A. COURTNEY COX, UNITED STATES ATTORNEY

Nine Executive Drive, Fairview Heights, Illinois 62208, Telephone (618) 628-3700

For Immediate Release June 26, 2009

GLEN CARBON RESIDENTS SENTENCED ON FRAUD CONVICTIONS

A. Courtney Cox, United States Attorney for the Southern District of Illinois, announced today that on June 26, 2009, STACIE M. GARY, age 31, of Glen Carbon, was sentenced following her conviction on one count of employment benefits fraud and four counts of bankruptcy fraud by the United States District Court in East St. Louis. On the same date, her former husband, KEITH A. GARY, age 33, also of Glen Carbon, Illinois, was sentenced on three counts of bankruptcy fraud. STACIE M. GARY, who pled guilty on January 13, 2009, was sentenced to twenty-one (21) months’ imprisonment and three

(3) years of supervised release. The court also ordered her to pay restitution to the victims in the amount of $44,642.20 and a special assessment of $500. KEITH A. GARY, who had entered pleas of guilty on March 23, 2009, was sentenced to twelve months and one day of imprisonment and three (3) years of supervised release. The court also ordered him to pay joint and several restitution to the victims in the amount of $33,892.20 and a special assessment of $300.

The indictment to which the Defendants pled guilty alleged that the Defendants deliberately concealed information on a pending workers’ compensation claim from the United States Bankruptcy Court for the Southern District of Illinois in East St. Louis and the bankruptcy trustee. Additionally, the indictment alleged that STACIE M. GARY used the United States mails to file false claims for benefits to the Illinois Department of Employment Security during times when she was actually employed.

The United States Attorney emphasized, “It is essential, especially during these difficult economic times, that the citizens of this country have confidence that our bankruptcy system works fairly for all Americans. The United States Attorney’s Office will continue to vigorously prosecute those who, through fraud or other illegal activity, attempt to undermine the integrity of that system.”

Nancy J. Gargula, the United States Trustee for Indiana and the Central and Southern District of Illinois (Region 10) stated, “I am gratified by the actions taken by United States Attorney Courtney Cox and the members of the Bankruptcy Fraud Working Group for Southern Illinois. The bankruptcy laws make it clear that all property, including pending claims, must be disclosed to the Bankruptcy Court, the trustee and the creditors.”

The case was investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering, and the Federal Bureau of Investigation. The case was initiated out of the Southern District of Illinois’ Bankruptcy Fraud Working Group, which is coordinated by Assistant United States Attorney Gerald M. Burke, and which includes representatives of the Office of the United States Attorney; Office of the United States Trustee; the Federal Bureau of Investigation; the Department of Housing and Urban Development; the Internal Revenue Service, Criminal Investigation; and the Postal Investigation Service. The case was prosecuted by Assistant United States Attorney Liam Coonan and Special Assistant United States Attorney Mark D. Skaggs, who is a Trial Attorney with the U.S. Department of Justice’s Office of the United States Trustee in Peoria.