Press Releases
LACOMBE WOMAN CHARGED WITH DEFRAUDING THE GOVERNMENT; HUSBAND CHARGED WITH MISPRISION
October 30, 2009
FOR IMMEDIATE RELEASE
DENISE GIBBONS-STOBAUGH, a resident of Lacombe, Louisiana, was charged today in a bill of information with theft of government funds in connection with a Small Business Administration disaster loan and a Louisiana Road Home Program fund grant, announced U.S. Attorney Jim Letten. The defendant’s husband, Keith Stobaugh, a resident of Lacombe, Louisiana, was charged in the same bill of information with Misprision of a Felony.
The bill of information alleges that in 2005, DENISE GIBBONS-STROBAUGH applied for a low interest disaster relief loan from the U. S. Small Business Administration (SBA) based on damage purportedly suffered by their home as a result of Hurricane Katrina. Based on the application and representations about the damage, the SBA granted the defendants a low interest disaster loan of $38,800 in governmental funds. It is also alleged that in 2006, the defendant, DENISE STOBAUGH, applied for financial assistance from the Louisiana Road Home Program for the same purported damage their house suffered as a result of Hurricane Katrina. Based upon her application and representations, the LRHP approved an award of $150,000 in funds belonging to the U. S. Department of Housing and Urban Development. The bill further alleges that although KEITH STOBAUGH was aware the applications were fraudulent, he signed them and did not report the crime to any authority. According to the bill of information, the home owned by DENISE and KEITH STOBAUGH suffered very minimal damage from Hurricane Katrina.
If she is convicted on the two counts charged against her, DENISE STOBAUGH, faces a maximum penalty of ten years imprisonment, three years supervised release, a $250,000 fine, and a $100 special assessment on each count. With respect to the defendant KEITH STOBAUGH, if convicted on the one count he is charged with, the maximum penalty he faces is three years imprisonment, one year supervised release, a $250,000 fine, and a $100 special assessment.
U.S. Attorney Letten reiterated that a Bill of Information is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case is being investigated by agents from the United States Small Business Administration, Office of Inspector General, and the United States Department of Housing and Urban Development, Office of the Inspector General. The case is being prosecuted by Assistant U. S. Attorney Matt Chester.
(Download Bill of Information 
)
