Xerox Alleges Fraudulent Lease Scheme Against Premier Copier

Xerox Alleges Fraudulent Lease Scheme Against Premier Copier

Xerox Financial Services LLC has taken Colorado-based Premier Copier, Inc. and two of its executives to federal court, alleging a wide-ranging scheme of fraud, misrepresentation, and unfair trade practices. The lawsuit, which seeks more than $1.8 million (€1.53 million) in damages, was originally filed in Connecticut Superior Court but has since been moved to the U.S. District Court for the District of Connecticut.

The defendants named in the complaint are Premier Copier, along with executives Mark D. Klenin and Tod R. North. According to Xerox, the trio engaged in deceptive conduct that included creating fictitious or inflated equipment lease agreements for office copiers and related technology. In some instances, the equipment allegedly never existed or was misrepresented, allowing Premier Copier to collect payments and commissions from Xerox under false pretenses.

Xerox further contends that the scheme was reinforced by illegal kickbacks, although the public filings do not yet reveal who received them. The complaint lists claims of fraud, breach of contract, unjust enrichment, civil theft, and violations of Connecticut’s Unfair Trade Practices Act, as well as principles against kickbacks. Xerox argues that the conduct not only caused it direct financial losses but also posed risks to broader leasing practices and internal controls in the industry.

Premier Copier has denied wrongdoing and moved the case into federal jurisdiction, with its defense led by Boston-based attorney Wm. Tucker Griffith of Lathrop GPM. The company maintains the dispute properly belongs in federal court due to the parties’ diverse locations and the amount in controversy.

As of now, the defendants have not filed a detailed response, and no criminal charges have been reported.

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