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Ex-Delta employee sentenced for defrauding airline | Crime

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Ex-Delta employee sentenced for defrauding airline
Crime, News
Ex-Delta employee sentenced for defrauding airline

ATLANTA -- A former Delta Air Lines managerial employee will spend time in federal prison after pleading guilty to his part in a scheme to defraud the company.

Paul Anderson, 57, was sentenced to six years and eight months in prison, followed by three years of supervised release. He must also pay more than $36 million in restitution and forfeit his retirement accounts.

Prosecutors said Anderson and a co-defendant, 62-year-old Michael Yedor, submitted false invoices to Delta for work that was never performed. The invoices came from Airborne Voice and Data, a company Yedor claimed to own.

Anderson was hired by Northwest Airlines in 1979 and began defrauding the airline as early as 1999, according to investigators. Delta bought Northwest in 2008, and Anderson became a Minneapolis-based Delta employee a year later, when the two companies merged.

Prosecutors said Yedor sent the invoices to Anderson, who approved them for payment in exchange for a portion of the proceeds. Both defendants admitted they received more than $36 million from the two airlines.

Anderson was indicted last June and pleaded guilty Sept. 15, 2014, to conspiracy to commit mail fraud.

Yedor was sentenced Jan. 9 to 10 years in prison, followed by three years of supervised release. He was also ordered to pay $36 million in restitution and a personal money judgment of more than $36 million, and was forced to give up much of his property, including a yacht and a Beverly Hills mansion.

Crime, News