Feds Say Scammer|Took Exxon for $5.5M

HOUSTON (CN) – A welding business owner defrauded ExxonMobil of $5.5 million with a billing scam he ran with an Exxon worker, federal prosecutors said.
     R. Scott Jordan, 52, of Houston, turned himself in Monday after an indictment was unsealed, charging him with four counts of mail fraud and conspiracy to commit mail fraud.
     Exxon hired Jordan’s company One Source Industrial to supply welding services for large furnaces at its Baytown chemical plant from 2004 to 2010, according to the U.S. Attorney’s Office.
     Jordan worked closely with Exxon employee Gary W. Arnold, who was in charge of furnace maintenance at the plant, the indictment states.
     “Jordan and Arnold allegedly carried out a fraudulent invoicing scheme which caused Exxon to pay at least approximately $5.5 million for furnace parts and fabrication services that were never provided, were provided with materials already owned by Exxon or for which they paid an excessive amount,” the U.S. Attorney’s Office said in a statement.
     Arnold pleaded guilty to the scam and was sentenced to 63 months in federal prison. Arnold set up a sham corporation called Metal Blinds Unlimited, which he ran out of his house and whose only employee was Jordan, prosecutors claim.
     “Jordan and Arnold allegedly caused Exxon to create approximately 78 purchase orders and pay at least $5.5 million to One Source Industrial for work purportedly done by Metal Blinds,” prosecutors said.
     Arnold got $3.2 million of the stolen money, according to the indictment.
     If convicted, Jordan could spend the rest of his life in prison, as each count carries a maximum 20 years. He also faces a possible fine of more than $1 million.

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