11 September 2006 — Framingham (MA): Former Staples VP James Dorman has been charged with defrauding the company of more than $550,000.
US prosecutor, Michael Sullivan, an attorney in Boston, said: "It is alleged that Dorman accomplished his fraud scheme by authorising and submitting fictitious vendor invoices for which Staples issued hundreds of thousands of dollars of disbursement checks payable to three individuals or to corporate entities ostensibly owned or operated by them."
It was reported that he faces allegations of misusing his corporate American Express card for gifts, travel and other expenses related to three individuals who have not been identified.
Dorman, 39, has been charged with eight counts of mail fraud, three counts of wire fraud and three counts of money laundering.
Dorman’s attorney, Brad Bailey, said his client will enter a not guilty plea when he is arraigned on the charges in federal court on 25 September.
"He plans on vigorously fighting the charges," Bailey told reporters.
A spokesman for Staples, said Dorman, who had worked for the company since 1995, was dismissed in November after Staples became aware of "questionable activity." It is understood the company has been working with the US Attorney’s Office to bring charges against Dorman.
"All Staples associates are held accountable to our ethics guidelines and procedures. Staples does not tolerate violations of our ethics policy and will consistently enforce these policies and procedures," the company said in a statement.
Dorman faces up to 20 years in prison on each of eight counts of mail fraud and three counts of wire fraud. He faces up to 10 years on each of three counts of money laundering.