Related Federal Cases
Local Businesswoman Embroiled in $309,000 Scandal
A sales administrator for HeathCo LLC in Bowling Green, Kentucky, has been charged with mail fraud, identity theft, and tax fraud after allegedly receiving $308,954.42 in kickbacks from $2,696,400 in fraudulent advertisement sales.
Annette Thomas, 42, of Warren County, Kentucky, appeared before United States Magistrate Judge H. Brent Brennenstuhl on suspicion of the charges, which include ten counts of mail fraud, three counts of identity theft, and two counts of filing false tax returns with the Internal Revenue Service.
According to the indictment, Thomas used forged signatures of her supervisor to authorize payments to Professional Sport Publications (PSP) and Adventure Entertainment Promotions (AEP) for unwanted and unnecessary advertisements in sports publications around the United States.
Thomas allegedly authorized payment to PSP in the amount of $15,000 per advertisement and in return for advertisements, PSP allocated approximately 20% of the value of the advertisement in merchandising credits. Merchandising credits consisted of gift cards, sports tickets, concert tickets, airline tickets, and hotel and resort reservations.
In executing the scheme, Thomas used the United States Mail and other common carriers to mail payments for the unauthorized advertisements and received merchandising credits for HeathCo, that were diverted by Thomas for her own personal benefit.
If convicted of the charges, Thomas could be sentenced to no more than 20 years for each count of mail fraud, two years for each count of aggravated identity theft, and three years for each count of filing a false tax return. Thomas could be fined $250,000 for each charge. The investigation is ongoing and is being led by the United States Postal Inspection Service and Internal Revenue Service (IRS) Criminal Investigation division.
The charge of a person by Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Joshua Judd, who has a reputation for aggressively pursuing white-collar criminals. The alleged scheme is a stark reminder of the need for vigilant oversight and accountability in the business world.
Key Facts
- State: Kentucky
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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