United States Attorney Mary Beth Buchanan announced today, July 7, 2008, that a Pittsburgh man has pleaded guilty in federal court to a one-count Indictment charging him with wire fraud.

David Bagdy, age 51, pleaded guilty to the charge before United States District Judge David S. Cercone.

According to the information presented to the Court at the time of the plea by Assistant United States Attorney Shaun Sweeney, between August of 2003 and December of 2004, Bagdy worked out of his residence in Pittsburgh as a sales consultant for a lumber company known as North Star Forest Products, based in Cleveland, Ohio.  Bagdy's job required him to make purchases of lumber from a Russian company known as Waldex-Onego, which lumber would be paid for by North Star Forest Products.  However, Bagdy fraudulently overstated the amounts which North Star Forest Products owed to Waldex-Onego, resulting in overpayments by North Star Forest Products to Waldex-Onego.  Bagdy had an arrangement with an employee of Waldex-Onego whereby the employee and Bagdy would split the excess money paid by North Star Forest Products to Waldex-Onego.  On approximately eighteen occasions between July of 2003 and December of 2004, the employee of Waldex-Onego wired approximately $500,000 from a Russian bank to Bagdy as part of that scheme.

Judge Cercone scheduled sentencing for October 17, 2008 at 10:00 a.m.  Bagdy faces a maximum sentence of twenty (20) years in prison, a fine of $250,000, or both.  Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.  Bagdy remains free on bond pending sentencing.

The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Bagdy.