El Paso millionaire sentenced to 10 years in prison for coupon fraud scheme
El Paso millionaire Thomas “Chris” Balsiger, 63, has been sentenced to 10 years in prison and ordered to pay $65 million in restitution for a $250 million coupon clearinghouse fraud scheme the court said “shook the coupon industry.”
Balsiger is the former CEO of International Outsourcing Services (IOS) in El Paso, the nation’s largest coupon clearinghouse.
He was found guilty in December of 10 counts of wire fraud, one count of wire fraud conspiracy and one count of conspiring to obstruct justice. The case dates back to 2007.
Balsiger had requested probation, which the judge found to be “totally inappropriate.”
Senior United States District Court Judge Charles N. Clevert said he had never seen a more sophisticated fraud scheme in his 20 years as a judge.
He called Balsiger a “chameleon” and “Dr. Jekyll and Mr. Hyde,” pointing out he was involved in the El Paso community while also orchestrating the wide-ranging fraud scheme and directing a relentless effort to obstruct justice.
Clevert said Balsiger provided and directed others to provide false information to law enforcement and grand jury subpoena recipients, coached witnesses to lie, sought to intimidate and prevent witnesses from communicating with law enforcement, falsely blamed cooperating witnesses for his criminal conduct and perjured himself at trial.
The investigation that led to Balsiger’s prosecution and eventual conviction stemmed from a single Milwaukee store owner contacting law enforcement to report that someone had offered her money to use her store’s name to submit fraudulent coupons.
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“The FBI remains committed to protecting Americans from fraudulent schemes that affect every day life,” FBI Special Agent in Charge Justin Tomoleo said after the sentencing. “The widespread grocery coupon fraud, perpetrated by Mr. Balsiger and others, cost our community millions of dollars. We expect this sentencing to serve as a warning to any future offenders looking to defraud the American people.”
ABC-7 has reached out to Balsiger’s El Paso attorney, John Leeper, for comment, but have not heard back from him. His office indicated he was traveling back from Wisconsin on Tuesday.
“We’re extremely grateful for the support of our family, friends and the community,” said Camille Kerr, Balsiger’s daughter, in a text message sent ABC-7 General Manager Kevin Lovell, “The sentencing is not done, and there are a few things pending. We have been instructed not to speak to the press as any comments could be used against us.”
Balsiger, a corporate executive and self-made millionaire, was also known as an action-adventure enthusiast. His personal goal was climb to the highest peaks on each of the earth’s seven continents, six of which he accomplished. He bank-rolled an attempt to climb Mount Everest back in 2006, but failed to reach the summit, falling short by just a few thousand feet.
Angela Caldwell sent ABC-7 the following the statement on behalf of the Balsiger family:
“The prosecution of Chris Balsiger was always about a business vendetta. After a whopping 10 years to build their case, the government was not able to produce a single fraudulent coupon at trial. Not a single one of the alleged victims recorded a penny of loss as a result of fraud. Accountants who are ethically bound to report any suspected fraud signed off on IOS’s billing practices. The Balsiger family disagrees with the court’s findings, and believes that the court got both the facts and the law wrong. We are fully confident that this conviction will be overturned on appeal. The family will use every tool at its disposal to see that justice is done. We are relieved that all of the other ten defendants in the case were either dismissed or granted probation. We would wish our family’s suffering on no one.”
