A former accounting assistant at the $104 million Pinal County Federal Credit Union in Casa Grande, Ariz. was sentenced to one year in prison and ordered to repay part of the almost $800,000 she confessed to stealing. The U.S. District Court of Arizona ordered Jennelle Rena Curtis to pay $555,571 in restitution and $200 in court assessment fees.
As part of a plea agreement, Curtis pleaded guilty to a two -count criminal information charging her with embezzlement. A criminal information is often filed when a suspect cooperates with prosecutors, intends to plead guilty or provides information that leads to additional arrests.
In her June 2, 2013 plea agreement, Curtis said she issued about 100 PCFCU checks totaling at least $780,697 for her personal use from 2008 to 2011, including two checks totaling about $226,400 that were deposited into a bank account belonging to her mother, Janet Long.
Curtis was ordered to pay $555,571 to Cumis Insurance Society, Inc., which covers PCFCU,
and to self-surrender by July 7, 2014 to the Bureau of Prisons or U.S. Marshal’s Office, the sentencing document said.
The court documents do not explain what happened with the additional $225,000 mentioned in her 2013 plea agreement.
When Curtis was arrested last year, local media reported that she had worked a decade at the credit union and was a mother of four young children whose 23-year-old husband was shot and killed at a truck stop in March.
According to an Aug. 1, 2012 article in the Phoenix New Times, her parents, Howard and Janet Long, claimed that about $200,000 of the money Curtis took from the credit union was rightfully theirs because Janet Long had given her daughter about $200,000 from a 401K account and asked her to put it into a different account.
Authorities with U.S. Assistant Attorney’s Office would not say whether additional charges are pending or if an investigation is continuing.
After her release from prison, Curtis will be on supervised probation for a period of five years.
Her plea agreement called for the prosecutor to recommend a sentence of between 24 and 30 months in prison, but did not preclude the defendant from seeking a shorter sentence.
Showing posts with label Arizona. Show all posts
Showing posts with label Arizona. Show all posts
Sunday, February 2, 2014
Friday, June 28, 2013
Arizona executives sentenced in ND bank fraud case
Two executives from a defunct Arizona mortgage lender received drastically different federal prison sentences Friday for swindling North Dakota-based BNC National Bank out of at least $26 million at a time when financial institutions were reeling from the national mortgage crisis.
Scott Powers and David McMaster pleaded guilty in October to conspiracy to commit bank fraud and wire fraud. Powers was the CEO of American Mortgage Specialists Inc., or AMS, and McMaster was the company's vice president in charge of lending operations.
In separate sentencing hearings in Bismarck, U.S. District Judge Daniel Hovland gave McMaster 15 years and six months in prison, and Powers eight years. Several employees from the bank were at the hearings.
Powers reportedly was given credit for cooperating with authorities. McMaster's lawyer said his client owned up to the charges and deserved better.
"I am hopeful that the BNC people have closure, but I am disappointed in the sentence," McMaster's defense attorney James Belanger told The Associated Press. "David McMaster took responsibility for his actions, agreed to plead guilty, and knew that he would face a term in prison."
The length of McMaster's sentence undermines the concept of responsibility in criminal cases and "underscores the irrationality" of federal sentencing guidelines, Belanger said.
Powers' attorney, Patrick Sampair, was not immediately available for comment.
Authorities say AMS defrauded the bank by providing it with false financial statements and other information about the status of loans the bank had financed. A printout obtained by a BNC employee in April 2010 showed that about $565,000 of loans remained to be sold, rather than the approximately $27 million of loans shown as being held for sale to investors.
Documents show that BNC's holding company received about $20 million from the federal Troubled Asset Relief Program, or TARP, in January 2009. About $18 million of that went to the bank. Investigators say BNC did not make its required TARP dividend payments to the government between February 2010 and December 2011.
At that point, BNC ceased funding the loans, and AMS shut its doors.
"Mr. McMaster and Mr. Powers stole $28 million from BNC banks, putting the jobs of the people who work there at risk," U.S. Attorney Timothy Purdon said. "Further, because of the TARP payments BNC had received, they also put the American taxpayer at risk."
The plea agreements call for Powers and McMaster to pay back more than $28.5 million to the government and more than $28.5 million to the bank.
Two other people were indicted in the case. Lauretta Horton, former director of accounting with AMC, and David Kaufman, an independent auditor, pleaded guilty and were sentenced to probation. Horton was charged with conspiracy to commit bank and wire fraud. Kaufman was charged with obstruction of justice.
BNS is based in Bismarck with offices in several states, including Arizona. Bank CEO Gregory Cleveland did not return a phone message Friday.
Scott Powers and David McMaster pleaded guilty in October to conspiracy to commit bank fraud and wire fraud. Powers was the CEO of American Mortgage Specialists Inc., or AMS, and McMaster was the company's vice president in charge of lending operations.
In separate sentencing hearings in Bismarck, U.S. District Judge Daniel Hovland gave McMaster 15 years and six months in prison, and Powers eight years. Several employees from the bank were at the hearings.
Powers reportedly was given credit for cooperating with authorities. McMaster's lawyer said his client owned up to the charges and deserved better.
"I am hopeful that the BNC people have closure, but I am disappointed in the sentence," McMaster's defense attorney James Belanger told The Associated Press. "David McMaster took responsibility for his actions, agreed to plead guilty, and knew that he would face a term in prison."
The length of McMaster's sentence undermines the concept of responsibility in criminal cases and "underscores the irrationality" of federal sentencing guidelines, Belanger said.
Powers' attorney, Patrick Sampair, was not immediately available for comment.
Authorities say AMS defrauded the bank by providing it with false financial statements and other information about the status of loans the bank had financed. A printout obtained by a BNC employee in April 2010 showed that about $565,000 of loans remained to be sold, rather than the approximately $27 million of loans shown as being held for sale to investors.
Documents show that BNC's holding company received about $20 million from the federal Troubled Asset Relief Program, or TARP, in January 2009. About $18 million of that went to the bank. Investigators say BNC did not make its required TARP dividend payments to the government between February 2010 and December 2011.
At that point, BNC ceased funding the loans, and AMS shut its doors.
"Mr. McMaster and Mr. Powers stole $28 million from BNC banks, putting the jobs of the people who work there at risk," U.S. Attorney Timothy Purdon said. "Further, because of the TARP payments BNC had received, they also put the American taxpayer at risk."
The plea agreements call for Powers and McMaster to pay back more than $28.5 million to the government and more than $28.5 million to the bank.
Two other people were indicted in the case. Lauretta Horton, former director of accounting with AMC, and David Kaufman, an independent auditor, pleaded guilty and were sentenced to probation. Horton was charged with conspiracy to commit bank and wire fraud. Kaufman was charged with obstruction of justice.
BNS is based in Bismarck with offices in several states, including Arizona. Bank CEO Gregory Cleveland did not return a phone message Friday.
Tuesday, June 25, 2013
Ariz. woman pleads guilty in embezzlement case at credit union
An Arizona woman has pleaded guilty to embezzling more than $780,000 from the Pinal County Federal Credit Union in Casa Grande.
The Casa Grande Dispatch reports that Jennelle Rena Curtis pleaded guilty to two counts of embezzling from a credit union Thursday as part of a plea agreement.
Court documents show that Curtis embezzled the money in 2009. She worked at the credit union from 2002 until 2011.
As part of a plea agreement, Curtis admitted issuing around 100 bank checks totaling $780,697 for personal use.
Prosecutors will recommend a sentence of between 24 and 30 months for Curtis as part of a plea deal.
Sentencing is slated in September.
The Casa Grande Dispatch reports that Jennelle Rena Curtis pleaded guilty to two counts of embezzling from a credit union Thursday as part of a plea agreement.
Court documents show that Curtis embezzled the money in 2009. She worked at the credit union from 2002 until 2011.
As part of a plea agreement, Curtis admitted issuing around 100 bank checks totaling $780,697 for personal use.
Prosecutors will recommend a sentence of between 24 and 30 months for Curtis as part of a plea deal.
Sentencing is slated in September.
Saturday, May 15, 2010
Embezzling from Arizona credit union nets 4-year term
The former manager of a Gila County credit
union has been sentenced to over four years
in federal prison for embezzling money that
led to the collapse of the institution.
Marlene Aguilera Pena, 46, also was ordered
by U.S. District Judge David G. Campbell in
Phoenix last week to pay restitution of nearly $
1.2 million and to serve five years of
supervised release after completing her
sentence.
She previously entered guilty pleas to three
counts of embezzlement.
Prosecutors said the Globe woman, as head
of the Marian Miami Federal Credit Union in
Miami, admitted taking more than $860,000
to benefit herself and family members by
creating roughly 141 fictitious loan
accounts.
Her actions caused the 2006 closing of the
institution by the National Credit Union
Administration. Depositor losses were
covered by an insurance fund run by the
NCUA.
union has been sentenced to over four years
in federal prison for embezzling money that
led to the collapse of the institution.
Marlene Aguilera Pena, 46, also was ordered
by U.S. District Judge David G. Campbell in
Phoenix last week to pay restitution of nearly $
1.2 million and to serve five years of
supervised release after completing her
sentence.
She previously entered guilty pleas to three
counts of embezzlement.
Prosecutors said the Globe woman, as head
of the Marian Miami Federal Credit Union in
Miami, admitted taking more than $860,000
to benefit herself and family members by
creating roughly 141 fictitious loan
accounts.
Her actions caused the 2006 closing of the
institution by the National Credit Union
Administration. Depositor losses were
covered by an insurance fund run by the
NCUA.
Wednesday, May 12, 2010
Phoenix Loan Officer Sentenced to Prison for Role in Mortgage Fraud Scheme
April J. Lucero, 46, of Phoenix, Ariz. was sentenced on May 10, 2010 to two years in prison for her conviction in August 2009 for her involvement in a mortgage fraud scheme in Phoenix, Ariz. Lucero pleaded guilty to one count of Conspiracy to Commit Mail, Wire and Bank Fraud, a felony, related to her participation in a two year conspiracy involving the purchase of 37 properties using fraudulent loan documents. Seven other co-conspirators were also charged and have pleaded guilty for their involvement in the conspiracy.
“Lucero worked the system by conspiring with home loan straw buyers who had no intention of ever taking up residence,” said Dennis K. Burke. “This type of fraud scheme undermined the Valley housing market leading up to its collapse.”
The case against Lucero was based on an investigation by the FBI, which indicated that from 2005 through March 2007 she conspired to commit mortgage fraud in Phoenix. Lucero fraudulently submitted mortgage loan applications, on behalf of straw buyers, under false pretenses, obtaining and disbursing the proceeds of fraudulently obtained loans, including directing portions of the proceeds in the amount of $735,000 to a bank account in Lucero’s control. Lucero used her skill as a loan officer to prepare the mortgage loan applications for a borrower misrepresenting salary, assets and liabilities. Lucero used the proceeds from the fraud for personal expenses. Lucero received a lesser sentence due to her early guilty plea and cooperation. The entire conspiracy resulted in a loss to lending institutions of approximately $9.5 million.
The investigation in this case was conducted by the FBI. The prosecution is being handled by Kevin M. Rapp and Charles W. Galbraith Assistant U.S. Attorneys, District of Arizona, Phoenix.
“Lucero worked the system by conspiring with home loan straw buyers who had no intention of ever taking up residence,” said Dennis K. Burke. “This type of fraud scheme undermined the Valley housing market leading up to its collapse.”
The case against Lucero was based on an investigation by the FBI, which indicated that from 2005 through March 2007 she conspired to commit mortgage fraud in Phoenix. Lucero fraudulently submitted mortgage loan applications, on behalf of straw buyers, under false pretenses, obtaining and disbursing the proceeds of fraudulently obtained loans, including directing portions of the proceeds in the amount of $735,000 to a bank account in Lucero’s control. Lucero used her skill as a loan officer to prepare the mortgage loan applications for a borrower misrepresenting salary, assets and liabilities. Lucero used the proceeds from the fraud for personal expenses. Lucero received a lesser sentence due to her early guilty plea and cooperation. The entire conspiracy resulted in a loss to lending institutions of approximately $9.5 million.
The investigation in this case was conducted by the FBI. The prosecution is being handled by Kevin M. Rapp and Charles W. Galbraith Assistant U.S. Attorneys, District of Arizona, Phoenix.
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