United States of America v. Barry Cummings

Kansas City, Kansas criminal defense lawyer represented the Defendant charged with one count of mail fraud. abusing incentive rewards program

Overland Park man sentenced for abusing incentive rewards program

A Kansas man was sentenced to 15 months in prison for causing a $1.2 million loss to a company by submitting false invoices in connection a performance incentive rewards program.



According to court documents, Barry Cummings, 52, of Overland Park, pleaded guilty to one count of mail fraud.



An energy management company offered a performance-based rewards program as an incentive to non-employee resellers, contractors, and others to sell its products. Participants submitted information regarding sales to earn points they could then redeem for items like airline vouchers, hotel stays, gift cards, and electronic devices.



In 2017, a business in Lenexa, Kansas, hired Cummings, and he enrolled in the victim company's rewards program through that affiliation. In his plea agreement, Cummings admitted to orchestrating a years-long scheme to defraud the victim company's rewards program. Cummings admitted to logging into the rewards site and submitting fraudulent sales claims, which falsely represented that he had sold the company's products. Cummings admitted that he never sold a single one of the company's products despite the thousands of sales claims he submitted representing that he did.



After his termination from the Lenexa business in April 2018, Cummings continually logged into the rewards website to submit fraudulent invoices and redeem points, using the email he previously had at the Lenexa business. As an example, during a 12-hour period in November 2018, Cummings submitted 834 fraudulent invoices for which he received more than 2.8 million points. In 2019, he submitted 5,543 false claims for 22.5 million points. Cummings used point redemptions to receive more than 2,000 rewards at a value that caused a $1,233,024 loss to the victim company.



The Federal Bureau of Investigation (FBI) investigated the case. The victim energy company cooperated and provided invaluable assistance in the investigation.



Assistant U.S. Attorney Ryan Huschka prosecuted the case.