Witness in Probe of Rio Tragedy Held in Fraud Case

An Encino man who is a witness in the investigation of the catastrophic sinking of a yacht off Rio de Janeiro was arrested Tuesday on federal charges that he and three associates operated a North Hollywood “boiler room� that defrauded businesses of at least $2 million.

Peter Tripp, 41, and the three other suspects were arrested at the Business Systems Exchange office on Magnolia Boulevard in Sherman Oaks. Also arrested were Laszlo Grabecz, 41, of Los Angeles and Richard Fonseca, 54, and his son, Christopher, 25, both of Agoura. The four suspects were indicted March 30 in Greeneville, Tenn. Tripp and Grabecz each face 79 counts of mail and wire fraud while Richard Fonseca has been charged with 59 counts and his son with 26 counts.

‘Key’ Witness

Assistant U.S. Atty. David Katz said officials in California believe that the scheme has netted at least $2 million from businesses across he country.

Tripp received attention early this year after he survived the sinking of a charter yacht on a New Year’s Eve excursion to Copacabana. Described as a “key� witness by Brazilian authorities, Tripp returned to the country to tell investigators that he saw the booking agent give money to a police officer, who then allowed the crowded yacht to proceed despite heavy winds and dangerous surf. Authorities said the investigation of the accident, in which 56 people died, is continuing.

The Tennessee indictment describes Tripp as vice president of United Business Exchange and U.S. Pen and Office Products, two businesses in North Hollywood until the operation changed names and moved to Sherman Oaks, authorities said. Grabecz is president and the Fonsecas are salesmen, authorities said.

According to the indictment, the four men operated a scam in which businesses throughout the country were called and fraudulently sold office supplies at inflated prices and at excessive quantities. They allegedly lured purchasers for the companies into the scheme by offering small personal gifts in return for orders of business supplies.