Tag: Fraud

Third City Official Pleads Guilty To Embezzlement

A yearlong fraud investigation into the finances of the City of Madison resulted in a third conviction for employee Kim Bannister who pleaded guilty to a felony embezzlement charge.

Bannister served as the office manager for the city. Two other employees were convicted earlier this year.

Bannister was charged by the State Auditor’s Special Prosecuting Attorney for skimming city funds, receiving extra payroll checks, and being paid for leave she was not entitled to have.

Bannister was sentenced in Boone County Circuit Court by Judge Jay Hoke. The court agreed to suspend her sentence and granted a motion for probation for a period of seven years. Bannister was ordered to pay $39,904 in restitution to the City of Madison.

In February, two of Bannister’s co-workers were sentenced for their part in this scheme. Joanna Bias and Tammy Hill both pleaded guilty to felony embezzlement charges. The two were sentenced to one to 10 years in prison and ordered to pay restitution for funds they stole, $34,973 for Bias and $39,726 for Hill.

Another case against a fourth employee, who is alleged to also be a part of this scheme, has yet to be adjudicated.

The embezzlement took place from July 2012 through March 2020 and the amount stolen from the city totaled $157,073.

“This is a small sample of the many cases the State Auditor’s Public Integrity and Fraud Unit has taken on through a partnership with county prosecutors and law enforcement agencies across the state,” Auditor J.B. McCuskey said.

The West Virginia State Auditor’s Public Integrity and Fraud Unit includes a legal director, seven fraud examiners, four investigators and three purchasing card (P-Card) fraud monitors. To report suspected fraud, call (833) WV-FRAUD, or email wvfraud@wvsao.gov. You can also file an online complaint at www.wvsao.gov.

Secretary of State Reports Absentee Voting Fraud Scheme, Provides Little Details

West Virginia Secretary of State Mac Warner said Friday that an alleged absentee voter fraud scheme will not affect the state’s 2020 primary election results. 

Details at this point are scant, but in a press release Thursday evening, Warner said his office and law enforcement discovered the plot early and turned over their findings to the state’s U.S. attorneys. Neither would comment on the matter Friday. 

“I can neither confirm nor deny the existence of any matter in our office, or any investigation,” said Mike Stuart, U.S. Attorney for the Southern District of West Virginia.

If an indictment is handed up, the announcement would come from U.S. Attorney William Powell for the Northern District of West Virginia, Warner said.

In the Mountain State, all registered voters this year can legally cast absentee ballots in the upcoming primary, to allow for social distancing during the coronavirus pandemic. In-person early voting is still happening, from May 27 to June 6, and on election day, June 9.

In March, Warner announced that county clerks across West Virginia would be sending every registered voter an application for an absentee ballot. A month later, he announced the creation of a West Virginia Election Fraud Task Force, involving Stuart, Powell, law enforcement and election officials, “to deter voter and election fraud” associated with the primary.

Since ballot applications went out to roughly 1.2 million registered voters in April, more than 235,000 people have applied to vote absentee. Roughly 115,000 already have cast a ballot. 

Only a little more than 6,500 West Virginians voted absentee during the 2016 presidential primary. 

President Donald Trump has criticized Democratic leaders for opening up absentee voting options in states like Michigan, where he threatened to withhold federal funding as that state expanded options to vote by mail. Trump has cited concerns over voter fraud for years without providing evidence; election experts have said the problem is rare, and there’s little evidence that absentee voting works in favor of a certain party. 

Warner echoed the president’s concerns, saying more absentee voting leads to an increase in opportunities for fraud.

“It really irks me to hear reportedly on the national TV and so forth, you’ll hear, ‘well there was no evidence of widespread voter fraud.’ You don’t need widespread voter fraud,” Warner told West Virginia Public Broadcasting on Friday. In smaller elections and elections with tied results, he added, a handful of votes matter. 

Former Secretary of State and Democratic candidate Natalie Tennant called on her Republican opponent Warner to disclose more details of the alleged voter fraud. 

“This kind of fly-by-night statement without evidence or explanation hurts the voter’s confidence in the election process,” Tennant said. “It could look like an attempt to suppress voters.”

Emily Allen is a Report for America corps member. 

W.Va. Legislative Leaders Ask Judiciary Chairs to Consider Impeaching Loughry, Other Justices

Updated: Friday, June 22, 2018 at 6:00 p.m.

Hours after a West Virginia Supreme Court justice pleaded not guilty in federal court, top legislators have asked committee chairmen to consider beginning impeachment proceedings against the embroiled justice and others. 

Senate President Mitch Carmichael and House Speaker Tim Armstead sent a joint letter Friday to the Joint Judiciary Committee. The legislative leaders are asking the chairmen to “initiate a process of reviewing all available information for the purpose of evaluating impeachment proceedings which may be necessary for any member or members of the West Virginia Supreme Court of Appeals.”

“There is an ample and sufficient body of evidence available for your Committee to begin a review of these matters,” Carmichael and Armstead continued in the letter.

According to the letter, the review would include materials from recent legislative audits regarding the Supreme Court, a Judicial Investigation Committee complaint and the federal charges brought against state Supreme Court Justice Allen Loughry.

Carmichael and Armstead have asked their respective judiciary chairmen — Sen. Charles Trump and Del. John Shott — to begin the review as soon as possible during the next regularly scheduled legislative interim meetings, which are slated for June 24 through June 26.

The evaluation is expected to include recommendations as to whether a special session is appropriate to take formal action related to any such potential impeachment.

Carmichael and Armstead’s request came hours after Loughry pleaded not guilty to 22 federal charges, including fraud, witness tampering and making false statements. He remains free on $10,000 bond.

If convicted on all counts, Loughry could face a total of 395 years in prison, a fine of $5.5 million and a term of supervised release of up to 3 years.

Loughry was suspended without pay on Friday, June 8. Legislative leaders from both parties and Gov. Jim Justice have called for Loughry’s resignation. Gov. Justice also stated he “would be open to calling a special session” and that he planned to continue to have a dialogue with legislative leaders regarding the possibility of Loughry’s impeachment.

Loughry’s next court appearance is scheduled for Aug. 28 at 9:30 a.m. His travel is also restricted to the Southern District of West Virginia until that time.

West Virginia City Warns of Fake Parking Tickets

Drivers in one West Virginia city are being told to watch out for fraudulent parking tickets.

Morgantown Parking Authority director Dana McKenzie says in a news release the agency received several calls about the tickets Thursday.

McKenzie says agency parking enforcement staff and Morgantown police have been contacted.

The tickets say violators will be fined $100. But small print at the bottom of the handwritten ticket states it was issued by a concerned citizen and is not an actual fine.

The parking agency says anyone who receives these tickets should ignore them and contact the agency.

Morrisey Announces $220 Million Settlement with German Bank

West Virginia Attorney General Patrick Morrisey announced a $220 million settlement with Deutsche Bank for fraudulent conduct.

The actions by Deutsche Bank involved manipulating LIBOR, the London Interbank Offered Rate, which is known as a benchmark interest rate that affects investments. It has a widespread impact on global markets and consumers.

According to a news release from the state Attorney General’s office, the bank embezzled millions of dollars from government entities and not-for-profit organizations as an attempt to benefit its trading position.

A working group of 45 state attorneys general led the investigation, and revealed Deutsche Bank was manipulating the benchmark interest rate with inaccurate data and improper communications.

The news release states governmental and not-for-profit entities with LIBOR-linked swaps and other investment contracts with Deutsche Bank will be notified if they are eligible to receive a portion of the settlement.

West Virginia Attorney General Urges Credit Card Protections

West Virginia’s attorney general issued guidelines for gas stations and convenience stores across aimed at preventing skimming credit and debit card information.

Attorney General Patrick Morrisey, who queried the outlets about potential problems in May.

Skimmers are devices that can be attached to gas pumps and automated teller machines to intercept information from cards’ magnetic strips and later used to run up purchases.

Morrisey says the guidelines, backed by state and national trade associations, include replacing factory locks with unique locks on gas pumps, ensuring all pumps are well lit and monitored by security cameras, use tamper-evident security labels on each gas dispenser and have staff check pumps daily.

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