Reisterstown Businessman Wanted in $50M Fraud Scheme: U.S. Attorney

A Lutherville man who was reported missing has been charged with mail fraud in a $50 million telemarketing scheme, according to the U.S. Attorney for the District of Maryland.

Brian Keith Wallen, 52, is accused of operating a Reisterstown-based company that sold light bulbs and cleaning supplies at prices up to 8,000 percent above the suppler's prices, the U.S. Attorney alleged.

Between January 2010 and June 2014, the Federal Trade Commission received more than 500 complaints about the company, called Midway Industries, according to the U.S. Attorney, who claims Wallen scammed businesses and nonprofits out of $50 million and invoiced them for more than $100 million.

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Wallen allegedly set up various shell companies in Maryland and North Carolina that employed 100 people who were instructed to call businesses and nonprofits (including schools, churches and homeless shelters), act as though there was a preexisting business relationship and obtain information from an employee required to place an order, which was then shipped (whether it had been ordered or not) with allegedly exorbitant invoices, the affidavit says.

In one case, the affidavit states that Wallen's company billed a business $39.16 per light bulb versus the standard price of $3.49 per bulb.

When recipients tried to contact Wallen's companies to contest the invoices, they were routed to an answering service and the collections department.

The Federal Trade Commission filed a civil complaint in federal court alleging telemarketing and consumer fraud in July 2014, at which time Wallen's assets were frozen and operations ceased, the affidavit states.

A criminal complaint charging Wallen with mail fraud was filed on May 4 and unsealed on May 10, according to the U.S. Attorney.

Wallen faces up to 20 years in prison for the charges, according to the U.S. Attorney, who notes that a criminal complaint is not a finding of guilt.

Before the case could reach court, Wallen disappeared.

Police said that Wallen left a "goodbye" letter for his lawyer, who notified authorities on Thursday, April 28.

“We are asking for the public’s help in finding Brian Wallen,” said U.S. Attorney Rod J. Rosenstein. “Mr. Wallen reportedly left a note referencing his death, but law enforcement is still searching for him.”

Police located Wallen's silver Jeep near the Fire Trail by the Loch Raven Reservoir and conducted extensive searches of the area. The Jeep was locked and unoccupied when police came upon it, between Surrey and Old Bosley roads.

Authorities said they have found no trace of Wallen despite extensive searches around the reservoir by Baltimore County's tactical teams, K-9 unit, aviation, Baltimore Environmental Police and search dogs from Mason Dixon Rescue Dogs Inc. and Chesapeake Search Dogs.

Anyone with information is encouraged to contact the Baltimore County Police Department at 410-307-2020.

Pictured, Brian Wallen. Photo courtesy of the Baltimore County Police Department.

Help for Those Considering Suicide

If you or someone you know is considering suicide, there are resources to help.

The National Suicide Prevention Lifeline is available 24 hours a day at 1-800-SUICIDE (or 1-800-784-2433). Itswebsite offers services including a live chat.

The Baltimore County Crisis Response System is available at 410-931-2214, and the county offers this list of local support groups for caregivers.