Former Bend business owner swindled customers out of more than $880k
PORTLAND, Ore. (KOIN) — A man who previously owned a Bend-based microbrewery equipment company has been sentenced for swindling customers out of more than $880,000.
A judge sentenced Matthew Mulder to 21 months in prison and three years of supervised release on Tuesday, the U.S. Attorney’s Office for the District of Oregon reported. The 52-year-old man must also pay his victims $887,116 in restitution.
Mulder started selling custom-built microbrewery systems, keg washers and other industrial brewing products through his company We Can Brewing Systems in 2014. But according to officials, the business owner sought and accepted orders he knew he couldn’t fulfill — starting in at least January 2017 and lasting through June 2018.
The Attorney’s Office alleged Mulder would lie to customers who asked about their purchases, telling them their orders were on schedule or were nearly fulfilled. The office also said he would push customers to submit additional payments by sending them photos of other orders that were almost completed.
Officials additionally reported Mulder sent customers “fake invoices for shipping costs,” and they received nothing from him after submitting the payments.
“During the fraud, Mulder solicited and accepted new customer contracts requiring large down payments that he would in-turn use for personal expenses, to pay off loans, and to pay suppliers,” USAO added.
Overall, investigators found that Mulder intentionally and knowingly defrauded 23 customers. He was initially indicted for seven counts of wire and mail fraud on Feb. 19, 2020. He pleaded guilty on Apr. 3 of this year.