A former employee of a credit union in Dickinson County has pleaded guilty to
embezzling $85,000, U.S. Attorney Barry Grissom said today.
Deborah A. Bomia, 46, Enterprise, Kansas, pleaded guilty to one count of
embezzlement. In her plea, she admitted the crime occurred from April 30, 2005
to August 8, 2011, while she worked for Enterprise Credit Union in Enterprise,
Kansas.
Bomia kited checks between accounts in her name at Enterprise Credit Union,
creating false and fictitious balances. The embezzlement involved making a large
deposit toward the end of the month, which would be included in the general
ledger, but the actual deposit would not be sent to the corporate checking
account until around the middle of the next month. At the same time, another,
larger check would be drafted out of Bomia’s credit union checking account. The
final deposit to the general ledger was recorded July 29, 2011, in the amount of
$85,000. The money was never deposited to the credit union’s corporate
account.
Bomia agreed to an order of restitution of $85,000. Sentencing is set for
October 10. Grissom commended the FBI and Assistant U.S. Attorney Rich Hathaway
and Assistant U.S. Attorney Christine Kenney for their work on the case.
Monday, July 9, 2012
Three Defendants Plead Guilty to Disaster Fraud Related to Joplin Tornado Benefits
David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced today that three Joplin, Missouri residents have pleaded guilty in federal court, in separate and unrelated cases, to fraudulently receiving federal disaster benefits following the May 22, 2011 tornado.
Wanda Gail McBride, 51, of Joplin, pleaded guilty before U.S. District Judge Richard E. Dorr today to the charge contained in an April 3, 2012 federal indictment. McBride was taken into custody at the conclusion of her change of plea hearing. Ronald Martell Irby, 30, and Karen Marie Parks, 37, both of Joplin, also pleaded guilty to disaster fraud on Friday, July 6, 2012.
The defendants applied for federal disaster benefits by falsely claiming that their homes and property had been damaged or destroyed in the tornado. By pleading guilty, they admitted that they made materially false and fraudulent statements to FEMA in their applications for disaster benefits.
McBride falsely claimed that she was entitled to temporary rental assistance because she moved out of her home due to damage caused by the tornado and rented another residence. McBride was initially awarded $4,786 by FEMA for repairs to her residence, as well as $938 for rental assistance. McBride later submitted fraudulent documentation in order to receive $5,628 in additional rental assistance. McBride admitted today that she submitted two fabricated rental receipts with her application for FEMA rental assistance in July 2011. Later that month, she submitted a fabricated lease agreement for FEMA rental assistance at another address. McBride admitted that she had never moved to, resided at, signed a lease for, or paid rent at either address; in fact, neither address exists.
Irby listed 1823 W. 23rd St., Joplin, as his primary residence on a FEMA form in which he claimed the residence was damaged by the tornado. Irby received a total of $5,114 in FEMA payments and was provided with a temporary housing unit. However, Irby admitted today that this was never his primary residence. Rather, Irby’s girlfriend had been a one-time resident who was evicted prior to the tornado. Further, Irby himself had been banned from the property.
Parks listed 1502 S. Michigan Ave., Joplin, as her primary residence on a FEMA form in which she claimed the residence was damaged by the tornado. Parks received a payment of $1,368 from FEMA. However, Parks admitted today that she did not live at that address at the time of the disaster. Parks’s rent at another residence was paid through the Economic Security Rental Assistance Program, a state-funded program administered by the Jasper County Public Housing Agency, for individuals who were homeless and/or disabled. Because Parks did not pay her own rent, she was not eligible to receive rental assistance payments from FEMA.
Under federal statutes, each of the defendants is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin Office at 417-206-5700.
These cases are being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. They were investigated by the FBI, Homeland Security Investigations-Office of Inspector General, and the Joplin, Missouri Police Department.
Wanda Gail McBride, 51, of Joplin, pleaded guilty before U.S. District Judge Richard E. Dorr today to the charge contained in an April 3, 2012 federal indictment. McBride was taken into custody at the conclusion of her change of plea hearing. Ronald Martell Irby, 30, and Karen Marie Parks, 37, both of Joplin, also pleaded guilty to disaster fraud on Friday, July 6, 2012.
The defendants applied for federal disaster benefits by falsely claiming that their homes and property had been damaged or destroyed in the tornado. By pleading guilty, they admitted that they made materially false and fraudulent statements to FEMA in their applications for disaster benefits.
McBride falsely claimed that she was entitled to temporary rental assistance because she moved out of her home due to damage caused by the tornado and rented another residence. McBride was initially awarded $4,786 by FEMA for repairs to her residence, as well as $938 for rental assistance. McBride later submitted fraudulent documentation in order to receive $5,628 in additional rental assistance. McBride admitted today that she submitted two fabricated rental receipts with her application for FEMA rental assistance in July 2011. Later that month, she submitted a fabricated lease agreement for FEMA rental assistance at another address. McBride admitted that she had never moved to, resided at, signed a lease for, or paid rent at either address; in fact, neither address exists.
Irby listed 1823 W. 23rd St., Joplin, as his primary residence on a FEMA form in which he claimed the residence was damaged by the tornado. Irby received a total of $5,114 in FEMA payments and was provided with a temporary housing unit. However, Irby admitted today that this was never his primary residence. Rather, Irby’s girlfriend had been a one-time resident who was evicted prior to the tornado. Further, Irby himself had been banned from the property.
Parks listed 1502 S. Michigan Ave., Joplin, as her primary residence on a FEMA form in which she claimed the residence was damaged by the tornado. Parks received a payment of $1,368 from FEMA. However, Parks admitted today that she did not live at that address at the time of the disaster. Parks’s rent at another residence was paid through the Economic Security Rental Assistance Program, a state-funded program administered by the Jasper County Public Housing Agency, for individuals who were homeless and/or disabled. Because Parks did not pay her own rent, she was not eligible to receive rental assistance payments from FEMA.
Under federal statutes, each of the defendants is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin Office at 417-206-5700.
These cases are being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. They were investigated by the FBI, Homeland Security Investigations-Office of Inspector General, and the Joplin, Missouri Police Department.
Buffalo Woman Sentenced for Bank Fraud
U.S. Attorney William J. Hochul, Jr. announced today that Jayme Smith, 35, of
Buffalo, New York, who was convicted of bank fraud, was sentenced to time served
and two years’ supervised by U.S. District Judge William M. Skretny. The
defendant was also ordered to pay $20,100 to the victims of the offense.
Assistant U.S. Attorney Eric M. Opanga, who handled the case, stated that in early 2011, the defendant executed a scheme to defraud various financial institutions. Smith, with the assistance of other individuals, created approximately $564,000 worth of counterfeit checks drawn on four separate business accounts held at four different financial institutions. The defendant made these counterfeit checks payable to various individuals across the United States and subsequently mailed the checks to these individuals. All the checks created were counterfeit, and six were successfully negotiated with various financial institutions resulting in losses of over $20,000. Smith purchased check printing software, a printer, and check stock to create the counterfeit checks.
The sentencing is the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.
Assistant U.S. Attorney Eric M. Opanga, who handled the case, stated that in early 2011, the defendant executed a scheme to defraud various financial institutions. Smith, with the assistance of other individuals, created approximately $564,000 worth of counterfeit checks drawn on four separate business accounts held at four different financial institutions. The defendant made these counterfeit checks payable to various individuals across the United States and subsequently mailed the checks to these individuals. All the checks created were counterfeit, and six were successfully negotiated with various financial institutions resulting in losses of over $20,000. Smith purchased check printing software, a printer, and check stock to create the counterfeit checks.
The sentencing is the culmination of an investigation on the part of special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.
Houston Man Convicted of Defrauding VFW
Joe H. Nichols, 46, has entered a plea of guilty to one count of mail fraud in
connection with charitable donations from the Veterans of Foreign Wars of the
United States (VFW), United States Attorney Kenneth Magidson announced today.
Nichols of Houston was charged by criminal information last month.
The VFW is a charitable organization that supports veterans and active duty personnel who have or are serving in the United States military overseas. Today, Nichols admitted the VFW agreed to fund a communication project that would allow soldiers deployed in remote locations in Iraq to communicate with their families. Nichols agreed to assist the VFW by having his company, Prasolus, serve as project manager to get the communication hardware and software to Iraq.
The Texas VFW raised approximately $182,000 for the communication project, for which Nichols submitted invoices for payment. In June 2007, he traveled to the national headquarters of the VFW in Kansas City and induced the national VFW to give him an additional $100,000, which he said he needed to complete the communication project and deploy it to Iraq. Although the national VFW mailed a check to Nichols for $100,000, the communication system was never delivered. Instead, Nichols used funds from the $100,000 for his personal benefit.
U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, has set sentencing for October 22, 2012, at which time he faces 20 years in prison and a possible $250,000 fine. Nichols was permitted to remain on bond pending that hearing.
The investigation leading to the charges was conducted by the FBI. Assistant United States Attorney Belinda Beek is prosecuting the case.
The VFW is a charitable organization that supports veterans and active duty personnel who have or are serving in the United States military overseas. Today, Nichols admitted the VFW agreed to fund a communication project that would allow soldiers deployed in remote locations in Iraq to communicate with their families. Nichols agreed to assist the VFW by having his company, Prasolus, serve as project manager to get the communication hardware and software to Iraq.
The Texas VFW raised approximately $182,000 for the communication project, for which Nichols submitted invoices for payment. In June 2007, he traveled to the national headquarters of the VFW in Kansas City and induced the national VFW to give him an additional $100,000, which he said he needed to complete the communication project and deploy it to Iraq. Although the national VFW mailed a check to Nichols for $100,000, the communication system was never delivered. Instead, Nichols used funds from the $100,000 for his personal benefit.
U.S. District Judge Vanessa Gilmore, who accepted the guilty plea, has set sentencing for October 22, 2012, at which time he faces 20 years in prison and a possible $250,000 fine. Nichols was permitted to remain on bond pending that hearing.
The investigation leading to the charges was conducted by the FBI. Assistant United States Attorney Belinda Beek is prosecuting the case.
Sunday, July 8, 2012
Thousands of Tax Cheats Got Federal Mortgage Assistance or Tax Credits
A new report from the Government Accountability Office (GAO) found that thousands of home-buyers with significant tax debt were given one-time mortgage help under the American Recovery and Reinvestment Act (ARRA), despite federal rules that make tax cheats ineligible for federal mortgage insurance. The report found that “many individuals with tax debt take advantage of government programs, such as federal loan insurance, thereby reaping benefits from these programs while failing to pay their own taxes.” The report also found tax cheats that took advantage of the program were two-to-three times more likely to default on home loans, posing a much higher risk for the program. The report was done at the request of Senators Tom Coburn, M.D. (R-OK), Carl Levin (D-MI), Max Baucus (D-MT), Orrin Hatch (R-UT) and Charles Grassley (R-IA).
“In the name of ‘stimulus,’ the federal government gave mortgage insurance to thousands of people who were tax cheats and had a bad track record paying their debts. No one would handle their own money that way. Yet, the federal government needlessly put taxpayers on the line to help tax cheats buy homes. Congress needs to ensure that tax cheats are no longer allowed to take advantage of FHA programs,” Dr. Coburn said.
“We need to do more, not less, to help America’s housing recovery and keep people in their homes,” said Levin. “But we can’t allow tax cheats to benefit from important federal programs. The FHA should, as GAO suggests, strengthen protections to make sure assistance goes to those who qualify.”
“As this report demonstrates, the trillion dollar stimulus has never lived up to the President’s promises,” said Hatch. “Not only has it funded things like turtle-tunnels and skateboard parks, but now we find out that known tax cheats are abusing a home ownership program. Give me a break. The American people deserve better than this – they deserve better than to have their hard-earned tax dollars flushed down the drain to benefit scam artists and tax cheats.”
“The stimulus spending program was ill-conceived, with far too little oversight,” Grassley said. “It shouldn’t surprise anyone, unfortunately, that tax dollars have gone to tax cheats. It’s another one of many negative consequences of writing checks without enough checks and balances.”
According to GAO, at least 6,327 tax delinquents, owing nearly $78 million in federal tax debt, received more than $1.44 billion in Federal Housing Administration (FHA) mortgage insurance for loans issued under the Recovery Act. More than half of these individuals also received a total of $27.4 million First-Time Homebuyer Tax Credits. Tax cheats, by law, are prevented from obtaining federal subsidies for mortgage insurance. The Recovery Act raised the limit on the loans FHA was allowed to insure, resulting in FHA insurance of more than $20 billion in for 87,000 households.
Tax cheats can legitimately receive mortgage insurance, but only after entering an approved repayment plan set up with the Internal Revenue Service (IRS). However, the GAO sampled eight of these tax delinquency cases and found that five did not have valid IRS repayment plans. The number of tax cheats receiving mortgage assistance was in part “due to shortcomings in the capacity of FHA required documentation to identify tax debts” and other policies that lenders may misinterpret.
One of the tax cheats profiled in the report owed $10,000 in taxes, but still received over $700,000 in mortgage insurance. At the same time, the tax cheat claimed the earned income tax credit (EITC). The tax cheat later filed bankruptcy, defaulted on his federally insured home loan, and lost the house in foreclosure.
The report found that it is critical that the FHA has enforceable policies in place to reduce tax cheats receiving mortgage insurance so that the agency can “minimize the financial risks to the federal government while meeting the housing needs of borrowers.”
GAO estimated that the impact of giving mortgage insurance to known tax cheats could weaken the already precarious financial condition of the FHA Mutual Mortgage Insurance Fund (MMIF), which funds its programs. FHA insures lenders against the costs from foreclosures. The fund currently has only $2.6 billion in reserves to protect its entire $1.08 trillion mortgage portfolio, well below statutorily mandated levels. And since tax cheat borrowers are two to three times more likely to be foreclosed upon, the trust fund is likely only to weaken further. Tax-cheat owned foreclosed properties approved under the Recovery act have already potentially cost the (MMIF) over $81 million.
Read the full report here: GAO-12-592 "Recovery Act: Tax Debtors Have Received FHA Mortgage Insurance and First-Time Homebuyer Credits"
“In the name of ‘stimulus,’ the federal government gave mortgage insurance to thousands of people who were tax cheats and had a bad track record paying their debts. No one would handle their own money that way. Yet, the federal government needlessly put taxpayers on the line to help tax cheats buy homes. Congress needs to ensure that tax cheats are no longer allowed to take advantage of FHA programs,” Dr. Coburn said.
“We need to do more, not less, to help America’s housing recovery and keep people in their homes,” said Levin. “But we can’t allow tax cheats to benefit from important federal programs. The FHA should, as GAO suggests, strengthen protections to make sure assistance goes to those who qualify.”
“As this report demonstrates, the trillion dollar stimulus has never lived up to the President’s promises,” said Hatch. “Not only has it funded things like turtle-tunnels and skateboard parks, but now we find out that known tax cheats are abusing a home ownership program. Give me a break. The American people deserve better than this – they deserve better than to have their hard-earned tax dollars flushed down the drain to benefit scam artists and tax cheats.”
“The stimulus spending program was ill-conceived, with far too little oversight,” Grassley said. “It shouldn’t surprise anyone, unfortunately, that tax dollars have gone to tax cheats. It’s another one of many negative consequences of writing checks without enough checks and balances.”
According to GAO, at least 6,327 tax delinquents, owing nearly $78 million in federal tax debt, received more than $1.44 billion in Federal Housing Administration (FHA) mortgage insurance for loans issued under the Recovery Act. More than half of these individuals also received a total of $27.4 million First-Time Homebuyer Tax Credits. Tax cheats, by law, are prevented from obtaining federal subsidies for mortgage insurance. The Recovery Act raised the limit on the loans FHA was allowed to insure, resulting in FHA insurance of more than $20 billion in for 87,000 households.
Tax cheats can legitimately receive mortgage insurance, but only after entering an approved repayment plan set up with the Internal Revenue Service (IRS). However, the GAO sampled eight of these tax delinquency cases and found that five did not have valid IRS repayment plans. The number of tax cheats receiving mortgage assistance was in part “due to shortcomings in the capacity of FHA required documentation to identify tax debts” and other policies that lenders may misinterpret.
One of the tax cheats profiled in the report owed $10,000 in taxes, but still received over $700,000 in mortgage insurance. At the same time, the tax cheat claimed the earned income tax credit (EITC). The tax cheat later filed bankruptcy, defaulted on his federally insured home loan, and lost the house in foreclosure.
The report found that it is critical that the FHA has enforceable policies in place to reduce tax cheats receiving mortgage insurance so that the agency can “minimize the financial risks to the federal government while meeting the housing needs of borrowers.”
GAO estimated that the impact of giving mortgage insurance to known tax cheats could weaken the already precarious financial condition of the FHA Mutual Mortgage Insurance Fund (MMIF), which funds its programs. FHA insures lenders against the costs from foreclosures. The fund currently has only $2.6 billion in reserves to protect its entire $1.08 trillion mortgage portfolio, well below statutorily mandated levels. And since tax cheat borrowers are two to three times more likely to be foreclosed upon, the trust fund is likely only to weaken further. Tax-cheat owned foreclosed properties approved under the Recovery act have already potentially cost the (MMIF) over $81 million.
Read the full report here: GAO-12-592 "Recovery Act: Tax Debtors Have Received FHA Mortgage Insurance and First-Time Homebuyer Credits"
Friday, July 6, 2012
Former Atascadero Real Estate Developer Charged with Defrauding Investors in Central Coast Real Estate
A real estate developer who formerly resided in Atascadero was indicted today on
federal fraud and money laundering charges that accuse him of bilking investors
who put money into Central Coast real estate projects—money that was siphoned
off for other purposes, including maintaining a lavish lifestyle.
Kelly Gearhart, 50, who currently resides in Wadsworth, Ohio, was named in a 16-count indictment returned today by a federal grand jury. The indictment charges Gearhart with 10 counts of mail fraud, four counts of wire fraud, and two counts of money laundering.
The indictment alleges that Gearhart fraudulently solicited investments in specific real estate development projects by falsely promising that he would use the funds to develop those projects. Gearhart also told investors that their investments—which he called loans and promised would be paid back with interest—were secured by specific lots.
The indictment alleges that Gearhart failed to disclose a number of things to investors, specifically, that he was using victims’ funds to pay for his and his wife’s lavish living expenses, that he was using their money to develop different real estate projects than those intended by the victims, and that he was using victims’ money to make interest payments to other investors.
The indictment also alleges that Gearhart falsely promised that he would sell specific lots underlying the real estate projects and then rent them back from the purchasers. The indictment alleges that Gearhart did not tell victims that he was selling the same individual lots to multiple purchasers and that he did not intend to transfer the promised lots to them. The indictment further alleges that Gearhart did not tell victims that he did not have clear title to the land underlying the real estate projects.
In this multi-million-dollar case, the exact loss figure is expected to be the subject of litigation. Because of this, the government is not alleging a specific loss amount at this time.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The mail fraud and wire fraud charges each carry a statutory maximum penalty of 20 years in federal prison. The money laundering count carries a statutory maximum penalty of 10 years in federal prison. Therefore, if he were to be convicted of all 16 counts in the indictment, Gearhart would face a maximum sentence of 300 years in federal prison.
Gearhart will be summoned to appear for an arraignment in United States District Court in the coming weeks.
The case against Gearhart is related to a case against James Hurst Miller, Jr., the former president of the Atascadero-based Hurst Financial Corporation. Miller pleaded guilty in September 2011 to four counts of fraud and money laundering charges. Miller is currently scheduled to be sentenced on October 29 by United States District Judge Otis D. Wright, II.
The case against Gearhart is the result of an investigation by the Federal Bureau of Investigation and IRS-Criminal Investigation. The San Luis Obispo County District Attorney’s Office provided substantial assistance in the investigation.
Kelly Gearhart, 50, who currently resides in Wadsworth, Ohio, was named in a 16-count indictment returned today by a federal grand jury. The indictment charges Gearhart with 10 counts of mail fraud, four counts of wire fraud, and two counts of money laundering.
The indictment alleges that Gearhart fraudulently solicited investments in specific real estate development projects by falsely promising that he would use the funds to develop those projects. Gearhart also told investors that their investments—which he called loans and promised would be paid back with interest—were secured by specific lots.
The indictment alleges that Gearhart failed to disclose a number of things to investors, specifically, that he was using victims’ funds to pay for his and his wife’s lavish living expenses, that he was using their money to develop different real estate projects than those intended by the victims, and that he was using victims’ money to make interest payments to other investors.
The indictment also alleges that Gearhart falsely promised that he would sell specific lots underlying the real estate projects and then rent them back from the purchasers. The indictment alleges that Gearhart did not tell victims that he was selling the same individual lots to multiple purchasers and that he did not intend to transfer the promised lots to them. The indictment further alleges that Gearhart did not tell victims that he did not have clear title to the land underlying the real estate projects.
In this multi-million-dollar case, the exact loss figure is expected to be the subject of litigation. Because of this, the government is not alleging a specific loss amount at this time.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The mail fraud and wire fraud charges each carry a statutory maximum penalty of 20 years in federal prison. The money laundering count carries a statutory maximum penalty of 10 years in federal prison. Therefore, if he were to be convicted of all 16 counts in the indictment, Gearhart would face a maximum sentence of 300 years in federal prison.
Gearhart will be summoned to appear for an arraignment in United States District Court in the coming weeks.
The case against Gearhart is related to a case against James Hurst Miller, Jr., the former president of the Atascadero-based Hurst Financial Corporation. Miller pleaded guilty in September 2011 to four counts of fraud and money laundering charges. Miller is currently scheduled to be sentenced on October 29 by United States District Judge Otis D. Wright, II.
The case against Gearhart is the result of an investigation by the Federal Bureau of Investigation and IRS-Criminal Investigation. The San Luis Obispo County District Attorney’s Office provided substantial assistance in the investigation.
San Carlos Woman Admits to Embezzling Tribal Funds
Holley Faye Youvella, 34, of San Carlos, Arizona, pleaded guilty today to
embezzlement of tribal funds in federal district court in Phoenix.
In the course of Youvella’s guilty plea, she admitted that between October 2008 and March 2010, while serving as a bookkeeper for Peridot Shopping Center Inc., she embezzled approximately $268,106 of the shopping center’s money. Youvella cashed approximately 237 fraudulent checks drawn from the shopping center’s checking account. The checks were made out to Youvella or to a member of her family. Peridot Shopping Center Inc. is a San Carlos Apache Tribal Organization.
Youvella also admitted that between June 2010 and August 2010, she stole approximately $4,301 by directing multiple fraudulent electronic payments from the shopping center’s checking account to personal credit and utility accounts containing balances owed by Youvella and a family member.
A conviction for embezzlement of tribal funds carries a maximum penalty of five years in prison, a $250,000 fine, or both. In determining an actual sentence, U.S. District Judge Frederick J. Martone will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.
Youvella is scheduled to be sentenced by Judge Martone on October 15, 2012, at 3:30 p.m.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the San Carlos Apache Tribal Police Department. The prosecution is being handled by Frederick A. Battista, Assistant U.S. Attorney, District of Arizona, Phoenix.
In the course of Youvella’s guilty plea, she admitted that between October 2008 and March 2010, while serving as a bookkeeper for Peridot Shopping Center Inc., she embezzled approximately $268,106 of the shopping center’s money. Youvella cashed approximately 237 fraudulent checks drawn from the shopping center’s checking account. The checks were made out to Youvella or to a member of her family. Peridot Shopping Center Inc. is a San Carlos Apache Tribal Organization.
Youvella also admitted that between June 2010 and August 2010, she stole approximately $4,301 by directing multiple fraudulent electronic payments from the shopping center’s checking account to personal credit and utility accounts containing balances owed by Youvella and a family member.
A conviction for embezzlement of tribal funds carries a maximum penalty of five years in prison, a $250,000 fine, or both. In determining an actual sentence, U.S. District Judge Frederick J. Martone will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.
Youvella is scheduled to be sentenced by Judge Martone on October 15, 2012, at 3:30 p.m.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the San Carlos Apache Tribal Police Department. The prosecution is being handled by Frederick A. Battista, Assistant U.S. Attorney, District of Arizona, Phoenix.
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