Tammy Lynn Hawk, Wire Fraud, Tennessee 2021

GREENEVILLE, Tenn. – Tammy Lynn Hawk, 47, of Bristol, Tennessee, is headed to federal prison for a decade after running a classic Ponzi scheme that left a trail of financially ruined victims in its wake. Hawk was sentenced by the Honorable Clifton L. Corker in the United States District Court for the Eastern District of Tennessee on April 23, 2021, following a negotiated plea agreement.

The scheme, perpetrated while Hawk maintained a successful career as a real estate agent, preyed on clients with the promise of quick profits through “quick-flip” properties. Instead of legitimate investments, Hawk simply robbed Peter to pay Paul, using cash from new victims to cover payouts to earlier investors. Court records reveal at least 24 individuals were defrauded, with 12 ultimately left holding the bag – a combined loss exceeding $500,000. Hawk pled guilty in January 2021 to one count each of wire fraud, aggravated identity theft, money laundering, and making a false tax return.

Hawk didn’t just rely on the basic mechanics of a Ponzi scheme; she actively concealed her criminal activity. The investigation uncovered a web of false statements, fabricated real estate contracts, the use of electronic signing services for deception, and outright forgery. She even attempted to hide the scheme during a bankruptcy filing. The ill-gotten gains weren’t solely used to prop up the Ponzi scheme either – Hawk used the money to fund a lavish lifestyle, adding insult to injury for her victims.

Acting United States Attorney Francis M. Hamilton III didn’t mince words, stating, “Tammy Hawk’s fraudulent scheme not only betrayed her clients’ trust, but also caused them devasting financial harm.” Hawk will also be required to make restitution of $658,838 to her victims and $71,062 in unpaid taxes. The sentence – 10 years imprisonment followed by three years of supervised release – sends a clear message that such crimes will not be tolerated.

The U.S. Secret Service, partnering with the Bristol Police Department, played a key role in unraveling the scheme. Jason Brown, Resident Agent in Charge of the Secret Service’s Knoxville office, emphasized the importance of interagency cooperation, stating the success of the investigation “is a testament to our belief that building strong, trusted partnerships across the law enforcement community is a proven model for success.” The Secret Service underscored its commitment to combating financial crimes and protecting citizens from predatory fraudsters.

Collaboration was a recurring theme, with Second Judicial District Attorney Barry P. Staubus and Bristol Police Chief Blaine Wade both highlighting the joint effort between their offices and the U.S. Attorney’s Office and Secret Service. The federal investigation was co-led by United States Secret Service Senior Special Agent Thomas Whitehead and IRS CI Special Agent. This case serves as a stark reminder that even seemingly trustworthy professionals can be capable of devastating fraud, and that law enforcement agencies are working together to bring them to justice.

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