Aurora business owner sentenced for $30 Million fraud schemes

Local News
Make It Count

AURORA, Mo. — A man from Aurora is sentenced to eight years in prison without parole due to a series of fraud schemes totaling to over $30 million.

“This white-collar thief maintained his lavish lifestyle by stealing millions of dollars from his clients, partners, and lenders to build expensive homes, buy luxurious cars, and take numerous vacations,” said Tim Garrison, a U.S. attorney. “This theft occurred not once or twice, but repeatedly over several years through a series of fraud schemes.”

Russell Grundy, 51, of Hilton Head Island, South Carolina, formerly of Aurora, was sentenced by U.S. District Judge Stephen R. Bough and ordered to pay $14,847,451 in restitution to his victims.

“The elaborate multi-million dollar fraud schemes and false information provided on numerous documents by Mr. Grundy resulted in significant harm to his business partner, a significant client and multiple financial institutions, all of which violate the public trust,” said Adam Steiner, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office. “Today’s sentence demonstrates the government’s determination to restore and ensure that trust. Moreover, IRS Criminal Investigation, along with law enforcement partners and the U.S. Attorney’s Office, will continue to identify, investigate, and prosecute individuals like Mr. Grundy.”

Grundy owned several companies that focused on advanced technologies. Those companies were Innovative Objects, LLC, PILR Technology, LLC, Choice Technologies, LLC, Wyerless, LLC, and Audio Input, LLC.

The frauds committed by Grundy’s companies defrauded financial institutions and former clients including Land O’ Lakes.

Land O’ Lakes hired Innovative Objects to create technology to inventory, track and coordinate the shipping of products. Grundy told Land O’ Lakes third party programs were built into the software, and required payments for the third parties. However, there was no third party and the payments, totaling up to $1.8 million, were kept by Grundy for personal use.

Grundy also got a company called Miami Nations Enterprise to transfer a total of $8,010,000

Copyright 2020 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Local Sports

More Local Sports

World News

More World News
Make It Count

Trending Stories

Washington DC Bureau

Washington DC Bureau

Newsfeed Now

More Newsfeed Now