BIRMINGHAM—A Pelham man pleaded guilty
today in federal court to money laundering in a scheme with his daughter that
collected more than $400,000 for expenses of a lawsuit that never existed,
announced U.S. Attorney Joyce White Vance, Alabama Securities Commission
Director Joseph P. Borg, IRS-Criminal Investigation Special Agent in Charge
Donald B. Yaden, and FBI Special Agent in Charge Patrick J. Maley.
Paul Haskell Lane, Jr., 69, entered his
plea before U.S. District Judge C. Lynwood Smith, Jr. Lane is scheduled for
sentencing November 14.
“Today’s guilty plea represents the
culmination of years of hard work by my office and our federal and state
partners,” Vance said. “Tenacious work by the IRS, FBI, and Alabama Securities
Commission made it possible for us to secure this guilty plea,” she said.
“The Alabama Securities Commission was
proud to be an integral part of the investigation and legal aspects of this
case and to work as a close partner with the U.S. Attorney’s Office, the IRS,
and the FBI,” Borg said. “The combined resources and hard work by all agencies
has promoted justice and led to this guilty plea.”
“Mr. Lane exploited his family, friends,
and neighbors by perpetrating a scheme that was based entirely on lies,” Yaden
said. “The plea today is Mr. Lane’s opportunity to admit to the deception and
face the consequences of his actions.”
Lane’s guilty plea caps a six-year
investigation and prosecution effort by federal and state authorities. In late
2009, Lane and his daughter, Katherine Hope Lane, 28, were separately indicted
for wire fraud, mail fraud, and money laundering for their roles in a plan to
get people in other states to wire money to Lane’s bank account. Those who sent
money were led to believe it would go toward costs for a personal-injury
lawsuit filed by the Lane family after Katherine Lane suffered a brutal assault
at work.
The Lanes represented that proceeds from
the lawsuit would be used to repay people who donated. Most who provided money
also believed that they would get back from the Lanes more money than they
sent. Katherine Lane, however, was never assaulted, and the Lanes had never
filed a lawsuit.
Over the course of several years, Lane
took the money that was wired into his account and gave it to his daughter. He
acknowledged those actions in his money laundering plea and agreed to pay
$343,900 in restitution, which is expected to go toward repaying those who sent
money.
Katherine Lane pleaded guilty in 2010 to
wire fraud, aggravated identity theft, and money laundering. She was sentenced
in 2011 to seven years and three months in federal prison. Katherine Lane also
pled guilty to felony state securities fraud charges related to her actions.
Her sentence of seven years and three months on the state charges was ordered
to run concurrently with the federal sentence.
The Internal Revenue Service, the FBI,
and the Alabama Securities Commission investigated the case. Assistant U.S.
Attorney Melissa K. Atwood prosecuted the case.
No comments:
Post a Comment