Ex-Executive Pleads Guilty to Mail Fraud

A former chief executive of a computer software distribution company has pleaded guilty to mail fraud for ordering employees to destroy merchandise and for claiming the inventory was damaged in the 1994 Northridge earthquake, U.S. Atty. Nora M. Manella said.

Irwin Bransky, the former head of Kenfil Distribution Inc., pleaded guilty Monday to two counts of an eight-count indictment for devising a scheme to collect $5 million from RLI Insurance Co., said Assistant U.S. Atty. Aaron Dyer, who handled the case.

Kenfil received $840,000 from the insurance company before the fraud was discovered, Dyer said.

Nelson Landman, the former vice president of the firm, pleaded guilty last week to one count of mail fraud, Dyer said.

Bransky, 47, of Encino, and Landman, 59, formerly of the city of Industry and now living in Scottsdale, Ariz., are both free on bond and awaiting sentencing on Sept. 19 by U.S. District Judge J. Spencer Letts, Dyer said.

Bransky faces a maximum sentence of 10 years in federal prison and a fine of up to $1.68 million, Dyer said, adding that the six remaining counts of the indictment against Bransky are still pending. Landman could serve five years and pay up to a $250,000 fine, he said.

Following the temblor, Bransky inspected Kenfil’s main warehouse at 16745 Saticoy St. to find computer software packages knocked from shelves, Dyer said.

Bransky and Landman coordinated the destruction of substantial amounts of software, Dyer said, by instructing as many as 40 warehouse employees to stomp on and bend packages and drive forklifts over them.

In addition, Bransky ordered employees to bring large quantities of outdated software from a second, uninsured warehouse in Van Nuys to the main warehouse, where it also was destroyed, Dyer said.

Bransky hoped to use the money from the insurance claim to pay off debts that accrued when the firm was unable to sell off to retailers, Dyer said.