Douglas Worman, 64, from Coeur d’Alene, was sentenced to 46 months in federal prison after being convicted of defrauding J.S. Richards Forestry Management of over $2.5 million.
A federal jury found Worman guilty of 17 counts of wire fraud related to a factoring scheme, in which he submitted fraudulent invoices for work that was never done. The invoices were inflated and fictitious, leading to the fraudulent transfer of funds from J.S. Richards Forestry Management between 2015 and 2018.
Worman operated Worman Forest Management, which entered a factoring agreement with J.S. Richards to sell accounts receivable at a discount in exchange for immediate funding.
However, Worman exploited this arrangement by submitting false invoices for nonexistent work, ultimately securing over $2 million in fraudulent funds between June and September 2018.
U.S. Attorney Josh Hurwit emphasized that the case underscores the government’s commitment to holding business fraudsters accountable.
Along with a prison sentence, Worman was sentenced to three years of supervised release and ordered to pay restitution, with the final amount to be determined. The investigation was conducted by the FBI, with Assistant U.S. Attorneys Brittney Campbell and Sean Mazorol handling the prosecution.