HAYMARKET, VA – Karen Holtz, 50, of Haymarket, is facing a lengthy prison sentence after being arrested today and indicted on charges of wire fraud, aggravated identity theft, and filing false tax returns. The case, unsealed this morning, details a years-long scheme to siphon funds from her employer and defraud customers.
According to court documents, Holtz worked at JMS Ventures, Inc., doing business as the Kenyan Collection, a small business importing handcrafted goods from Kenya. Between 2008 and 2013, Holtz allegedly engaged in a brazen pattern of financial misconduct, writing unauthorized checks to herself from the company bank account and redirecting customer payments intended for JMS directly into her own personal bank account via PayPal.
The indictment doesn’t stop there. Holtz is also accused of outright stealing the identities of JMS’s customers, using their personal information – names and credit card numbers – to make fraudulent charges. The total haul from this elaborate scheme is estimated at a minimum of $350,000. Federal investigators say Holtz attempted to cover her tracks by altering and destroying crucial records that would have exposed the fraud.
Adding insult to injury, Holtz allegedly failed to report all of the income she illegally obtained on her federal income tax returns for the years 2010 through 2013. This means she not only stole from a business and its customers, but also cheated the government out of tax revenue. The investigation was a joint effort between multiple federal agencies.
If convicted, Holtz is looking at a maximum penalty of 20 years behind bars for each count of wire fraud. Each count of filing false tax returns carries a potential three-year sentence. Most damningly, the aggravated identity theft charges carry a mandatory two-year sentence – meaning even a lenient judge has no choice but to add that time to any other sentence imposed.
The announcement of Holtz’s arrest was made jointly by U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Principal Deputy Assistant Attorney General Caroline D. Ciraolo, Loudoun County Sheriff Michael L. Chapman, Secret Service Special Agent in Charge Brian J. Ebert, and IRS-Criminal Investigation Special Agent in Charge Thomas Jankowski. Assistant U.S. Attorney Katherine L. Wong and Trial Attorney Kimberly G. Ang are prosecuting the case, and Holtz made her initial appearance before U.S. District Judge Anthony J. Trenga today. The government will likely seek full restitution for both JMS Ventures and its defrauded customers.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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