WHEATON – DuPage County State’s Attorney Joe Birkett announced that a DuPage County Grand Jury yesterday returned a sixteen-count indictment against Scott G. Franz, 52 (d.o.b. 8/20/1956) of 8705 Fernald Avenue, Morton Grove charging him with three counts of Mail Fraud, three counts of Forgery, three counts of Conspiracy to Commit Theft by Deception, one count of Financial Institution Fraud, and six counts of Wire Fraud.  Three of the counts stem from business dealings Franz had with the DuPage County Department of Public Works.

According to the indictment, Franz, and his business, Arbor Green, Ltd. out of Glenview, established a receivable line of credit with Metro Federal Credit (MFC) located in Arlington Heights.  As part of their business arrangement, MFC would extend a line of credit to Arbor Green for up to 75% of the dollar amount of invoices that Arbor Green submitted to MFC.  MFC would then collect the entire amount of the invoice from the company that issued the invoice, keeping 75% to cover the money advanced to Arbor Green plus a handling fee.  MFC would then pay Arbor Green the remainder of the invoice amount.  The indictment however, alleges that Arbor Green would inflate the invoices sent to MFC so as to obtain more money from the company.  Three of the inflated invoices were associated with work that Arbor Green completed for DuPage County totaling more than $105,000.  The alleged theft occurred between March and December, 2006.

“The case against Mr. Franz marks the second time in less than one week that my office has filed charges involving white collar crimes,” remarked Birkett.  “Mr. Franz allegedly attempted to line his pockets at taxpayers’ expense.  I would like to point out that DuPage County is not out any money at the expense of Mr. Franz’s alleged actions.  I would also like to thank Cory Kohut of DuPage County’s Stormwater Management Division who uncovered this scheme.”

Judge Daniel Guerin has issued a $400,000 bench warrant with 10% to apply for Franz who is not currently in custody.

Members of the public are reminded that a complaint contains only charges and is not proof of a defendant’s guilt.  A defendant is presumed innocent and is entitled to a fair trial in which it is the government’s burden to prove his or her guilt beyond a reasonable doubt.

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