STATESVILLE, N.C. – Frank Alton Moody, II, the former Chairman of CenterCede Services Inc., was today sentenced to 30 months in federal prison for orchestrating a grand conspiracy that stole over $2 million from client companies, announced U.S. Attorney Jill Westmoreland Rose.
In addition to the hefty sentence, Moody must serve two years of supervised release and pay nearly $2.15 million in restitution. His co-conspirators, Jerry Wayne Overcash and John Bernard Thigpen, were previously sentenced to 46 and 21 months respectively for their roles in the crime.
According to court documents, Moody, who also served as Chairman at TRSG before its IRS shutdown, was at the helm of CenterCede from November 2010 to November 2011. The payroll services company collected funds from clients but failed to pay federal taxes and other obligations as agreed.
The conspirators allegedly siphoned off client funds to cover their own salaries and liabilities, while maintaining a facade of solvency by paying ‘priority’ clients ahead of others. Moody pleaded guilty in October 2016, admitting to conspiracy charges.
Moody’s sentence is without parole, and he will serve his time upon the designation of a federal facility. The investigation was led by the U.S. Postal Inspection Service (USPIS) and the Internal Revenue Service Criminal Investigation Division (IRS-CI), with Assistant U.S. Attorneys Corey F. Ellis and Taylor J. Phillips prosecuting the case.
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Key Facts
- State: North Carolina
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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