FOR IMMEDIATE RELEASE
Wednesday, May 07, 2008
KENT ETCHISON PLEADS GUILTY IN U.S. FEDERAL COURT
Bill Mercer, United States Attorney for the District of Montana, announced today that during a federal court session in Missoula on May 7, 2008, before U.S. District Judge Donald W. Molloy, KENT ETCHISON, a 33-year-old resident of Vancouver, Washington, formerly of Kalispell, pled guilty to mail fraud. Sentencing is set for September 26, 2008. He is currently released on special conditions.
In an Offer of Proof filed by the United States, the government stated it would have proved at trial the following:
From 2001 until 2006, ETCHISON worked for KOFI Radio in Kalispell as an office manager. His duties were many and varied, and included sole responsibility for ordering office supplies. During his years of employment, he ordered approximately $972,000 worth of office supplies, in quantities far in excess of what KOFI could use. He fraudulently ordered primarily copier and printer supplies (cartridges, etc.), some of which were not compatible with KOFI equipment, from a handful of companies allegedly doing business across the country.
The various companies from whom ETCHISON ordered supplies appear to be engaged, either partially or entirely, in scamming businesses like KOFI, using people like ETCHISON. When ETCHISON'S actions were discovered during an accounting audit of KOFI, he wrote a letter of apology to his bosses. He later confessed to his course of conduct during an interview with a Secret Service agent. He explained during that interview that he ordered such a large of quantity of supplies because the various companies were providing him incentives or kick-backs for his orders, including merchandise, gift cards and gift checks, and cash. The more often he ordered supplies, and the more supplies he ordered, the larger his kick-back.
It is not clear whether KOFI ever received some of what ETCHISON ordered, most of which the station never could have used. It is also unclear whether ETCHISON returned some of the supplies he ordered, though there are some indications that he attempted to return merchandise.
ETCHISON'S orders, as well as his kick-backs, were received in the mail or from common carriers such as UPS and Federal Express.
ETCHISON faces possible penalties of 20 years in prison, a $250,000 fine and 3 years supervised release.
Assistant U.S. Attorney Timothy J. Racicot prosecuted the case for the United States.
The investigation was conducted by the U.S. Secret Service.
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A copy of the Offer of Proof can be obtained by contacting Sally Frank at (406) 247-4638.
