Fraud suspect denies bilking Christian school [Milwaukee Journal Sentinel]

Mar. 13--After being charged with fraud in a Florida case, two-time felon Richard Incandela says he hopes to prove soon that he does not owe any money to a Wisconsin Christian school that claims he defrauded it.

The two cases are unrelated except that both involve the 57-year-old Incandela and allegations that premium payments he received on policies did not make it to the insurance companies.

In Florida, he was arrested in February and charged this month with four felony counts involving an elderly couple who paid him nearly $500,000. Incandela has pleaded not guilty; he is scheduled to be arraigned March 23.

In Wisconsin, officials at the financially struggling Heritage Christian Schools say Incandela repaid it about $1 million. But Mark Garsombke, the Heritage board member leading the internal investigation, said Incandela still owes the school at least $300,000. Garsombke predicted that the amount Incandela owes will turn out to be "well in excess of $300,000" when internal investigations are complete.

The Journal Sentinel in January profiled Incandela's dealings with Heritage. Incandela's financial plan -- which was pitched to parents in 2004 -- included trying to build the school's budget by making it the beneficiary on life insurance policies sold on employees and others with links to the school. Some of the policies were to be sold to investors in deals known as life settlements to provide Heritage with immediate cash.

Garsombke said the school paid Incandela more than $1.5 million to cover insurance premiums. Incandela paid some of the money back after Heritage discovered that much of the money was not paid to insurance companies, Garsombke said. Incandela stopped making payments to the school last year.

Incandela said he did nothing wrong in the transactions with Heritage and that he recently hired a Florida forensic accountant to go over his records in hopes of convincing the school that he does not owe it any more money. Incandela, who in 1993 was sentenced to six years after an Illinois fraud conviction, predicted his accountant's study would show he has overpaid Heritage.

Incandela said he has not yet met with leaders of Heritage, which has schools in the Town of Brookfield and West Allis.

"Given the cantankerous nature, if I walked in and said (the amount owed) was 'x,' I doubt they would believe me," Incandela said. "They're going to see red."

Garsombke agreed.

"I wouldn't give any weight to what Incandela says," Garsombke said, noting he has met with state and federal law enforcement officials. "We're not dealing with him."

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