Former Paragon Client Convicted of Factoring Fraud and Sentenced to 21 Months for Grand Theft

Former Paragon Client Convicted of Factoring FraudIn 2009 when the economy got tough, many businesses were tightening their belts as sales decreased. A former Paragon client, Innovative Staffing, who provided temporary help and labor services and had been with them for about 10 years decided to take a different route. Paula Patak, from Fort Lauderdale, FL, decided to submit inflated and fictitious invoices to make up for her decreased sales. Paragon first realized there was a problem when a certified cashier’s check came in to pay some factored invoices. This is a red flag since companies do not typically pay in this manner and Paragon realized the payment was sent by the client, not their factored customer.

It is very hard to get white collar fraud prosecuted due in part to the heavy workload put on the authorities and prosecutors who often perceive factoring fraud as a civil matter. Upon uncovering the fraud and the client admitting to it, Paragon contacted the Ft. Lauderdale Police Department. They were very receptive, understanding, and appreciated all the work Paragon did to present the fraud to them in an understandable manner. Due to the overwhelming evidence, Paula Patak pleads guilty to grand theft and was sentenced to 21 months in prison and 10 years probation on March 22, 2012.

“We would like to thank the Fort Lauderdale Police Department, particularly Detective Amy Hoover-Shoemaker in the Economic Crimes Unit, and Broward County Prosecutor Kerry Fleck for their hard work and successful prosecution of Paula Patak,” says Jon Anselma, Managing Partner of Paragon. “Let this be a warning to others contemplating committing a fraud in factoring, crime does not pay!”

Jon Anselma
Managing Partner

Paragon Financial Group, Inc.

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