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Glen Carbon Man Sentenced to 42 Months in Prison for Defrauding Victims
Glen Carbon, IL – Kenneth J. Lee, 54, of Glen Carbon in Madison County, Illinois, has been sentenced to 42 months in prison for defrauding victims.
According to the United States Attorney for the Southern District of Illinois, Donald S. Boyce, Lee was sentenced on June 9, 2017, based on his guilty plea to a six-count information charging conspiracy to defraud, criminal contempt of court, mail fraud, making false statements, and aggravated identity theft.
The Court also ordered Lee to pay approximately $525,000 in restitution to victims of his fraud schemes.
In January 2006, Lee pled guilty in United States District Court for the Eastern District of Missouri to charges of mail fraud and failing to file taxes. He was sentenced to prison, ordered to pay over $580,000 in restitution to his ‘Ponzi’ scheme victims, and serve three years of supervised release after imprisonment.
After his release from prison, Lee began serving his period of supervision in the Southern District of Illinois. However, he violated the 2006 order to repay his victims by failing to report to United States Probation and the United States Attorney’s Financial Litigation Unit, income and assets, that should have been used for restitution.
At his plea, Lee admitted to utilizing various entities, names, and ruses to conceal and disguise business dealings and assets. He made false statements, created false documents, failed to comply with the order of the United States District Court for the Eastern District of Missouri, and committed aggravated identity theft.
United States Attorney Donald S. Boyce praised the investigative efforts of federal law enforcement and the supervision efforts of United States Probation. ‘The victims of this defendant have waited over 10 years for their savings to be paid back by a man who has worked tirelessly to continue his deception and fraud against his victims and the government’s efforts to get their money back.’
‘Those who engage in this type of fraud should know they will not go undetected and will be held accountable,’ said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation.
The investigation was conducted by the Internal Revenue Service, Criminal Investigation, and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Key Facts
- State: Illinois
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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