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Defendants Caught in Web of Deceit
Houston-based Chase Power Development’s former leadership, Kathleen Smith and John Upchurch, have pleaded guilty to conspiracy to commit mail and wire fraud, announced U.S. Attorney Kenneth Magidson. Smith entered her plea today, while Upchurch entered his plea earlier this month.
According to the investigation, Smith and Upchurch embezzled a significant amount of money from Chase Power between June 2008 and June 2012. The duo submitted false invoices for fake projects to receive company funds for their personal expenses, including personal travel, hotels, country club memberships, personal car restoration, fishing equipment, and a hunting trip.
The defendants used their company American Express credit cards for personal purchases. They would segregate their illegitimate American Express expense account summaries and self-approve them for payment on personal items and expenditures.
The investigation, conducted by the FBI, revealed that Smith and Upchurch either mailed company checks upon issuance or personally took the checks to the merchants. U.S. District Judge Sim Lake accepted the pleas and has set sentencing for April 2017. At that time, both face up to 5 years in federal prison and/or a maximum possible $250,000 fine.
They were permitted to remain on bond pending sentencing. Assistant U.S. Attorney Suzanne Elmilady is prosecuting this case.
The energy project, headed by Chase Power in Corpus Christi, was initially set up by Houston-based Quintana Capital Group. Upchurch was hired as CEO and Smith as president in July 2008.
The case against Smith and Upchurch serves as a cautionary tale of the devastating consequences of corporate greed and the importance of accountability in the business world.
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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