Ex-QVC manager accused of submitting fake invoices
The U.S. Attorney in Philadelphia charged a former lighting manager at QVC Inc., the West Chester-based TV and online shopping network, with orchestrating an alleged $1.8 million fake-invoice scam.
The U.S. Attorney in Philadelphia charged a former lighting manager at QVC Inc., the West Chester-based TV and online shopping network, with orchestrating an alleged $1.8 million fake-invoice scam.
Douglas S. Rae, 58, of Bethlehem, could face 20 years in prison, an $8.75 million fine, and payment of full restitution on charges of mail fraud, wire fraud, conspiracy to commit wire fraud, and money laundering, federal prosecutors said in documents filed last week.
Rae submitted $900,000 in fake invoices directly to QVC through two companies he controlled, Lighting Equipment Sales & Service Inc. and Lighting Products International Inc., according to the indictment.
Rae also funneled fake invoices to QVC through two other people, John R. Hodde, 53, of Aubrey, Texas, and Michael H. Keppler, 58, of Ridgewood, N.J., who also were charged, authorities said.
"At QVC, we take reports of unethical or unlawful business conduct on the part of our employees very seriously," QVC spokeswoman Diane Zappas said Thursday in a statement. "We are cooperating fully with the criminal proceeding."
Zappas said that the TV and online retailer "discovered this incident through our regular internal audit process and we reported it to the appropriate authorities."
QVC, one of the largest employers in Chester County, employed Rae as manager of lighting for studio operations. He worked there from July 1997 to May 2013.
Rae appeared before U.S. Magistrate Judge Lynne A. Sitarski in Philadelphia on Sept. 18 and was released on $10,000 bail. His arraignment is scheduled for Oct. 1.
John Waldron, an Allentown lawyer who represents Rae, said there had not been an exchange of information through discovery with prosecutors and "there's not much to say." Rae was not asked to testify before the grand jury that returned the indictment, Waldron said.
Lawyers representing Hodde and Keppler could not be reached for comment.
According to court documents, Hodde allowed Rae to use his American Express account to run up personal bills for travel, electronic gadgets, and dental services. Rae and Hodde then created false invoices and submitted them to QVC to cover the American Express charges.
Rae also submitted fake invoices to Hodde's employer, Barbizon Capitol Inc., which then billed QVC. Barbizon paid proceeds of the fake invoices to Rae's Lighting Products International, minus about 10 percent, court documents say.
Rae separately directed Keppler to submit false invoices to QVC through Keppler Engineers L.L.C. Keppler paid Rae's Lighting Products International the proceeds, also minus 10 percent.
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