2 Arrested, 3 Charged in Invoice Scheme

Two San Fernando Valley residents have been arrested and three others charged with bilking companies out of $50,000 by sending them false invoices for teletypewriter ribbons they never ordered.

Earl William Sutherland III, 41, of Van Nuys and Maria Brockway, 44, of Reseda were arrested at their residences by federal investigators for wire and mail fraud, said Assistant U.S. Atty. John Walsh. They were later released from federal custody on $25,000 bond each, Walsh said.

Sutherland and Brockway were named in a 33-count indictment handed down in U.S. District Court on Wednesday after a five-year investigation, Walsh said. Also named were George Peter MacQueen, 42, of North Hollywood, Katherine Alexander, 35, of Encino and Jeffrey Seemayer, 31, of Ventura.

Between January and March, 1984, the five suspects allegedly made calls to various companies around the country, obtained the name of their telex operators, the type of machines used and a mailing address, Walsh said. The five then sent each company a $138.35 invoice for a box of telex ribbons, although no order had been placed, Walsh said. The ribbons were never delivered, he said.

$1 Million in Invoices

During the three-month operation, the five allegedly sent out $1 million in invoices to 4,000 businesses, taking in about $50,000 before investigators shut the operation down, Walsh said.

U.S. postal inspectors uncovered the scheme while investigating complaints against the now defunct U.S. Telex Corp., formerly owned by Sutherland and where the other four suspects were employed, Walsh said.

Arrest warrants have been issued for MacQueen and Seemayer, Walsh said. A notice to appear for arraignment will be sent to Alexander, who authorities did not believe was a flight risk. Arraignment for all five suspects is scheduled in U.S. District Court on Jan. 23, Walsh said.