Minnesota Man Admits $1.2M Fraud Against California Tech Firm

Minneapolis, MN (KROC-AM News) - A Minnesota man has admitted to a federal fraud charge for ripping off a California-based electronics manufacturing company.

According to court documents, 53-year-old Thomas Pham of Burnsville was accused of orchestrating a scheme to defraud the company of more than $1.2 million by claiming he could arrange service agreements between the San Jose firm and his "business affiliates in the electronics and technology sectors." It was alleged that Pham provided the company with fabricated contracts and other documents to further the fraud scheme.

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A news release from the US Attorney's Office for Minnesota says Pham ultimately required the company to pay a "deposit bond" of $1.278 million as part of a contract to provide repair services to Pham's business affiliates. It was also alleged that he delivered around 20 samples of devices requiring repair to the company, but investigators determined the devices were actually stolen property.

He has entered a guilty plea to one count of wire fraud and is now awaiting sentencing.

The news release says the case is the result of an investigation that was conducted by the FBI.