May.11, 2010, 8:57 PM
In an unusual midtrial move, the judge in a federal fraud case involving Best Buy Co. Inc. said Tuesday that he'll decide whether to dismiss some of the charges against defendants Abby and Russell Cole.
The Deerfield, Ill., couple is accused of conspiracy, wire and mail fraud, money laundering and income tax evasion in a scheme in which their company, Chip Factory, was said to have illegally overcharged Best Buy $41 million for computer parts through an online auction.
Chief U.S. District Judge Michael Davis said he will hear arguments Monday in Minneapolis from the Coles' defense attorneys and the U.S. attorney's office, which brought the case.
Russell Cole's attorney, Andy Luger, asked the judge to drop fraud charges after the government's chief witness, former Best Buy manager Robert Paul Bossany, reversed his stance and said he did not cover up for Chip Factory's pricing practices.
Bossany pleaded guilty in 2009 to conspiracy and money laundering charges. He received a motorcycle, ATV and more than $100,000 in cash from Cole from 2003 to 2007.
"The essence of the case, as charged by the government, was a cover-up," Luger said.
"If the government is scheming to do something with respect to [price] variances, that's a different case," he said.
Assistant U.S. Attorney Nicole Engisch said the charges remain valid. "Mr. Cole knew what he was doing," she said.