Charitable Fraud: Stephen E. Stockman And Jason Posey Indicted for Multi-Year Fraud Scheme

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Stephen E. Stockman And Jason Posey Indicted for Multi-Year Fraud Scheme

<h2>Former Texas Congressman and Associate Indicted for Multi-Year Fraud Scheme<&sol;h2>&NewLine;<p>HOUSTON &&num;8211&semi; A former U&period;S&period; Congressman and one of his associates were indicted today for their roles in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations&period; Some of the funds were used to illegally finance the politician’s campaigns for public office and to pay for his personal expenses and those of his associates&period; Acting U&period;S&period; Attorney Abe Martinez of the Southern District of Texas and Acting Assistant Attorney General Kenneth A&period; Blanco of the Justice Department’s Criminal Division made the announcement along with Assistant Director in Charge Andrew W&period; Vale of the FBI&&num;8217&semi;s Washington Field Office and Special Agent in Charge D&period; Richard Goss of IRS &&num;8211&semi; Criminal Investigation &lpar;CI&rpar;&comma; Houston Field Office&period;<&sol;p>&NewLine;<p>Former U&period;S&period; Representative Stephen E&period; Stockman&comma; 60&comma; of Clear Lake&comma; and the former director of special projects in Stockman’s congressional office&comma; Jason Posey&comma; 46&comma; formerly of the Houston area&comma; were charged in a 28-count superseding indictment with mail and wire fraud&comma; conspiracy&comma; making false statements to the Federal Election Commission &lpar;FEC&rpar;&comma; making excessive campaign contributions and money laundering&period; Stockman is also charged with filing a false tax return that concealed his receipt and personal use of the fraudulent proceeds&comma; while Posey is charged with falsifying an affidavit in order to obstruct an FEC investigation&period; Thomas Dodd&comma; a former special assistant in Stockman’s congressional office&comma; pleaded guilty to his involvement in the scheme on March 20&comma; 2017&period;<&sol;p>&NewLine;<p>According to the superseding indictment&comma; from May 2010 to October 2014&comma; Stockman solicited approximately &dollar;1&comma;250&comma;000 in donations based on false pretenses&period; Specifically&comma; the indictment alleges that in 2010&comma; Stockman diverted a significant portion of &dollar;285&comma;000 donated to charitable causes to pay for his and Dodd’s own personal expenses and to further Stockman’s own interests&period; The indictment further alleges that in 2011 and 2012&comma; Stockman and Dodd received an additional &dollar;165&comma;000 in charitable donations&comma; much of which Stockman used to finance his 2012 congressional campaign&period;<&sol;p>&NewLine;<p>Shortly after Stockman took office in the U&period;S&period; House of Representatives in 2013&comma; he and Dodd allegedly used the name of a nonprofit entity to solicit and receive a &dollar;350&comma;000 charitable donation&period; Stockman allegedly used this donation for a variety of personal and campaign expenses&comma; including illegal conduit campaign contributions&comma; a covert surveillance project targeting a perceived political opponent and payments associated with Stockman’s U&period;S&period; Senate campaign in early 2014&period;<&sol;p>&NewLine;<p>The superseding indictment further alleges that in connection with Stockman’s Senate campaign&comma; Posey used a nonprofit entity to secure a &dollar;450&comma;571 donation in order to fund a mass-mailing project attacking Stockman’s opponent&period; Only approximately half of the donation was spent on the mail campaign&comma; and Posey used a portion of the unspent balance to pay for expenses associated with Stockman’s Senate campaign and to fund personal expenses&comma; according to the charges&period;<&sol;p>&NewLine;<p>The FBI and IRS-CI conducted the investigation&period; Assistant U&period;S&period; Attorney Melissa Annis of the Southern District of Texas and Trial Attorneys Ryan J&period; Ellersick and Robert J&period; Heberle of the Criminal Division’s Public Integrity Section are prosecuting the case&period;<&sol;p>&NewLine;<p><a href&equals;"https&colon;&sol;&sol;www&period;justice&period;gov&sol;usao-sdtx&sol;pr&sol;former-texas-congressman-and-associate-indicted-multi-year-fraud-scheme">Original PressReleases&&num;8230&semi;<&sol;a><&sol;p>&NewLine;

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