Otto Biltres, president and owner of Biltres Staffing, was sentenced today to a term of 121 months for wire fraud and identity theft crimes perpetrated against TemPay Inc., his payroll funding company.
The following were taken from his judgment and sentencing documents:
The Need to Provide Restitution
The Rule agreement in this case provides that Mr. Biltres will make restitution to the victim, TempPay. Although it is likely he will never be able to pay TempPay their entire monies owed, Mr. Biltres agreed to pay restitution in the plea agreement. As the Court knows from its experience, it is highly unusual for defendants to ever pay restitution in full, let alone immediately on the date of sentencing. This is another reason as to why this Honorable Court should sentence Mr. Biltres to a significantly reduced prison sentence.
The Nature and the Circumstances of the Offense.
In March of 2008, Mr. Biltres had his business enter into a factoring agreement with TempPay, Inc. out of Ohio. Mr. Biltres would submit false invoices to TempPay for Biltres Staffing recruits that were supposedly working for four different businesses. Mr. Biltres would utilize the fraudulent invoices to obtain payment from TempPay, then in Case 8:13-cr-00503-SDM-EAJ Document 31 Filed 04/11/14 Page 3 of 8 PageID 66 turn would pay the earlier invoices to TempPay with the proceeds obtained through later fraudulent invoices. The scheme utilized by Mr. Biltres was not a complex one, but rather of a pyramid type scheme that utilized TempPay’s monies to pay for earlier invoices submitted. The nature and the circumstances of the offense are somewhat unusual in that it did not take a highly intelligent individual to organize the plan utilized by Mr. Biltres, but rather it was a simple plan.