Man uses shell company to scam employer

FREEDOM, N.Y. (WIVB) - An Allegany County man who was director of operations for Ziphany Company has admitted running a scam to defraud the company.

Nicholas Polcz, 34, of Freedom pleaded guilty to federal charges of mail fraud on Friday. Prosecutors say while working at Ziphany in April of 2010, Polcz created a shell company that had no employees and provided no services called "EXUO Communications." He then told his employer that EXUO would provide wireless services instead of their current provider, while simultaneously directing the current provider to forward all future bills for services to EXUO.

Using this scheme, Polcz was able to charge Ziphany a higher amount than the wireless services cost, paying the provider and keeping the extra for himself. In all, prosecutors say he scammed the company out of $28,000.

When he is sentenced in November, Polcz could face a maximum of 20 years behind bars, a fine of $250,000, or both.