Lawrence Rosenzweig of the Barridon Corporation has pleaded guilty today in a federal court to the charge of “wire fraud”, specifically of engaging in a scheme to defraud the financing company Presidential Financing Corporation.
The information filed on 26 September 2000 charged that in 1999 the Barridon Corporation, based in Hartford, entered into a factoring agreement with Presidential. The agreement was negotiated by Presidential’s northeast regional office, located in Rockland, Massachussetts. Under this agreement, Barridon was allowed to borrow from Presidential funds equal to 80% of Barridon’s outstanding account receivables and Barridon was also allowed access to immediate cash (rather than waiting for payment from its customers).
