Paul M. O’Brien
United States Attorney
Jimmie Lynn Ramsaur
Assistant U.S. Attorney
615-736-5151
MURFREESBORO WOMAN SENTENCED ON MAIL FRAUD
AND MONEY LAUNDERING CHARGES
Nashville, TN - September 21, 2007 - Paul M. O’Brien, U.S. Attorney for the Middle District of Tennessee, announced that Bobbie G. Ward, 50, of Murfreesboro, Tennessee, was sentenced by U.S. District Judge Todd J. Campbell to serve 18 months in prison, followed by 2 years of supervised release. Judge Campbell also ordered Ward to pay restitution of $413,011.59 to CNA Insurance Company.
Ward pled guilty on July 13, 2007, to one count of mail fraud and one count of money laundering. Testimony during Ward’s plea hearing revealed that from about October 1999 until around July 2002, Ward devised a scheme to obtain money or property by false pretenses, representations, and promises. Specifically, Ward generated unauthorized purchase orders through her employer, Nortel Networks, Inc. (Nortel), for computers, computer accessories, and consumer electronics that were shipped to third parties as directed by Ward. Nortel paid in excess of $900,000 to the supplier for the unauthorized purchases. The third parties paid Ward in excess of $425,000 for the items received.
Ward admitted that Nortel’s payments for the unauthorized purchases were mailed to the vendor and that she conducted financial transactions in excess of $425,000 with the proceeds of the fraud scheme.
Ward also admitted that as part of this fraudulent scheme, she directed that the items be shipped from other states to her residence in Murfreesboro, Tennessee; to Nortel’s business address in Nashville, Tennessee; and to other addresses of several third parties in other states. Ward then sold these items to various customers, either through direct contact or via eBay over the Internet. Many of the purchasers paid Ward directly by checks or through a PayPal account established by Ward.
This investigation was conducted by the U.S. Postal Inspection Service, FBI, and IRS Criminal Investigation. Assistant U.S. Attorney Jimmie Lynn Ramsaur represented the United States.