Autonomic Software - Fraud Indictment

Move the Truth

The current CEO and Chairman plus their billionaire owners should be charged with racketeering, obstruction of Justice

U.S. Attorneys » Middle District of Tennessee » News

SHARE

Department of Justice

U.S. Attorney’s Office

Middle District of Tennessee

---

FOR IMMEDIATE RELEASE

Monday, September 13, 2021

California Software Company Executives Charged In Conspiracy To Defraud The Tennessee Valley Authority

Company Allegedly Sought More Than $300,000 in Fraudulent Incentive Payments from TVA Through Software Installation in Rutherford County Schools

NASHVILLE – A seven-count indictment unsealed Friday charged two Danville, California men with conspiracy to defraud the Tennessee Valley Authority (TVA) of more than $300,000, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. 

Anthony Gigliotti, 74, the CEO of Autonomic Software, Inc., (Autonomic) was charged with conspiracy to commit wire fraud, three counts of mail fraud, and three counts of wire fraud.  Alexander Gigliotti, 36, the Vice President of Autonomic, was charged with conspiracy to commit wire fraud.  Both were arrested by U.S. Marshals in Danville, California on Friday and will appear in the Middle District of Tennessee at a later date for further proceedings. 

According to the indictment, Autonomic was a software company located in Danville, California, which provided a variety of software to private and public sector organizations.  In 2016, Autonomic installed power management software in Rutherford County school systems, in connection with TVA’s EnergyRight program, an incentive-based program designed to save energy and reduce costs through the installation of energy-saving software.  To be eligible for the energy conservation funds, customers were required to pay a portion of the software materials costs.

Instead of following the program requirements, Autonomic represented to the Rutherford County School District that schools would not incur any costs associated with the software installation.  Following the installation of the software, Autonomic submitted 47 invoices, totaling $588,240 to Lockheed Martin, the contract administrator of the EnergyRight program.  The invoices were made out to Rutherford County Schools and represented that each school incurred costs associated with Autonomic’s software installation.

Alexander Gigliotti also sent an email to a Lockheed Martin representative in support of seeking the incentive payments from TVA, with a breakdown of an invoice regarding purported costs incurred by Rutherford County Schools, claiming that the school paid $22 per computer related to software and $8 per computer related to support.  In fact, Rutherford County Schools did not incur any costs associated with any invoice from Autonomic.  Lockheed Martin then mailed incentive payments to Autonomic that corresponded to each invoice.

The Autonomic software failed to function as initially represented and approximately one year after the installation, Rutherford County Schools purchased energy saving software that could effectively quantify energy savings and which cost substantially less than Autonomic’s total purported materials costs.

The indictment also alleges that Anthony Gigliotti lied to TVA agents by falsely stating that Alexander Gigliotti was not involved in any of the previous TVA or school system work. 

If convicted, the defendants face up to 20 years in prison.

This case was investigated by the TVA Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Sara Beth Myers.

An indictment is merely an accusation.  The defendants are presumed innocent until proven guilty in a court of law. 

# # # # #

 

Topic(s): 

Financial Fraud

Component(s): 

USAO - Tennessee, Middle

Contact: 

David Boling Public Affairs Officer 615-736-5956 david.boling2@usdoj.gov

Read More

Case CIVMSN05-0778 - DANIEL HOROWITZ VS. JOSEPH LYNCH

 Case CIVMSN05-0778 - DANIEL HOROWITZ VS. JOSEPH LYNCH

Case CIVMSN05-0778 - Complaints/Parties

Complaint Number: 1 Complaint Type: CIVIL PETITION Filing Date: 06/15/2005 Complaint Status: ACTIVE
Party Number	Party Type	Party Name	Attorney	Party Status
1	PETITIONER	DANIEL HOROWITZ	Pro Per
2	PETITIONER	PAMELA VITALE	Pro Per
3	DEFENDANT	JOSEPH W LYNCH	Unrepresented	Serve Required (WaitS)

Case CIVMSN05-0778 - Actions/Minutes

Viewed	Date	Action Text	Disposition	Image
	06/25/2019	COPIES	Not Applicable
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	10/17/2005	COPIES	Not Applicable
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	10/17/2005	COPIES	Not Applicable
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	10/17/2005	COPIES	Not Applicable
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	10/17/2005	COPIES	Not Applicable
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	10/17/2005	COPIES	Not Applicable
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	10/17/2005	COPIES	Not Applicable
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	10/17/2005	COPIES	Not Applicable
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	10/17/2005	COPIES	Not Applicable
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	10/17/2005	COPIES	Not Applicable
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	10/17/2005	COPIES	Not Applicable
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	06/23/2005 1:35 PM DEPT. 59	HEARING ON OSC/TRO RE: HARASSMENT (CIVIL) FILED BY DANIEL HOROWITZ & P VITALE	DROPPED BY COURT
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	06/23/2005 1:30 PM DEPT. 59	HEARING ON OSC/TRO RE: HARASSMENT (CIVIL) FILED BY DANIEL HOROWITZ & P VITALE	NOT HEARD/CONT
Minutes     You are Not Authorized to View Minutes prior to 12/31/2099
	06/15/2005	HEARING ON OSC/TRO CIVIL HARASSMENT WAS SET FOR 6/23/05 AT 13:30 IN DEPT. 59
	06/15/2005	CASE ENTRY COMPLETE	Not Applicable
	06/15/2005	COLOR OF FILE IS BLUE	Not Applicable
	06/15/2005	PETITION OF DANIEL HOROWITZ & PAMELA VITALE FOR INJUNCTION PROHIBITING HARASSMENT AND APPLICATION FOR TRO FILED	Not Applicable

Case CIVMSN05-0778 - Pending Hearings

Date	Action Text	Disposition	Image
This Case Does Not Have Any Pending Hearings

Read More

Ex‐Vesco Aide Indicted on Fraud

My Vesco connection is Mountain Lakes NJ to Denville NJ on Old Denville Road 

LOS ANGELES, Oct. 23—Thomas P. Richardson. an associate of the fugitive financier Robert Vesco, and four other men were indicted by a Federal grand jury today for allegedly conducting a massive stock short‐selling plan in which some of the nation's most prestigious universities, several brokerage houses, and other investors lost more than $14million.

Short‐selling is the practice in which a person sells stock he does not own in the expectation that the price will go down in the future, enabling the seller to profit by later buying the same stock at a lower price before returning it to the owner of the original stock, In a bear market, short sellers can theoretically make a profit. but, government attorneys charge, the defendants in this case ran into a bull market.

In a 94‐page, 46‐count indictment, the now defunct T. P. Richardson and Company was accused of a systematic shortselling scheme involving stock that at times exceeded $25‐million in value. The company was a so‐called third‐market broker—one that matches buyers and sellers, predominantly institutions, of large blocks of stock without using the machinery of a stock exchange.

According to Stephen V. Wilson, an Assistnnt United States Attorney who presented the indictment, the victims in the alleged fraud included Harvard University, which lost $532,500; Cornell University, $374,450; Carnegie ‐ Mellon University, $347,800; Yale University, $245.775. and Columbia University, $48,150 New York's Bowery Savings Rank lost $881.075, flip Govornment charged.

Additionally, the indictment charged that a number of brokerage firms including Edwards & Manly, and L. F. Rothschild, both of New York, and the North American Equity Corporation, Los Angeles, subsidiary of the Equity Funding Corporation, lost a total of more than $3‐million.Mr. Wilson estimated that the universities lost a total of about $11‐million in the scheme, because they were unable to obtain stock from the Richardson company and thus were unable to trade it at time of peak values early this year.

According to knowledgeable sources, the company, founded in 1908, was profitable until mid‐1974, when generally poor stock market conditions affected it along with other securities companies, and then publicity regarding Mr. Richardson's as. sociation with Mr. Vesco became known and scared off some of the firm's institutional clients.

Mr. Richardson was identified during Senate hearings last summer as the owner of private jet aircraft that carried weapons and prostitutes to Mr. Vesco, who fled to Costa Rica to evade prosecution for stock manipulation and other charges.

Eugene Bell, temporary receiver from T. P. Richardson & Company, Inc., had charged that according to his investigation, Mr. Richardson, who is 36 years old, lived lavishly and charged the costs to the company, adding a further drain on its resources.

Besides the personal jet, Mr. Bell said that company funds had been used to acquire a 44‐foot fishing boat, a 42‐foot pleasure boat, 9180,000 worth of antique furniture for Mr. Richardson's home in the suburb of Bel Air here, and to lease a fleet of 11 luxury cars, including five Rolls Royces, three Cadillacs, a Maserati and a Ferrari.

Mr. Bell alleged that the company began selling on a wide scale in November, 1974, based on the expectation that the nation was on the threshold of a severe economic depres sion and that stock prices would continue to fall.

For a while, the temporary receiver of the company said, the fund profited from its short‐selling transactions. But, he continued, in January, 1975, an upturn in the stock market quickly wiped out the paper profits and losses began to mount. Then the company allegedly began a series of manipulations and issuance of fraudulent checks in an effort to meet its obligations.

In addition to Mr. Richardson, who lives in Los Angeles, also named in the indictment were Thomas C. Thomas Jr., 41, treasurer, of Los Angeles, Kevin Kelley, 37, of West Newton, Mass., a vice president in charge of the Boston office and a trader specializing in institutions in that area; John E. Kelley, 37, of Newport Beach, Calif., also a vice president and trader. Joseph C. Werba, 39, of Waldwick, N.J., formerly president of the Wells Fargo Security Clearance Corporation, a subsidiary of San Francisco's Wells Fargo Bank, who allegedly participated in the scheme, was also indicted. The defendants were charged with conspiracy, fraud, mail fraud and for allegedly violating several provisions of the Securities and Exchange Act of 1934.

Read More

CNET Scandal Indictment

Senior Contra Costa County Law Enforcement Official and Concord Private Investigator Indicted
Two Alleged to Have Engaged in a Spectrum of Corrupt Activities, Including Stealing Methamphetamine and Marijuana from Evidence and Selling it for Profit, Protection of a Prostitution Establishment, and Armed Robberies of Prostitutes

U.S. Attorney’s Office August 15, 2011

Northern District of California (415) 436-7200

SAN FRANCISCO—A federal grand jury in San Francisco indicted Norman Wielsch of Antioch, Calif., and Christopher Butler of Concord, Calif., on Aug. 8, 2011, for federal narcotics offenses, civil rights violations, and extortion, United States Attorney Melinda Haag announced.
According to the indictment, Wielsch, 50, and Butler, 50, are alleged to have participated together in criminal activities made possible by Wielsch’s position as the commander of the Contra Costa County Narcotics Enforcement Team (CNET). The indictment alleges the following abuses of Wielsch’s position, in which Butler, a private investigator based in Concord, participated and assisted:

• Wielsch, aided and abetted by Butler, stole from county evidence facilities methamphetamine and marijuana that had been seized in CNET operations. Wielsch and Butler sold some of the stolen narcotics and intended to sell the remainder. The quantity of methamphetamine sold by Wielsch and Butler was sufficiently large to trigger a mandatory minimum term of 10 years’ imprisonment, if proven at trial.
• Wielsch and Butler participated together in a phony “sting” operation in which they falsely detained a person under the guise of a legitimate law enforcement operation, conducted warrantless searches, and kept narcotics that were taken from the person during the “sting.”
• Butler opened a massage parlor in Pleasant Hill, Calif., in which prostitution activities took place. He required the women working in the parlor to make weekly payments, which he shared with Wielsch, in exchange for Wielsch’s agreement to provide protection to the women from law enforcement action.
• Wielsch and Butler together conducted “stings” directed at prostitutes. Wielsch and Butler identified individuals they believed to be prostitutes through online advertisements and arranged meetings with them, typically in hotels. Wielsch and Butler then staged what purported to be legitimate sting operations, but instead of seizing evidence and citing the prostitutes, they unlawfully took the prostitutes’ money and property for themselves.

“This indictment alleges a pattern of lawlessness that not only violated the trust of the people of Contra Costa County, but also brings dishonor to all the fine men and women in law enforcement who work hard, do the right thing, and risk their lives every day protecting our communities,” U.S. Attorney Haag said. In May 2011, the Contra Costa County District Attorney asked the U.S. Attorney’s Office to lead the investigation. “The District Attorney’s Office led the initial investigation and did a thorough and professional job,” U.S. Attorney Haag said. “When the extent of the alleged misconduct became apparent, however, District Attorney Mark Peterson asked our office and the FBI to take the lead. We took that responsibility without hesitation.”
Wielsch and Butler were arrested this morning by agents of the Federal Bureau of Investigation, who have been investigating the case since May 2011.
The defendants’ initial appearance took place this morning in federal court in San Francisco; they are currently being held without bail pending detention hearings. Butler’s detention hearing is scheduled for Aug. 18, 2011, at 9:30 a.m. before Magistrate Judge Nathanael Cousins in San Francisco. Wielsch’s detention hearing is scheduled for Aug. 22, 2011, at 9:30 a.m. before Magistrate Judge Laurel Beeler in Oakland, Calif.
The maximum statutory penalties for each count are as follows, although any sentence imposed by the court following conviction would take into consideration the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553:
Count 1 – Narcotics Conspiracy, 21 U.S.C. § 846 (Wielsch and Butler)

• Life imprisonment (10-year mandatory minimum)
• Five years’ supervised release
• $10,000,000 fine
• $100 special assessment

Count 2 – Methamphetamine Distribution, 21 U.S.C. § 841(a)(1) (Wielsch and Butler)

• Life imprisonment (10-year mandatory minimum)
• Five years’ supervised release
• $10,000,000 fine
• $100 special assessment

Count 3 – Methamphetamine Distribution, 21 U.S.C. § 841(a)(1) (Butler)

• Life imprisonment (10-year mandatory minimum)
• Five years’ supervised release
• $10,000,000 fine
• $100 special assessment

Counts 4 through 9 – Marijuana Distribution, 21 U.S.C. § 841(a)(1) (Butler)

• Five years’ imprisonment (10-year mandatory minimum)
• Three years’ supervised release
• $10,000,000 fine
• $100 special assessment

Counts 10 through 13 – Theft From Programs Receiving Federal Funds, 18 U.S.C.m § 666(a)(1) (Wielsch)

• 10 years’ imprisonment
• Three years’ supervised release
• $250,000 fine
• $100 special assessment

Count 14 & 16 – Civil Rights Conspiracy, 18 U.S.C. § 241 (Wielsch and Butler)

• Life imprisonment
• Five years’ supervised release
• $250,000 fine
• $100 special assessment

Count 15 & 17 – Extortion, 18 U.S.C. § 1951 (Wielsch and Butler)

• 20 years’ imprisonment
• Five years’ supervised release
• $250,000 fine
• $100 special assessment

Hartley M.K. West and John Hemann are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Alycee Lane, Rania Ghawi, and Cristhian Escobar.  The prosecution is the result of an investigation by agents of the Federal Bureau of Investigation and the Contra Costa District Attorney’s Office.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Mr. Wielsch and Mr. Butler must be presumed innocent unless and until proven guilty.
Further Information:
CASE #: CR—11-0529-SBA
A copy of this press release may be found on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can.

This content has been reproduced from its original source.

Read More