North Creek A multi-million dollar fraud netted David Moro 10-and-a-half years in prison Oct. 5.
David Moro, a founding member of the Residents Committee to Protect the Adirondacks, now part of Protect the Adirondacks!, was ordered to pay restitution to defrauded lenders totaling $3,589,350.20 and to serve five years of supervised release following his prison term.
Moro stayed with family in North Creek while awaiting sentencing following his Nov. 2010 conviction on 33 counts, including; one count of conspiracy to commit mail and wire fraud, six counts of mail fraud, five counts of wire fraud, three counts of bank fraud, 17 counts of money laundering and one count of making false statements in a matter within the jurisdiction of the FBI and IRS.
From 2003 to 2005, Moro secured financing to lease broadcast equipment for Inchon, LLC, which was running the Russian Radio Network.
The equipment — high-end digital audio servers — was nonexistent, and old equipment was stickered with new serial numbers to pass scrutiny when lenders sent investigators to keep an eye on their investment. Moro claimed the servers boasted state-of-the-art software costing $10,000 each when the machines had software freely available online.
Money was laundered through Smart Function, LLC, which returned the equipment financing money back to Inchon an Moro. Smart Function was claimed to be the company selling servers to Inchon for its broadcasts. The laundered money was used to pay for unrelated business expenses and personal expenses including travel and gifts to family members.
Phony financial documents were presented to lenders by Moro showing Inchon as a highly profitable company, when it was largely dependent on the fraudulently-acquired funding from lenders.
Moro also presented false tax returns to lenders claiming an individual he represented was the full owner of Inchon though the person had no ownership of the company.