United States Attorney's Office District of Connecticut
Press Release

FORMER CEO OF EASTERN COLOR PRINTING WHO FAILED TO REPORT CHECK KITING SCHEME IS SENTENCED

Kevin J. O'Connor, United States Attorney for the District of Connecticut, announced that A. ROBERT PALMER, age 66, of 70 Daventry Hill Road in Avon, Connecticut, was sentenced today by Senior United States District Judge Peter C. Dorsey on his conviction for misprision of a felony. In proceedings this morning in New Haven, Judge Dorsey sentenced PALMER to five years of probation, the first three months of which he must spend confined to his home. Judge Dorsey further ordered that PALMER complete 208 hours of community service at a rate of four hours per week over the next year. PALMER must also pay restitution to Fleet Bank in the amount of $684,462, which Judge Dorsey ordered him to pay at a rate of $200 per month during the course of his probation.

On March 2, 2004, PALMER, the former Chief Executive Officer of Eastern Color Printing, a commercial printing company located in Avon, Connecticut, pleaded guilty to a one-count Information, admitting that in February 2002, he was aware of, but failed to report to law enforcement, a check kiting scheme being perpetrated by David T. Lackenby, the company's chief financial officer. In particular, PALMER acknowledged that he knew that thousands of worthless Eastern Color Printing checks were being exchanged between the company's operating and draft accounts at Fleet Bank, and that the balance in those accounts was not sufficient to cover the face value of the checks. PALMER also acknowledged that in February 2002, he attempted to conceal the offense by delaying financial auditors from gaining access to the company's books and records, and that he did not notify law enforcement as soon as he became aware of the crime. Fleet Bank sustained loses of approximately $2.2 million as a result of the scheme.

Lackenby pleaded guilty to mail fraud on December 8, 2003, and is currently scheduled to be sentenced by Judge Dorsey on June 29, 2004, at 9:00 am.

This case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. The case is being prosecuted by Supervisory Assistant United States Attorney Ronald S. Apter.

CONTACT:

U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
thomas.carson@usdoj.gov