CHARLESTON, W.Va. – A St. Albans woman with a history of aliases has admitted to a brazen scheme to defraud Kroger stores out of tens of thousands of dollars using counterfeit and stolen checks. Karen L. Hodges, 49, also known as Karen Igo, Karen Clay, Karen Richmond, and Karen Gessel, pleaded guilty today to three counts of securities fraud in federal court.
According to court documents, Hodges orchestrated a calculated fraud, having counterfeit payroll checks created to *look* like legitimate Kroger employee payments. Between October 20, 2018, and December 19, 2018, she successfully cashed three of these bogus checks at Kroger locations within the Southern District of West Virginia, netting $2,461.96. Hodges brazenly admitted she never worked for the grocery chain, and knowingly deceived them for cash.
But the initial haul was just the tip of the iceberg. Hodges confessed to presenting and cashing numerous other counterfeit checks totaling a staggering $37,587.66 during the same period. Her reach extended far beyond West Virginia, with fraudulent checks cashed in Kroger stores across the Northern District of West Virginia, as well as in Indiana, Kentucky, Ohio, and Virginia. As if that wasn’t enough, she also admitted to illegally cashing two legitimate checks belonging to her father, totaling $983.12, at Kroger locations within the Southern District of West Virginia.
The U.S. Secret Service, leading the investigation, dug deep into Hodges’ financial trail. The evidence painted a clear picture of a systematic and widespread fraud. The total amount of fraudulent activity now stands at $38,570.78. This isn’t a case of a desperate act; it’s a calculated effort to line her pockets at the expense of a major retailer and, ultimately, its customers.
Hodges is scheduled for sentencing on May 3, 2023, before Senior United States District Judge John T. Copenhaver, Jr. She faces a potential prison sentence of up to 30 years, along with three years of supervised release and a hefty $750,000 fine. Beyond potential incarceration, Hodges is obligated to pay full restitution of $38,570.78 to cover the losses incurred by Kroger.
United States Attorney Will Thompson announced the guilty plea, praising the relentless work of the Secret Service agents who untangled this complex fraud. Assistant United States Attorneys Kristin F. Scott and Ryan A. Keefe are prosecuting the case. Court documents related to Case No. 2:22-cr-223 are available on PACER, and a full press release can be found on the U.S. Attorney’s Office website for the Southern District of West Virginia.
Related Federal Cases
- Karen L. Hodges, Securities Fraud, West Virginia 2024 · Kentucky
- WesBanco Bank, Inc., Merger, West Virginia 2023 · Kentucky
- FDIC Approves Bank Merger for WesBanco, West Virginia 2025 · Kentucky
- Brian McDevitt, Healthcare Fraud, West Virginia 2024 · Kentucky
- Ballester Caser, Bank Fraud, West Virginia 2023 · West Virginia
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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