ST. LOUIS – A shocking tale of greed and deception has come to an end in the city, as 69-year-old Paula Smith was sentenced to 46 months in federal prison for her role in a brazen $670,000 trust account fraud scheme.
According to court documents, Smith, a bookkeeper at a St. Louis accounting firm, embezzled funds from the D.E.W. Trust, a lucrative trust account valued at $8.6 million, between October 2013 and June 2018. The trust had over twenty named beneficiaries, including twelve charitable organizations in St. Louis.
Smith’s scheme involved writing numerous checks totaling $670,000 from the D.E.W. Trust to herself, despite having no legitimate claim to the funds. To conceal her scheme, she manipulated the accounting records, mislabeling the fraudulent checks as advance payments to a trustee and payments to a vendor.
As a result of these fraudulent transactions, there were less available funds to be properly distributed to the intended charitable organization beneficiaries of the D.E.W. Trust. Smith used the funds to personally enrich herself, purchasing a 2017 Chevrolet Silverado K1500 and a 2018 Keystone Hornet Hideout 26RLS Travel Trailer.
“People who think they can get away with embezzling money should realize the crime eventually catches up with them like it did with Paula Smith,” said Acting Special Agent in Charge Spencer Evans of the FBI St. Louis Division. “While Smith enriched herself in the short term, she will now pay a much higher price with a sentence of almost 4 years in federal prison.”
The case was investigated by the Federal Bureau of Investigation with assistance from the Montgomery Bank Anti-Money Laundering Team. Assistant United States Attorney Kyle T. Bateman is handling the matter.
Smith pleaded guilty to three counts of mail fraud and one count of money laundering in connection with the scheme. Her sentence of 46 months in federal prison is a stark reminder that those who commit white-collar crimes will be held accountable.
The guilty verdict and ensuing sentence are a testament to the tireless efforts of law enforcement and prosecutors in bringing Smith to justice. The people of St. Louis can rest easier knowing that those who would seek to exploit and deceive will be brought to account for their actions.
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Key Facts
- State: Missouri
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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