New York man second to plead guilty in billing fraud for commercial drum sales in Harford

Tony Roberts, The Aegis, Bel Air, Md.
·2 min read

Nov. 3—Robert DiNoto, 48, of Huntington, New York, pleaded guilty Wednesday for his role in a fraudulent multimillion-dollar billing scheme involving a manufacturing company with facilities in Harford County. DiNoto and his brother Eugene DiNoto submitted false invoices to Maryland manufacturers for undelivered commercial drum containers.

Robert DiNoto is owner and president of American Pride Distributors in Woodbury, New York, according to the Maryland State's Attorney's Office. American Pride sold commercial drum containers used by manufacturers to store and transport products. Eugene DiNoto was a longtime employee of a family-owned drum business that did business in Harford, the Maryland State's Attorney's Office said.

Around 2014, the brothers began execute a fraudulent billing scheme to defraud Eugene DiNoto's employer through the submission of false invoices for undelivered drums.

As the facility manager for his employer, Eugene oversaw the purchasing and storing of drums for use at the Harford County manufacturing facilities; he had the authority to review drum invoices and authorize payments to the drum vendors, the Maryland State's Attorney's Office said.

According to the Maryland State's Attorney's Office, Eugene DiNoto subsequently told his brother about other drum vendors that were defrauding his employer using a fraudulent billing scheme. Robert Di Noto, who was in the real estate business at the time, decided to use a company he owned, Sandpiper Properties, Inc., trading as American Pride Distributors, to facilitate the fraud scheme.

The Morning Sun

Between December 2016 and August 2019, Robert DiNoto used American Pride's invoices to bill and receive a total of $257,181 from his brother's employer for nonexistent drum deliveries, according to the Maryland State's Attorney's Office. Robert DiNoto used the money from the fraudulent billings for personal expenses, including to pay his credit card bills, the Maryland State's Attorney's Office said.

Robert DiNoto faces a maximum sentence of 20 years in prison for conspiracy to commit wire fraud. He will also be required to forfeit and pay restitution in the full amount of the loss, $257,181. His sentencing hearing is scheduled for March 21, 2023.

Eugene DiNoto previously pleaded guilty to conspiracy to commit wire fraud, engaging in an illegal monetary transaction, and filing a false tax return, in connection with schemes that defrauded his employer of more than $29 million. He is awaiting sentencing.