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Former Quest Manager Accused Of Fraud

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A TBO.com staff report

Published: January 17, 2008

Updated: 01/17/2008 03:26 pm

TAMPA A Wesley Chapel man is accused of bilking his former company, Quest Diagnostics, out of nearly $1.2 million.

David Smith, 47, has turned himself in to Tampa police and the U.S. Secret Service.

As Quest's facilities manager, Smith was responsible for approving vendor invoices and submitting them to the corporate office for payment. But he submitted invoices for payment on behalf of fictitious companies, police Detective Robert Baxter said.

Smith has stolen $1,187,379 since January 2001, the detective said.

"The underlying scheme involved was very creative, and to carry it off for six years was amazing," Baxter said.

Quest Diagnostics, 4225 E. Fowler Ave., fired Smith in September after discovering he had forged his supervisor's name on an expense report, Baxter said. Quest began an investigation and discovered the invoices made out to phony companies.

Quest's research included records going back to January 2001.

Baxter began investigating Smith and the fictitious companies, compiling invoices and bank records.

Baxter learned the embezzlement began or was in progress by January 2001. He saw evidence of four fictitious companies: TLSmith Incorporated, Environmental Technology, REP Med Services and TEN-E Packaging Services.

TLSmith Incorporated was operated out of a Tampa post office box rented by Smith, Baxter said. Smith's wife's initials are T.L.

Environmental Technology was listed as being at 1404 Cleveland St. in Tampa. There's no such business at 1404 E. Cleveland St., and the on-ramp to the Lee Roy Selmon Expressway is located where 1404 W. Cleveland St. would be, Baxter said.

Baxter didn't travel to 300 Old Roosevelt Blvd. in St. Petersburg, the location listed for REP Med Services. But he said his research showed the company doesn't exist.

TEN-E Packaging Services was listed at 1666 County Road 74 in Jacksonville. A company called TEN-E Packaging Services exists, Baxter said, but it's located on County Road 74 in Newport, Minn.

Baxter said Smith wrote invoices each month for the three fake businesses where he listed a street addresses.

"He would reflect in his expense report that he had paid those invoices himself, which I guess was not totally uncommon for that company," Baxter said. "He'd send an expense report, and Quest would pay it."

Because the case relied upon mail and wire fraud, Baxter presented the case to an assistant U.S. attorney's office, Tampa police say. The case was submitted to a federal grand jury.

Smith, of 6143 Bridleford Drive, was indicted on eight counts of mail and wire fraud. He is in the custody of the U.S. Marshal's Service.

Smith turned himself in to authorities on Tuesday – the same day the indictment was unsealed, Baxter said. He is out on bond and has his next court appearance in February.

TBO.com producer Beth Gaddis contributed to this report. Reporter Josh Poltilove can be reached at jpoltilove@tampatrib.com or (813) 259-7691.

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