HOUSTON MAN PLEADS GUILTY IN EMBEZZLEMENT SCHEME

(HOUSTON, Texas) – An employee of an area copying center has been convicted of mail fraud in an embezzlement scheme from which he netted almost $500,000, United States Attorney Don DeGabrielle announced today.

Mohamed Ghalib, 48, Houston, an employee of Campus Document Systems, Inc., which did business as University Copy Center, Inc. (UCC), pleaded guilty today to mail fraud before U.S. District Judge Lynn N. Hughes. UCC, which has four locations in the Houston area including one on the main campus of the University of Houston, provides copier machines and services to colleges and universities.   

At this morning’s hearing, Ghalib, admitted that between May 2005 and October 2007, he embezzled bottles of toner from his employer, sold it and received more than $480,000 in proceeds from the fraud. 

UCC leased the copier machines at its University of Houston facility from a North American subsidiary of a Dutch company, Océ N.V (Océ). Under the lease agreement, UCC could order quantities of toner from Océ that were in line with the volume of copies made at its facilities; such quantities were included in UCC’s monthly lease payment. Ghalib was responsible for ordering toner for UCC’s University of Houston facility, which Océ shipped from Chicago via interstate commercial carriers. However, Ghalib ordered toner in quantities that far exceeded the amount necessary given the number of copies being made. Without informing Océ or UCC, Ghalib sold thousands of bottles of toner, mostly to a company located in Pittsburgh, Pa.  Ghalib received checks sent via commercial interstate carrier at his Houston residence as payment from the company and used the proceeds to fund a brokerage account and to give to family members in the United States and overseas.

Océ caught on to Ghalib’s scheme after he had placed multiple orders for toner during September 2007. A federal investigation was initiated and on Oct. 1, 2007, while under FBI surveillance, a shipment of toner was delivered by a commercial interstate carrier to UCC’s University of Houston facility. Ghalib signed for the shipment and placed the shipment in a storage area a short distance from the facility. The toner was next seen by FBI agents in the rear of Ghalib’s car. Later that day, agents followed Ghalib to his residence and watched him remove the toner from his car and stack it in his garage. While Ghalib was standing in his driveway, FBI agents confronted him. Ghalib confessed he had been taking toner for several years and selling it. The toner was seized and FBI agents also recovered toner taken by Ghalib from UCC prior to Oct. 1, 2007.
 
Ghalib faces up to 20 years imprisonment and a fine of up to $250,000 for the mail fraud conviction. Sentencing is set for April 21, 2008. He will remain free on bond pending his sentencing hearing.

The investigation leading to the charges was conducted by the Houston field office of the FBI. The case is being prosecuted by Assistant U.S. Attorney Stephen L. Corso.