Cynthia Hillard Campbell, Conspiracy and Theft, Texas 2016

TEXARKANA, Texas – In a shocking revelation, eleven individuals have been indicted on federal charges involving conspiracy to commit an offense and to defraud the U.S. government and theft of government property or money in the Eastern District of Texas. The defendants, including Cynthia Hillard Campbell, 54, of Mount Pleasant, Texas, are accused of causing over $1.2 million in losses to a distributor of federal grant funds to the needy and elderly.

Those charged include Cynthia Hillard Campbell, 54, of Mount Pleasant, Texas, Beverly Thomas Logan, 64, of Mount Vernon, Texas, Lana Bowie Dethrow, 58, of Honey Grove, Texas, Marco Antonio Alcaraz-Guerrero, 40, of Greenville, Texas, Paula Wallis Trantham, 50, of Winnsboro, Texas, Christy Lynn Shelby, 41, of Mount Vernon, Texas, Brenda McGill Fountain, 60, of Mount Vernon, Texas, Darlene Hargrave Hatcher, 61, of Mount Vernon, Texas, Karinda Anne Breaux, 52, of Mount Vernon, Texas, Pamela Powe Gossett, 61, of Pittsburg, Texas, and Maria Delaluz Telles, 35, of Mount Vernon, Texas.

The indictment alleges that beginning in January 2011 and continuing until June 2015, NETO employees and contractors conspired to defraud NETO of money by writing checks drawn on NETO accounts that they would often split among themselves, and convert those funds to personal use. The indictment also alleges that NETO employees would create fraudulent invoices from vendors to support and conceal those unauthorized checks.

The indictment was unsealed today after the defendants made initial appearances before U.S. Magistrate Judge Caroline Craven in the federal court in Texarkana. NETO, headquartered in Mount Vernon, Texas, was a distributor of federal grant funds to the elderly and needy in an eight-county region, including Delta, Franklin, Hopkins, Lamar, Morris, Rains, Red River, and Titus counties.

Northeast Texas Opportunities, Inc. (NETO) received more than $3 million per year in federal funds from multiple agencies, including the U.S. Department of Transportation, U.S. Department of Health and Human Services, U.S. Office of Management and Budget (through the Agency of Children and Families), and the U.S. Department of Agriculture.

If convicted of conspiracy to commit an offense against or defraud the U.S. government, the defendants each face up to five years in federal prison. If convicted of theft of government property or money, the defendants each face up to 10 years in federal prison.

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