Former Chandler grocer sentenced in $10M fraud scheme - KTRE.com | Lufkin and Nacogdoches, Texas

UPDATE

Former Chandler grocer sentenced in $10M fraud scheme

(Source: CBS 5 News) (Source: CBS 5 News)
PHOENIX (CBS5) -

A former Valley grocery store owner has been sentenced for running a $10 million money order fraud scheme out of his Chandler grocery store.

U.S. District Judge G. Murray Snow sentenced Gjergj Kol Mihilli, 61, of Gilbert to 51 months in prison and ordered him to pay $302,420.

Gjergj Kol Mihilli pleaded guilty to bank fraud and aggravated identity theft and his two sons, Nikolas George Mihilli, 35, and Nino Joseph Mihilli, 31, also pleaded guilty to related charges.

The 46-count indictment alleges that the three men operated a money order fraud scheme from the Mama Mia Panaderia & Market in Chandler. The business contracted with Merchants Bank of California in order to sell the bank's Unigram money orders.

Over a two-year period the trio issued thousands of false, worthless money orders, utilizing fictitious names. These false money orders were then deposited into a Wells Fargo business account, which artificially inflated the account balance, so that funds were made available to pay Merchants Bank for issuing the money orders.

The indictment alleges that the defendants issued and deposited more than 10,000 false money orders totaling approximately $10 million.

An extensive joint investigation was completed by multiple federal and state agencies including the Chandler Police Department, ICE Homeland Security Investigations and Internal Revenue Service Criminal Investigation.

Copyright 2013 CBS 5 (KPHO Broadcasting Corporation). All rights reserved.

  • East Texas NewsMore>>

  • Community rallies behind newborn after overcoming obstacles left behind by Hurricane Harvey

    Community rallies behind newborn after overcoming obstacles left behind by Hurricane Harvey

    Sunday, September 24 2017 7:23 PM EDT2017-09-24 23:23:50 GMT
    (Source: Crystal Sepulvado)(Source: Crystal Sepulvado)

    When Crystal and Shane Sepulvado learned they were pregnant with their third child, they were ecstatic. But immediately Crystal knew something was not right, as relied on her experience working at an OB-GYN office. "When we looked at the ultrasound, we has seen fluid around her heart," Crystal said. Doctors later explained to the couple that their unborn child had a hole between her ventricles. With an early pregnancy, the couple was rushed to Houston,...

    More >>

    When Crystal and Shane Sepulvado learned they were pregnant with their third child, they were ecstatic. But immediately Crystal knew something was not right, as relied on her experience working at an OB-GYN office. "When we looked at the ultrasound, we has seen fluid around her heart," Crystal said. Doctors later explained to the couple that their unborn child had a hole between her ventricles. With an early pregnancy, the couple was rushed to Houston,...

    More >>
  • Defense questions investigator in third day of Henderson trial

    Defense questions investigator in third day of Henderson trial

    Friday, September 22 2017 7:19 PM EDT2017-09-22 23:19:49 GMT
    James Henderson's defense attorney, Stanley Sokolowski, started off the third day of court by questioning the state's witness, Investigator Bill Rulland. The cross examination lasted most of the morning and even a little into the afternoon. According to Investigator Michael Molnes, with the Houston County Sheriff's Office, Sokolowski attempted to discredit Brenna Theuer's witness testimony, as well as testimony from Robert Mobley.  The trial is expected to head into closing arg...More >>
    James Henderson's defense attorney, Stanley Sokolowski, started off the third day of court by questioning the state's witness, Investigator Bill Rulland. The cross examination lasted most of the morning and even a little into the afternoon. According to Investigator Michael Molnes, with the Houston County Sheriff's Office, Sokolowski attempted to discredit Brenna Theuer's witness testimony, as well as testimony from Robert Mobley.  The trial is expected to head into closing arg...More >>
  • Tar-covered tires stick to parking lot of Lufkin tire shop

    Tar-covered tires stick to parking lot of Lufkin tire shop

    Friday, September 22 2017 7:09 PM EDT2017-09-22 23:09:01 GMT
    More than a few tar-covered tires are hanging on to the parking lot of a Lufkin tire shop.  On August 31, newly laid asphalt on Loop 287 started sticking to tires of those driving, leaving many of the cars un-driveable. As of Friday, the Texas Department of Transportation hadn't come out with an official cause for the incident, but that hasn't stopped over 600 people from filing claims with them. Copyright 2017 KTRE. All rights reserved.More >>
    More than a few tar-covered tires are hanging on to the parking lot of a Lufkin tire shop.  On August 31, newly laid asphalt on Loop 287 started sticking to tires of those driving, leaving many of the cars un-driveable. As of Friday, the Texas Department of Transportation hadn't come out with an official cause for the incident, but that hasn't stopped over 600 people from filing claims with them. Copyright 2017 KTRE. All rights reserved.More >>
Powered by Frankly