2 Pennsylvania men charged with falsely billing UPenn

PHILADELPHIA – Two Pennsylvania men were charged May 26 with a scheme to defraud the University of Pennsylvania after an investigation led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

Kenneth Kapikian, 57, of Wayne, Pennsylvania, and Dennis Gagliardi, 60, of Chester Springs, Pennsylvania, were each charged with seven counts of wire fraud and one count of conspiracy to commit money laundering.

According to the information, the defendants engaged in a scheme to fraudulently obtain money from the university by falsely billing it for services the defendants never provided to the Sheraton University City Hotel. The information further alleges the defendants directed vendors of the Sheraton University City Hotel to inflate their invoices submitted to the hotel and then pay them the fraudulently inflated amounts as kickbacks.

If convicted, each defendant faces a maximum possible sentence of 160 years in prison, a three-year period of supervised release, a fine of up to $500,000, and an $800 special assessment.

The case is being prosecuted by Assistant U.S. Attorney Melanie Babb Wilmoth.

An information is an accusation. A defendant is presumed innocent unless and until proven guilty.