Related Federal Cases
- Calif. Man Indicted for $Million NJ Fraud Scheme · New Jersey
- Nevada Man Charged in $5 Million Investment Fraud Scheme · New Jersey
- $14 Million Tobacco Excise Tax Fraud Scheme Unraveled · New Jersey
- Christopher Glynn Charged in $Millions Investment Fraud Scheme · Oregon
- California Man Sentenced to 15 Months for Role in Patient Brokering Scheme · Maryland
California Woman Sentenced for $1.8 Million Fraud Scheme
San Diego, CA – Deborah Tumlinson, a resident of Valley Center, California, was sentenced to a year and a day in custody for her involvement in a complex fraud scheme. The scheme, which ran from May 2010 to April 2013, involved obtaining loan proceeds from U.S. Claims (Lifeline Funding, LLC), a funding company based in Moorestown, New Jersey.
According to court documents, Tumlinson made false representations to obtain a loan of $750,000 from U.S. Claims. She caused her attorney, Carter Johnston, to send a letter to her real estate broker, which misrepresented that Tumlinson and her husband had reached a settlement in their pending lawsuit against SDG&E. The lawsuit, Edward Malone, et al. v. SDG&E, et al., Case No. 37-2008-00081779-CU-PO-CTL in San Diego Superior Court, was based on allegations that the Tumlinsons’ former residence in Ramona, California, was damaged by the Witch Creek Wildfire on October 21, 2007.
Tumlinson caused Johnston to send a second letter to her real estate agent on September 30, 2010, which misrepresented that the Tumlinsons had obtained funding for the purchase of a new residence in Valley Center, California. On October 2, 2010, Tumlinson caused Johnston to send a letter to U.S. Claims, misrepresenting that the Tumlinsons had settled the SDG&E lawsuit for $2,490,000. Three days later, Tumlinson falsely told U.S. Claims that a court-appointed mediator in the SDG&E lawsuit had already awarded $2.4 million to the Tumlinsons.
The Tumlinsons received a loan from U.S. Claims in the amount of $750,000, which they never repaid. After receiving the loan proceeds, Tumlinson wire-transferred $550,000 into escrow on October 8, 2010, for the purchase of the Valley Center property. Using the equity from the Valley Center property, Tumlinson sought a new loan from Seaside Funding Inc., a mortgage broker, based in Carlsbad, California.
At sentencing, Judge Janis L. Sammartino noted that Tumlinson’s property did receive some damage from the 2007 fire, but that her subsequent actions made her “pain and anguish spread to others.” Acting U.S. Attorney Alana W. Robinson stated, “The defendant suffered losses during a terrible wildfire, like many others did. But she exploited her own tragedy and the compassion of others, and in the process made sure it became someone else’s tragedy, too. The people she fleeced paid a high price, and for that, she will now pay the price.”
Tumlinson was also ordered to pay restitution in the amount of $1,838,742.24. This case was investigated by the U.S. Attorney’s Office and the Federal Bureau of Investigation.
Assistant U.S. Attorney Christopher P. Tenorio prosecuted the case.
Key Facts
- State: California
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News