Federal briefs for February 4, 2005

Friday, Feb. 4, 2005 | 11:07 a.m.

Ex-Skipco president facing felony counts

The former president of Skipco Inc. is facing 35 federal felony counts of wire fraud and money laundering in connection with a scheme to defraud the Nevada office machine company of more than $12 million.

Gary Harouff, 41, of Las Vegas, was indicted Wednesday and is alleged to have caused Skipco's financing company to divert lease commissions to new companies that he owned.

Harouff, who became president of Skipco in 1996 after Toshiba American Business Solutions Inc. purchased the company from Harouff's parents, allegedly instructed Skipco's financing company to mail and wire transfer commissions to Harouff's privately owned companies.

From November 1996 through October 2001 Harouff allegedly caused more than $9 million in lease commissions to be diverted, and negotiated more than $3.4 million in checks for his personal benefit, according to the indictment.

Harouff, who faces up to 20 years in prison and a $250,000 fine on the wire charge counts and up to 10 years in prison and a $250,000 fine on the money laundering counts, is scheduled to be arraigned Tuesday in federal court.

Lorren Stiles, the former vice president of Skipco, has pleaded guilty to one count of wire fraud in connection with the case and is scheduled to be sentenced later this month.

Space wargames begin Saturday

Nellis Air Force Base will host the third space wargame simulation beginning Saturday and running through Tuesday.

The base has previously hosted the wargames that are designed to test the future integration of space assets and new technologies in future warfighting.

About 250 military and civilian experts from more than 20 government agencies will be on hand for the Schriever III wargame, Nellis officials said.