STRATEGIC PARTNERS
December 10, 2001
PITTSBURGH -- Barry Chesla, the former owner of the now-defunct Tri-State Armored Services, faces a maximum sentence of 25 years in prison and $250,000 in fines when he is sentenced on Dec. 7 for his role in a money laundering scheme.
Chesla pleaded guilty to money laundering and income-tax evasion before U.S. District Court Judge Robert Cindrich in Pittsburgh. Federal authorities say he will likely receive less than eight years in prison since he is a first-time offender.
Federal and state authorities conducted a three-year investigation into Tri-State. He and other executives of the company, based in Hammonton, N.J., have been accused in bankruptcy-court papers of stealing up to $50 million from vaults and ATMs the company serviced.
Chesla is named along with Tri-State's other owners, William Mottin, 45, of Sewell, N.J. and Daniel Feuker, 43, of Atlantic City. All three have pleaded guilty to the charges.
Tri-State, which had offices in New Jersey, Pennsylvania, Maryland and Connecticut, serviced more than 3,000 East Coast ATMs owned by financial institutions.
The company ceased operations March 1 and declared bankruptcy the next day.
Cincinnati-based Great American Insurance Co. alleged that $40 million to $50 million was stolen in repeated thefts of ATMs and vaults where Tri-State stored cash for customers.
Authorities say that in addition to the company's thefts, Chesla stole money on his own. In court, Chesla's attorney disputed the $3.77 million amount the U.S. attorney's office claimed his client received.
Under his plea agreement, Chesla forfeited numerous properties in Pennsylvania, Connecticut, Maryland and New Jersey, including several luxury cars.
As for the tax-evasion charge, Assistant U.S. Attorney Dennis Kissane said Chesla reported earning $36,478 on his federal income-tax return in 1998, when his taxable income that year was $952,978.
