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Manager Accused Of $1 Million Fraud

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By JOSH POLTILOVE The Tampa Tribunes

Published: January 18, 2008

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. 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 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 saw evidence of four fictitious companies: TLSmith Inc., Environmental Technology, REP Med Services and Ten-E Packaging Services.

•TLSmith Inc. 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 onramp to the Lee Roy Selmon Expressway is 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 on County Road 74 in Newport, Minn.

Baxter said Smith wrote invoices each month for three businesses.

"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."

Efforts to reach Smith were unsuccessful.

Gary Samuels, a Quest spokesman based in Madison, N.J., said the medical laboratory would be unable to comment since the case is ongoing.

"We're fully cooperating with the local law enforcement officials as they continue to investigate the case," he said.

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

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

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