A former associate pastor in Fort Smith, Arkansas, has pleaded guilty to a scheme that defrauded investors out of approximately $200,000.
Thomas Edward James, 34, of Phoenix, Arizona, was a part-time associate pastor at St. James Missionary Baptist Church in Fort Smith.
He was previously employed as a broker for Merrill Lynch, but was terminated for lack of production. His broker license went inactive on September 3, 2010.
James was not registered with the Arkansas Securities Department as a broker, dealer, agent, or in any other capacity since he was terminated from Merrill Lynch.
After his termination from Merrill Lynch, James continued to sell securities to investors and misappropriated the investors’ funds.
As part of his scheme, James approached potential investors, a majority of whom were retired and members of St. James Missionary Baptist Church, with proposals to make investments through him.
James then fraudulently induced investors to invest funds through false representations that their funds would be invested in a U.S. Treasury Bond, which were insured and guaranteed by the full faith and credit of the United States Government.
However, James did not invest the funds in a U.S. Treasury Bond, but instead converted the funds to his personal use.
The scheme also involved James sending statements to investors via U.S. Mail providing investors with false assurances that their funds had been invested in U.S. Treasury Bonds.
As a result of the scheme to defraud, James defrauded investors of approximately $200,000.
During a deposition, James admitted that the funds were never invested in a U.S. Treasury Bond, but were placed in his personal account.
Additionally, James admitted that he filed false tax returns from 2008-2012, and that he owed the United States additional taxes in the amount of $205,566.46.
The case was investigated by The Internal Revenue Service (IRS), the Federal Bureau of Investigation (FBI), and Financial Crimes Task Force officers from the Fort Smith and Fayetteville Police Departments.
Assistant United States Attorney Mark Webb prosecuted the case for the United States.
Today, James pleaded guilty to one count of Mail Fraud and one count of Making a False Tax Return in the United States District Court in Fort Smith.
The Honorable Chief Judge P.K. Holmes, III, accepted the plea.
Mandatory Facts:
Defendant/Respondent: Thomas Edward James
Criminal Charges: Mail Fraud and Making a False Tax Return
City and State: Fort Smith, Arkansas
Exact Date: Not specified
Sentence or Outcome: Not specified
Dollar Amounts: $200,000 and $205,566.46
Related Federal Cases
- George Herman Ruth, Mail Fraud, Tennessee 2024 · Washington
- Paul Petersen, Adoption Fraud, Arkansas 2024 · Washington
- James Edward Langford IV, Counterfeit Federal Reserve notes, Florida 2017 · Florida
- Letitia James, Civil RICO Lawsuit, New York 2023 · Illinois
- Letitia James, Defamation Lawsuit, New York 2022 · Illinois
Key Facts
- State: Arkansas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News