Lachann Alexis Green, Wire Fraud, Maryland 2017

Greenbelt, Maryland – In a shocking case of corporate deceit, Lachann Alexis Green, 36, of Laurel, Maryland, pleaded guilty to the federal charge of wire fraud in connection with a scheme to defraud her employer, causing a loss to the business of at least $285,703.09.

According to the plea agreement, from October 2017 through December 2018, Green was the general manager of Rhode Island Row, an apartment complex in Washington, D.C. that was managed by Business 1, her employer. As General Manager of the apartment complex, Green was the senior employee of Business 1 on site at Rhode Island Row and was responsible for all expenses and staffing needs for the apartment complex.

During her time as General Manager, Green used her position to defraud Business 1 in at least four different ways. First, in October 2017, Green registered a fraudulent shell business, “Executive Property Staffing” (“EPS”), with the Maryland State Department of Assessments and Taxation (“SDAT”). Green admitted that she created dozens of fraudulent EPS invoices for staffing, cleaning, and maintenance work at Rhode Island Row that had not been done by EPS.

The money that Business 1 paid on the invoices was generally sent to a bank account opened in EPS’s name but which was controlled by Green. Over the course of the scheme, Green submitted and Business 1 paid $231,802 in fraudulent EPS invoices.

As detailed in her plea agreement, although Green had acknowledged and agreed to Business 1’s policy against self-dealing and conflicts of interest as part of her employment, Green took steps to conceal her ownership of EPS and did not disclose her association with EPS to her employer. For example, Green e-mailed a forged W-9 form to get EPS set up in Business 1’s vendor payment system, which she signed using a relative’s name.

In addition to the EPS scheme, Green leased two Rhode Island Row apartments to her relatives under false names and at favorable terms not generally available to others. By the time her fraud was discovered, the two relatives had both failed to pay rent for months, costing Business 1 a total of $39,524 in uncollected rent.

Green also admitted to submitting fraudulent invoices to her employer for expenses that she falsely claimed she had paid out-of-pocket on Business 1’s behalf. Generally, these invoices falsely claimed that Green had arranged and paid for catering services for events at Rhode Island Row.

The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.

Lachann Alexis Green, 36, of Laurel, Maryland, pleaded guilty to the federal charge of wire fraud in connection with a scheme to defraud her employer, causing a loss to the business of at least $285,703.09. The exact date of the crime is not specified, but the scheme occurred from October 2017 through December 2018.

The outcome of the case is still pending, but Green faces a minimum of prison time for her crimes. The case is a stark reminder of the dangers of corporate deceit and the importance of transparency in business dealings.

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