NEW ORLEANS, LOUISIANA – Ritchel Morehead, 40, of Covington, Louisiana, isn’t building a financial empire – she’s facing up to two decades in federal prison after admitting to a cold-blooded wire fraud scheme that ripped off six victims for a total of $460,000. The U.S. Attorney’s Office for the Eastern District of Louisiana announced Morehead’s guilty plea this week, bringing a measure of closure to a case that exposed a blatant disregard for financial trust.
Between December 2018 and February 2019, Morehead operated through a shell corporation, Chel Corporation, promising to secure multi-million-dollar loans for her victims. But the loans were a phantom. Instead of utilizing the funds for legitimate fees, costs, and down payments as promised, Morehead allegedly siphoned the $460,000 into a lavish lifestyle. Court documents detail a spree of personal expenses, including jewelry, a new vehicle, and the transfer of significant sums to offshore accounts – a classic move for those attempting to conceal ill-gotten gains.
Federal investigators, spearheaded by Homeland Security Investigations and the U.S. Secret Service, quickly zeroed in on the discrepancies. The government filed a superseding bill of information detailing the fraudulent activity, and Morehead ultimately pleaded guilty as charged. As part of a plea agreement, she’s agreed to full restitution of the $460,000 stolen from the victims. While the feds have already seized $190,784.90 in cash and assets, the remaining amount remains outstanding.
The scope of Morehead’s greed is staggering. She faces a maximum sentence of twenty years behind bars, followed by a potential three years of supervised release. On top of that, she could be slapped with a fine of up to $250,000, or twice the gross gain she made from the scheme, whichever is greater. A mandatory $100 special assessment fee will also be levied. It’s a hefty price to pay for turning trust into theft.
U.S. Attorney Duane A. Evans praised the collaborative effort of the investigative agencies, highlighting the importance of interagency cooperation in combating financial crimes. Assistant United States Attorney Nicholas D. Moses is leading the prosecution, ensuring Morehead is held accountable for her actions. The case serves as a stark reminder that those who exploit financial systems for personal gain will face the full force of the law.
The Honorable Martin L. C. Feldman has scheduled Morehead’s sentencing for April 6, 2022. Until then, she remains free, but under the shadow of a looming prison sentence. This case underscores the Secret Service’s evolving role beyond protecting dignitaries – they are now key players in dismantling complex financial fraud operations that prey on vulnerable citizens.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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