KANSAS CITY, MO – Freya Pearson, 44, of Conyers, Georgia, formerly of Kansas City, Missouri, is trading the high life for a federal prison cell. U.S. District Judge Beth Phillips sentenced Pearson to five years behind bars today for a cold-hearted scheme that robbed a vulnerable lottery winner of $440,000, contributing to a total loss exceeding $640,000. Pearson won’t be eligible for parole.
The fraud unfolded after the victim, a 61-year-old woman who previously worked as a housekeeper and relied on disability, struck it rich with a $2.4 million Missouri Lottery win in 2008. After responsibly setting aside funds for taxes, a home for herself and her daughters, and establishing an annuity for a $30,000 annual income, she fell prey to Pearson’s manipulative tactics. Pearson posed as a friend and financial advisor, convincing the victim to transfer her life-changing winnings into the coffers of a newly-formed nonprofit, Recidivism at Work (RAW). RAW, it turned out, was a phantom organization – created the day before the first wire transfer hit its account.
The evidence revealed Pearson didn’t use the money to help anyone but herself. While promising financial guidance, Pearson immediately began funneling the funds into a personal slush fund. Over $96,000 went straight to gambling, followed by $12,000 in travel expenses, and a fleet of luxury vehicles – a Cadillac Escalade, a Pontiac Sunfire, and a Chevrolet Tahoe. Restaurants, shopping sprees, and other lavish purchases quickly followed. Pearson initially made token payments of around $1,200 per month to the victim for just over a year, before abruptly cutting off the flow of money, leaving the woman financially ruined and forced to take out a reverse mortgage to keep a roof over her head.
The deceit didn’t stop there. While fleecing her victim, Pearson was also defrauding the federal government. In March 2010, she applied for Section 8 housing benefits with the Weston Housing Authority, claiming she was unemployed and homeless. This lie secured her a duplex in Kansas City-North, with the housing authority covering $875 of the $1,075 monthly rent. Pearson continued to collect these benefits for over two years, even after relocating to Orange County, California, until her fraud was discovered in 2014, totaling $76,837 in illicit gains. She also began receiving welfare and/or food stamp benefits in 2011.
Pearson was convicted on October 27, 2016, after a trial, on three counts of wire fraud, four counts of money laundering, one count of tax evasion, and one count of making false statements to the Department of Housing and Urban Development. Judge Phillips ordered Pearson to pay $640,667 in restitution to her victims, a meager attempt to repay the damage she inflicted. Tammy Dickinson, United States Attorney for the Western District of Missouri, announced the sentencing, a stark reminder that exploiting the vulnerable and defrauding the system will carry severe consequences.
The case highlights a disturbing pattern of predatory behavior. Pearson targeted a woman who had finally achieved a measure of financial security, only to systematically dismantle it for her own selfish gain. The fact that she simultaneously exploited federal assistance programs while enriching herself through fraud demonstrates a callous disregard for the law and a profound lack of empathy. This sentencing sends a message: preying on the hopes and dreams of others won’t pay – it will land you in prison.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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