Karen Holtz, 50, Cuffed in $350K Identity Theft Scheme

ALEXANDRIA, Va. — Karen Holtz, 50, of Haymarket, Virginia, was arrested today and charged in a $350,000 identity theft and financial fraud scheme she allegedly ran while employed at JMS Ventures, Inc., a small firm operating as the Kenyan Collection. The business imports and sells handmade goods from Kenya, but federal prosecutors say Holtz turned it into a personal piggy bank between 2008 and 2013.

Holtz was indicted on October 26 on counts of wire fraud, aggravated identity theft, and filing false tax returns. The indictment, unsealed after her arrest, alleges she wrote unauthorized checks from the company’s bank account and rerouted customer PayPal payments straight to her personal account. She didn’t just steal funds — she stole identities. Prosecutors say she used customers’ names and credit card numbers to make fraudulent charges, padding her illegal take.

Court documents reveal Holtz obtained at least $350,000 through the scheme. She allegedly filed false federal tax returns for the years 2010 through 2013, deliberately omitting the illicit income. To cover her tracks, she’s accused of altering and destroying financial records — a move that could add obstruction to her rap sheet if proven in court.

If convicted, Holtz faces a maximum of 20 years in prison for each wire fraud count, three years for each false tax return charge, and a mandatory two-year sentence for each count of aggravated identity theft. All penalties are statutory; actual sentencing will depend on federal guidelines and judicial discretion.

The case was announced by Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Caroline D. Ciraolo, Principal Deputy Assistant Attorney General of the Tax Division; Michael L. Chapman, Loudoun County Sheriff; Brian J. Ebert, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Thomas Jankowski, Special Agent in Charge of IRS-Criminal Investigation. Holtz made her initial appearance before U.S. District Judge Anthony J. Trenga.

Assistant U.S. Attorney Katherine L. Wong and Trial Attorney Kimberly G. Ang of the Tax Division are prosecuting the case. Court records, including Indictment No. 16-cr-244, are available via the U.S. Attorney’s Office website, the Eastern District of Virginia’s District Court site, or through PACER. An indictment is not a conviction — Holtz is presumed innocent until proven guilty in a court of law.