Itasca men indicted on federal fraud charges
Two Itasca men were indicted Friday on federal fraud charges stemming from a billing and kickback scheme that prosecutors say bilked a Chicago-based international law firm out of almost $5 million.
Nicholas Demars, 57, was arrested Friday and indicted along with David Tresch, 51, who was charged in August.
Prosecutors charge that Demars, the former owner of a now-defunct information technology personnel outsourcing firm based out of his home, paid kickbacks to Tresch, who served as the law firm's chief information officer and oversaw the contract with Demars' firm. According to court papers, the pair are also accused of billing for work that was never performed.
The indictment seeks forfeiture of more than $4.8 million, the men's homes in Itasca, a condominium in Chicago and a residence in Lake Geneva, Wis. as well as several vehicles.
Prosecutors said Demars' firm was hired in 2004 and paid $7.68 million from that time through March 2011. They said $1.1 million was kicked back to Tresch from Demars. Eventually, prosecutors said, Demars began issuing checks to Tresch's wife and treating her as an employee even though she was not performing any work. She was not indicted.
Both men face up to 20 years in prison if convicted of the fraud charges.
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