by Tim Troglen
Reporter
Hudson -- The former CEO of a Solon company has been sentenced to 24 months in prison and ordered to pay $879,410 in restitution after being convicted on charges of fraudulently obtaining money from his company to pay off a loan from his mother-in-law.
David N. D'Anza, 55, of Hudson, was sentenced in U.S. District Court Feb. 17. He pleaded guilty April 21 to one count of mail fraud and three counts of filing false income tax returns, according to federal court records.
D'Anza' attorney, Jay Milano, did not return phone calls by press time.
D'Anza "fraudulently obtained money" from Solon-based W.P. Hickman from November 2002 through July 2007 by setting up a $734,500 fake consulting agreement to help pay for a $2 million loan he received from his mother-in-law, according to court documents. The records also said D'Anza submitted false invoices totaling $66,070 for work that was to have been done to Hickman's warehouse and parking lot, but was actually done to D'Anza's home.
D'Anza is the former president, chief executive officer and chairman of the board of directors for W.P. Hickman Systems Inc. in Solon, according to court documents. W.P. Hickman closed after it was acquired by another company and its credit line was pulled, according to John Sammon, assistant U.S. attorney.
The U.S. attorney's office said D'Anza also failed to report $554,410 in income.
D'Anza will begin serving his sentence in April, according to court records.
John Sammon, assistant U.S. attorney, said he was satisfied with the sentencing, which had been delayed several times. He called the case "a difficult one," in that there were several factors Judge Dan Aaron Polster had to weigh, such as whether D'Anza's crime cause his former company to close. Sammon said the judge ruled it did not.
E-mail: ttroglen@recordpub.com
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