Thursday, November 06, 2008
Dina Wein-Reis bilked $100 million from several Fortune 500 companies. The 44-year-old mother of three boys allegedly set up shell companies to buy goods from consumer products companies at a discount, claiming to sell them to charities, but instead, she sold them at higher prices to retailers.
Roche Diagnostics Corporation filed suit against Dina Wein-Reis and her three compatriots for buying "nearly $12 million worth of diabetes care products at a steep discount" that was meant to be used to build its customer base among pharmacies and other potential customers. Consumer products manufacturers often sell goods at a substantial discount to humanitarian organizations for public relations purposes, which she took advantage of.
However, using company fronts like On-Call, The Complete Solution, Sion Enterprises, and CMB Management, Dina Wein-Reis tried to sell the diabetes medication to Walgreens, which flagged the sale as suspicious. Repeating this basic process over the course of eight years, she was able to amass a $100 million fortune, including a $35 million art collection and seven homes.
If convicted of charges of wire fraud and conspiracy to commit wire fraud, Dina Wein-Reis could face 17.5 years in jail. She is currently free on a $10 million bond and the three homes that her relatives have put up. Judging from her expression in her photo below, she isn't too worried.
Dina Wein-Reis Photos