Ottumwa Man Sentenced on Charges of Wire Fraud and Money Laundering
DES MOINES, IA - On September 18, 2008 Timothy Stabile, age 45, of Ottumwa was sentenced to 46 months imprisonment for wire fraud and money laundering, announced United States Attorney Matthew G. Whitaker. Judge Robert W. Pratt also ordered Stabile to serve 3 years of supervised release at the completion of his incarceration, ordered him to pay $484,427.02 in restitution, and assessed him to pay $200 to the Crime Victim Fund.
Stabile had previously pled guilty to one count of wire fraud and one count of money laundering. Stabile was the financial advisor for Lee Barnett, who had dementia. Stable, while in this position of trust, then embezzled over $400,000 from Mr. Barnett’s Ameriprise investment accounts, and used the money to open up a restaurant in Ottumwa.
During the sentencing, Judge Pratt stated that Stabile did not accept responsibility, and found that both the vulnerable victim enhancement, and the abuse of position of trust enhancement, applied.
This investigation was conducted by the Ottumwa Police Department, and the Federal Bureau of Investigations. It was prosecuted by the U.S. Attorney’s Office, Southern District of Iowa.