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Department of Justice United States Attorney David L. Huber Contact: Sandy Focken |
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July 21, 2008
LOUISVILLE WOMAN 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 - Michelle M. Garza, age 43, of Mesa, Arizona, pleaded guilty to charges of conspiracy to commit mail fraud U.S. Attorney David L. Huber of the Western District of Kentucky announced today.
The following four co-defendants previously pleaded guilty on May 19, 2008:Laura L. Cornett, age 27, of Henryville, Indiana, Anthony G. Dale, age 23, of Louisville, Kentucky, Karen R. Lucey, age 43, of Louisville, Kentucky, Nicole M. Cook, age 32, of Louisville, Kentucky and Jon E. Elder, age 45, of Prescott, Arizona,
The remaining co-defendants, Wilfredo Y. Pasion, age 53, of Floyds Knobs, Indiana and, Darren E. Moate, age 40, of Mesa, Arizona, and are schedule for trial on August 19, 2008.
The Indictment to which Garza, Cornett, Dale, Lucey, Cook, and Elder pleaded guilty alleges 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 also alleges 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, that Indictment alleges that 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.
The Indictment also alleges that 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.
The Indictment further alleges that 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.
The Indictment further alleges that 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.
The Indictment further alleges that 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.
The Indictment further alleges that 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.
The Indictment further alleges that 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.
The Indictment further alleges that 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 is being prosecuted by Assistant United States Attorney Bryan Calhoun and it was investigated by the United States Postal Inspection Service and the United States Secret Service.
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