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GlobeTel's Auditors Reviewed Copies of Invoices and CDRs Provided by Monterosso and Vargas
91.
In order to audit GlobeTel for 2004 and 2005, the company's independent auditors reviewed the false invoices and CDRs provided to GlobeTel by Monterosso or Vargas. The auditors compared a sample of the CDRs to corresponding invoices to confirm that they substantiated the revenue claimed in the invoices.
92.
Monterosso and Vargas knew that GlobeTel's auditors had specifically requested CDRs so they could compare them to the invoices and conh that Volta, Lonestar and Centerline actually bought and sold the telewm "minutes" claimed. Monterosso and Vargas knew that the invoices and CDRs they provided did not actually record transactions by Volta, Lonestar or Centerline and that GlobeTel's independent auditors would rely upon the invoices and CDRs concerning the "off-net" revenue of Centerline in connection with the 2004 and 2005 audits. Because the invoices and CDRs concerning Centerline's "off-net" revenue were false, GlobeTel's representations to its independent auditors concerning the amount of its revenue were materially false and misleading.
93.
Monterosso and Vargas knew that the fake invoices and CDRs relating to Centerline's "off-net" revenue would be presented to GlobeTel's independent auditors. Therefore, Monterosso and Vargas made, or caused GlobeTel to make, materially false and misleading statements to its independent auditors in connection with the 2004 and 2005 audits.
VII. MONTEROSSO AND VARGAS BENEFITED FROM THEIR FRAUDULENT SCHEME
94.
Monterosso and Vargas directly benefited from their fraudulent scheme to create fictitious "off-net" revenue for Centerline and its wholly owned subsidiaries.
