2003-08-07 -- D'Ambrisi, Rudolph -- Guilty Plea -- News Release

Former Owner of Food Distribution Company Pleads Guilty in $1.8 Million False Invoicing Scheme

NEWARK- A former owner of a Long Branch wholesale food distribution company pleaded guilty today to bank fraud, admitting that he defrauded PNC Bank of approximately $1.8 million through a false invoicing scheme, U.S. Attorney Christopher J. Christie announced.

Rudolph D'Ambrisi, 49, owner of Mid Atlantic Food Distributors, pleaded guilty to a one-count Information charging bank fraud before U.S. District Judge William J. Martini.

At his plea hearing, D'Ambrisi admitted that his company had a secured multi-million dollar commercial line of credit from Midlantic Bank (now PNC Bank) to finance his business. The line of credit was to be secured by Mid Atlantic Foods accounts receivable, inventory, and other assets of the corporation, and was renewable yearly so long as the loan was fully collateralized by inventory and the corporation was financially sound.

According to the terms of his agreement with the bank, MidAtlantic Foods was entitled to draw down on the line of credit upon submission to the bank of invoices demonstrating food sales to customers. Beginning in 1998 and continuing through 1999, D'Ambrisi admitted that he caused false invoices to be submitted to the bank in order to withdraw funds from the line of credit that he would otherwise not be entitled to obtain. These invoices reflected sales of millions of dollars of inventory to various customers, when in fact Mid Atlantic Foods had made no such sales to these customers.

D'Ambrisi also admitted that he caused the dates on invoice reports submitted to Midlantic Bank to be altered in order to conceal that payments from customers were overdue.

In an attempt to conceal his fraudulent activity, D'Ambrisi admitted he made regular periodic loan payments to the Bank until he became financially unable to do so in or about the spring of 1999, thereby causing a loss to PNC Bank in the amount of approximately $1.8 million.

D'Ambrisi faces a maximum prison sentence of 30 years and a fine of up to $1 million when he is sentenced on Nov. 7, 2003.

Christie credited Special Agents of the Federal Bureau of Investigation, under the direction of Louie F. Allen , with bringing the case against the defendants.

The case is being handled by Assistant U.S. Attorney Michele Brown of the U.S. Attorney's Commercial Crimes Unit in Newark.

-end-

Defense Counsel:

John D. Arseneault, Esq. Chatham