urcioli falsely invoiced more than $20 million between Jan. 2012 and Jan. 2020, according to the Maryland U.S. Attorney’s Office. Kleinman’s share of the kickbacks was about $2,307,121.

Kleinman opened and maintained two commercial bank accounts for a company he formed, EDK Management LTD: one in the name of “EDK Management Ltd,” and the other in the name of “EDK Management Ltd t/a Main Street Cigars,” a retail store he owns in Bel Air. Kleinman deposited checks into EDK’s business account, where funds were withdrawn as cash and spent on personal expenses or transferred to the bank account for Main Street Cigars, according to the guilty plea.

From 2017 through 2019, TBD paid Kleinman approximately $1 million in kickbacks. Kleinman’s income tax returns filed with the IRS for the time period did not report those payments as personal or business income, which caused a loss to the U.S. government of about $291,143, according to the plea.

Advertisement

Kleinman faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud and a maximum of five years in federal prison for tax evasion. U.S. District Judge Lydia Kay Griggsby has not yet scheduled sentencing.

Urcioli Sr., 78, of Park Ridge, New Jersey, previously pleaded guilty to conspiracy to commit wire fraud and filing a false tax return for his role in the scheme and is awaiting sentencing.


Advertisement