RUDY, ARKANSAS MAN AND WOMAN EACH SENTENCED TO ELEVEN YEARS AND THREE MONTHS FOR DEFRAUDING THOUSANDS OF VICTIMS OF $4 MILLION
FOR IMMEDIATE RELEASE
October 16, 2012
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District
of Arkansas, announced that Sharon Henningsen, age 68, and Timothy Donavan, age 64, both of
Rudy, Arkansas, were each sentenced to 135 months imprisonment and three years supervised
release for defrauding thousands of victims out of $4 million. Henningsen and Donavan were also
each fined $250,000, given a special assessment of $1,900, and ordered to pay $5,329.99 in
restitution to victims. The sentence was handed down on October 15, 2012 by Chief Judge P.K.
Holmes, III in the United States District Court for the Western District of Arkansas.
United States Attorney Eldridge commented, “I am grateful for the coordinated work of the
United States Postal Inspection Service and the members of this office to bring these individuals to
justice. Our office will continue to protect the assets of hardworking Americans and vigilantly pursue
swindlers like Henningsen and Donavan.”
According to court documents, Henningsen and Donavan conducted a letter-stuffing scheme
that resulted in over 21,000 individuals from across the United States mailing checks or money
orders to them from 2005 to 2007, thus resulting in a loss of $4 million to the victims. The
Defendants’ scheme consisted of mailing false and misleading solicitation letters to more than one
million people throughout the United States inviting them to buy materials to stuff and mail
envelopes to make money while working from home. The letters stated that a person could earn up
to $2,900 to $5,000 or more weekly by purchasing the envelope-stuffing program for prices ranging
from $59 to $149. In fact, no individuals other than the Defendants profited from the scheme. The
two defendants conducted these schemes out of their home in Rudy, Arkansas and under various
names including Home Business Systems, Trail Head Options, and Premier Solutions.
Henningsen and Donavan were originally indicted on January 25, 2012. After a four day jury
trial in Fort Smith, they were found guilty on June 14 of one count of conspiracy to commit mail
fraud and eighteen counts of mail fraud.
This case was investigated by the United States Postal Inspection Service. Assistant United
States Attorney Kyra E. Jenner prosecuted the case for the United States.