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Michigan man ordered to pay over $1M in restitution in Xerox toner fraud case

STAFF REPORTS

ROCHESTER, N.Y. -- U.S. Attorney James P. Kennedy, Jr. announced today that Carlos Garza, of Michigan, who was convicted of conspiracy to transfer stolen property in interstate commerce, was sentenced to five years probation and ordered to pay restitution in the amount of $1,369,078.46 by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Richard A. Resnick, who handled the case, stated that the Xerox Corporation in Webster, NY, provides its branded printing toner to customers who have entered into lease contracts for Xerox printers. The toner received by the customers remains the property of Xerox until it is consumed. Customers can order as much toner as needed to keep printers operational but at the end of a lease, shipping companies pick up the toner and other supplies to be returned to Xerox for resale.  At all times, unused toner remains the property of Xerox, and the customer cannot sell the toner.
Between 2010, and 2015, Garza conspired with others illegally to purchase Xerox toner. The defendant purchased the toner from the truck drivers of shipping companies who were returning the unused toner to Xerox or from Xerox agent-owners who should not have had toner to sell. Garza then sold the stolen toner to companies who specialized in purchasing and selling printing supplies. The stolen Xerox toner was transported from Michigan to various companies, including a company in the Western District of New York.
From 2010 to 2015, Garza purchased stolen Xerox toner with a retail value of approximately $1,370,000. 
A co-defendant, David Meidel, has also been convicted.  
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly; and the Internal Revenue Service, Criminal Investigation Division, under the direction of James D. Robnett, Special Agent-in-Charge, New York Field Office.