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Department of Justice United States Attorney David L. Huber Contact: Sandy Focken |
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August 19, 2008
ANOTHER INDIVIDUAL PLEADS GUILTY TO STEALING REBATE CHECKS AND THEN FRAUDULENTLY CASHING THEM AT LOCAL BANKS
– $179,000 in fraudulent rebate checks stolen
– Scheme involved individuals from Louisville, Indiana, and Arizona
LOUISVILLE, KY - Darren E. Moate, age 40, of Mesa, Arizona, pleaded guilty on August 18, 2008, to an indictment charging him with conspiracy to commit mail fraud currency violation of 18 U.S.C. § 1349, David L. Huber, United States Attorney for the Western District of Kentucky, announced today.
Co-defendant, Wilfredo Y. Pasion, age 53, of Floyds Knobs, Indiana, is scheduled for a hearing on September 22, 2008, at 1:00 p.m.
Previously, the following co-defendants pleaded guilty: Michelle M. Garza, age 43, of Mesa, Arizona, Laura L. Cornett, age 27, of Henryville, Indiana, Nicole M. Cook, age 32, of Louisville, Kentucky, Anthony G. Dale, age 23, of Louisville, Kentucky, Karen R. Lucey, age 43, of Louisville, Kentucky, and Jon E. Elder, age 45, of Prescott, Arizona.
The Indictment to which they pleaded guilty charged that Darren Moate while working for Global Fulfillment Services ("GFS"), located in Phoenix, Arizona, stole rebate checks issued by GFS. GFS is a rebate processing company that contracts with retail companies to process rebates submitted by their customers. After stealing the checks Moate then gave them to his girlfriend, Michelle Garza, who mailed the stolen rebate checks to Wilfredo Pasion in Floyds Knobs, Indiana, and Lucey, in Louisville, Kentucky. The indictment charged that Pasion then recruited a number of individuals, including Moate, Cornett, Cook, Dale, Lucey, and Elder, to open bank accounts in Louisville, Kentucky, and, elsewhere, in order to fraudulently negotiate the rebate checks stolen from GFS. Pasion had these individuals open bank accounts for the sole purpose of fraudulently negotiating the stolen rebate checks.
More particularly, on January 17, 2006, Cornett, opened an account in the name of Net Aide, LLC, at PNC Bank in Sellersburg, Indiana, for the sole purpose of depositing the stolen rebate checks. Between January 17, 2006, through March 17, 2006, Pasion caused Cornett to deposit approximately $4,300 in stolen rebate checks to be deposited into this account.
On January 5, 2006, Cook, opened an account in the name of Alpha Biznet, LLC, at PNC Bank in Louisville, Kentucky, for the sole purpose of depositing the stolen rebate checks. Between January 5, 2006, through February 23, 2006, Pasion caused Cook to deposit approximately $17,600 in stolen rebate checks to be deposited into this account.
On February 2, 2006, Cook opened another account in the name of Alpha Biznet, LLC, at Your Community Bank in Jeffersonville, Indiana, for the sole purpose of depositing the stolen rebate checks. Between February 2, 2006, through April 11, 2006, Pasion caused Cook to deposit approximately $12,000 in stolen rebate checks to be deposited into this account.
On March 9, 2006, Dale, opened an account in the name of Network Installers, LLC, at Republic Bank and Trust Company, Louisville, Kentucky, for the sole purpose of depositing the stolen rebate checks. Between March 9, 2006, through July 18, 2006, Pasion caused Dale to deposit approximately $28,500 in stolen rebate checks to be deposited into this account.
On November 8, 2005, Lucey, opened an account in the name of ABCD Computers Systems Tech, LLC, at Republic Bank and Trust Company, Louisville, Kentucky, for the sole purpose of depositing the stolen rebate checks. Between November 8, 2005, through January 23, 2006, Pasion caused Lucey to deposit approximately $47,000 in stolen rebate checks to be deposited into this account.
On March 6, 2006, Elder, opened an account in the name of Net Aide, LLC, at Republic Bank and Trust Company, New Albany, Indiana, for the sole purpose of depositing the stolen rebate checks. Between March 6, 2006, through June 21, 2006, Pasion caused Elder to deposit approximately $47,500 in stolen rebate checks to be deposited into this account.
On March 10, 2006, Elder, opened another account in the name of Net Aide, LLC, at Stockyards Bank and Trust, Floyds Knobs, Indiana, for the sole purpose of depositing the stolen rebate checks. Between March 10, 2006, through June 3, 2006, Pasion caused Elder to deposit approximately $22,200 in stolen rebate checks to be deposited into this account.
Following the deposit of the stolen rebate checks, Cornett, Cook, Dale, Lucey, and Elder gave the proceeds to Pasion.
The maximum potential penalties are 20 years imprisonment, a $250,000 fine, and supervised release for a period of 3 years.
The case was prosecuted by Assistant United States Attorneys Bryan Calhoun and Jim Lesousky and it was investigated by the United States Postal Inspection Service and the United States Secret Service.
Moate’s sentencing is scheduled for December 15, 2008, at 1:30 p.m., in Louisville, Kentucky.
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