Posted on Sat, Nov. 7, 2009
Two Michigan men were convicted in U.S. District Court in Philadelphia yesterday of fraudulently gaining control of four small businesses and draining their assets.
Kenneth Mitan, 50, and Frank Mitan, 84, both of Farmington Hills, Mich., were accused of diverting assets from the firms to their own accounts between 2005 and 2008, and failing to pay the agreed-on purchase price to sellers.
One of the firms cited in the case was a food-services business in Philadelphia, Benny's Cheese Co. The incident occurred in 2005. They were accused of moving $80,000 from that firm into a "shell" account. The other firms were a printing company in Reston, Va., a home-furnishings business in West Bend, Wis., and a produce distributor in East Brunswick, N.J.
Kenneth and Frank Mitan each were convicted of two counts of mail fraud and two counts of wire fraud. Kenneth Mitan was also convicted of conspiracy and using a false name in furtherance of mail fraud. Both face decades in prison when sentenced. - Nathan Gorenstein
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