FOR IMMEDIATE RELEASE	CONTACT: Lauren Horwood
April 21, 2011	PHONE: (916) 554-2706
www.usdoj.gov/usao/cae	usacae.edcapress@usdoj.gov

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced today that a federal grand jury returned a nine-count indictment charging Bruce Lee Cearlock, 74, of Auburn, with theft of government money, mail fraud, and making false statements.

This case is the product of an investigation by the Department of Defense, Defense Criminal Investigative Service (DCIS), Sacramento; the Naval Criminal Investigative Service (NCIS); and the United States Department of Labor. Assistant United States Attorney Kyle Reardon is prosecuting the case.

According to the indictment, starting no later than August 2005, Cearlock made false statements about his employment and income that caused him to receive over $210,000 in government workers' compensation benefits under the Federal Employees' Compensation Act to which he was not entitled. He is alleged to have falsely stated that he was not involved in any business enterprise and that he was unemployed between the years 2005 and 2009, when in fact, he was an owner and officer of Alleycorp Inc., which operated the Fuse nightclub in San Francisco.

The maximum statutory penalty for theft of government property is 10 years in prison, a fine of $250,000, and up to three years of supervised release. The maximum sentence for mail fraud is 20 years in prison, a fine of $250,000, and a three-year term of supervised release. The maximum sentence for making false statements is five years in prison, a fine of $250,000, and a three-year term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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