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July 25, 2008

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2 County Women Plead Guilty To Different Financial Frauds

Published: 12:42 PM, 05/13/2008
 


Source: The Greeneville Sun

One Case Involved

Pension Benefits;

Other Case Involved

Embezzlement

By BILL JONES

Staff Writer

Two Greene County women pleaded guilty in U.S. District Court on Monday to unrelated federal crimes involving financial frauds.

Janice Carol Harrell, 67, of Mosheim, waived indictment, and pleaded guilty to a one-count information charging her with converting to her own use money she had obtained through the fraudulent payment of Department of Veterans Affairs pension benefits, according to court records, during an appearance before U.S. District Judge Ronnie Greer.

She faces a maximum sentence of up to 10 years in prison and a fine of up to $250,000, according to court documents.

Harrell was released, with conditions pending a sentencing hearing scheduled for Sept. 22 at 1:30 p.m.

Christy Marshall Pleads

Christy Nicole Marshall, 31, of Limestone, also waived indictment during a Monday appearance before U.S. District Judge Ronnie Greer and pleaded guilty to a one-count information charging her with embezzlement by an agent or employee of an insurance business affecting interstate commerce.

She was released, subject to conditions, pending a sentencing hearing scheduled for Sept. 22 at 1:30 p.m.

At sentencing, Marshall faces a statutory maximum of up to 10 years in federal prison, up to three years on supervised probation, a fine of up to $250,000 and a mandatory assessment of $100.

Harrell Background

The plea agreement in Harrell's case said she "unlawfully received death pension benefits from the United States Department of Veterans Affairs for more than 16 years due to her failure to report ... that she had remarried in November 1990, ending her eligibility for such benefits."

Harrell, according to the plea agreement, married Earl W. Morton, a World War II veteran. After Morton died in May 1988, Harrell applied for, and received death benefits as Morton's surviving spouse, according to the plea agreement.

But on Nov. 21, 1990, she married David L. Harrell in Sevier County, Tenn.

"The defendant did not report the marriage ... and continued to receive pension benefits," the plea agreement said. "The defendant submitted eligibility verification reports to DVA in May 1991, June 1992, May 1993, June 1994 and April 1996 in which she falsely reported that she had not remarried and that she had no income."

Court documents also alleged that Harrell failed to report income that she received as a substitute school teacher beginning in 2002.

Marshall's Background

Marshall, according to court documents, was employed by the Tennessee Farmers Mutual Insurance Company at its Chuckey district office as a claim representative "from 2004 until her termination in November 2007," court documents said.

As a claim representative, the government alleges in court documents, Marshall was authorized to issue checks in payment for insurance claims arising from automobile accidents.

"After issuing a check in payment of a claim, the defendant would have the retained copies of such checks placed in claim files, along with the supporting documentation for the insurance checks ... for automobile repairs, medial bills and car-rental receipts.

"From on, or about January 2005 through September 2007, the defendant (Marshall) caused to be issued approximately 19 checks for fictitious payments on claim files to embezzle approximately $28,686.38 ... from Tennessee Mutual Farmers Insurance Company," court documents allege.

As part of the embezzlement scheme, according to court records, Marshall used checks "signed in blank by another claim representatives," then had checks issued in her name ... "purportedly for a claim which had already been paid and closed."

Specifically, according to court records, on Sept. 19, 2007, Marshall had a check issued "in the amount of $5,974.48 and made payable to Daniel Marshall, a fictitious payee, purportedly in payment of a claim that ... she knew to be false and fictitious."

She subsequently converted those funds to her own use, according to court documents.

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