Cover Story
The way Fred Cherney tells it, there was really no reason to suspect anything. After all, he'd done business with Jerry Kapiloff years earlier, when Kapiloff was running his own cosmetics and chemicals company. Kapiloff was such a good client that Cherney's small Friendship Heights-area printing firm, Duplicate Impressions, could have used more clients like him. “Everything was cool,” says Cherney. “He'd come in, place orders, pay up—all very friendly and pleasant.”
Their dealings were so pleasant, in fact, that in April 1992, Cherney struck a deal with Kapiloff that he hoped would help him revitalize his anemic business. The recession had been particularly unkind to Duplicate Impressions, and when Cherney advertised for a commissioned salesman to bring in business, the ever-charming Kapiloff showed up at the Wisconsin Avenue firm.
“He called himself a printing broker now and said he had lots of clients,” says Cherney. “I thought to myself, "Well, this could be a real shot in the arm.' ”
The deal was attractive to both men: According to Cherney, Kapiloff would line up business at any price he could get, no matter how inflated; then, within 30 days of the orders being filled, Kapiloff would pay Duplicate Impressions its standard rate. The arrangement could mean more business for Cherney and potentially hefty commissions for Kapiloff, whose taste for fine clothes, fancy cars, and posh addresses was, as always, very much in evidence.... Continued
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