Karen L. Hodges Pleads Guilty to $40K in Counterfeit Check Fraud

CHARLESTON, W.Va. – The grimy halls of justice were filled with a heavy dose of corruption as Karen L. Hodges, also known by several aliases including Karen Igo and Karen Clay, pleaded guilty to three counts of securities fraud. At age 49, the St. Albans resident faces an unforgiving sentence for her fraudulent antics.

According to court documents, Hodges concocted counterfeit payroll checks that appeared to be issued by Kroger. She cashed these deceptions between October 20, 2018, and December 19, 2018, at various locations within the Southern District of West Virginia, amassing $2,461.96 in ill-gotten gains. Hodges, who never worked for Kroger, was well aware she was deceiving the grocer with her forgeries.

Beyond the Southern District, Hodges’ reach extended to the Northern District of West Virginia, Indiana, Kentucky, Ohio, and Virginia, where she cashed a staggering $37,587.66 in counterfeit checks. Adding insult to injury, Hodges also cashed two legitimate checks in her father’s name, totaling $983.12.

Scheduled for sentencing on May 3, 2023, Hodges is staring down a maximum of 30 years behind bars, three years of supervised release, and a fine that could reach $750,000. She is also liable for restitution of $38,570.78.

United States Attorney Will Thompson led the charge against this financial fiend, commending the relentless efforts of the United States Secret Service in their investigation. Senior United States District Judge John T. Copenhaver, Jr., oversaw the hearing, and Assistant United States Attorneys Kristin F. Scott and Ryan A. Keefe prosecuted the case with unwavering resolve.

For more information, visit the U.S. Attorney’s Office for the Southern District of West Virginia website or search PACER for Case No. 2:22-cr-223, where a detailed account of this crime against the economy awaits.