Two men from Gilbert and Tucson have been indicted on federal fraud charges that claim they created a sham company and swindled a Chandler data center’s parent companies for more than $2.3 million.
Anthony Ambrose Mc-Cutcheon, 45, of Gilbert, and Warren Joseph Rice, 41, of Tucson, convinced the parent companies that oversaw a Chandler data center that Andalusia Companies of Tucson and Chandler offered services they needed, according to federal court records.
At the time, McCutcheon was director of the data center, a branch of First Data Resources, based in Omaha, Neb.
The company is a subsidiary of First Data Corp., based in the Denver area.
Rice was an associate of McCutcheon and a representative of Andalusia Companies.
Payments to Andalusia reached back to 1997 and invoices showed that funds went toward things such as platters, disk platters, coaxial switchers, coaxial cable, panels, cartridges and tapes.
On July 24, a federal grand jury in Phoenix returned a 10-count indictment against McCutcheon and Rice on one count of conspiracy to commit mail and wire fraud and nine counts of wire fraud, the U.S. Attorney’s Office announced Friday.
Rice was arrested in late July, and McCutcheon was arrested Wednesday. Each man was released on his own recognizance. They have a trial date scheduled for Sept. 5.
The duo are alleged to have received payment by mail and wire, according to court records.
A conviction for conspiracy to commit mail and wire fraud carries a maximum penalty of five years in prison and a $250,000 fine, the U.S. Attorney’s Office said. A conviction for wire fraud is punishable by up to 20 years in prison and a $250,000 fine.