Former Executives Of U.S. Corporation Extradited From Britain To Face Federal Fraud Charges In Maryland
Allegedly Obtained Over $1.4 Million through Fraudulent Reimbursements
Greenbelt, Maryland – Paul Dunham and his wife, Sandra Dunham, both age 58, of Northampton, England, formerly of Montgomery County, Maryland, had an initial appearance today before U.S. Magistrate Judge William Connelly, in U.S. District Court in Greenbelt, Maryland. Yesterday, Deputy U.S. Marshals escorted the couple from England after they were extradited to face a federal indictment on conspiracy, wire fraud and money laundering charges in connection with their employment at PACE, Inc. A federal grand jury returned the indictment on December 7, 2011, and it was unsealed today. Magistrate Judge Connelly ordered that the Dunhams be detained pending a detention hearing scheduled for Tuesday, May 27, 2014, at 11:00 a.m. before U.S. Magistrate Judge Jillyn K. Schulze, in courtroom 3A, U.S. District Court in Greenbelt.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the indictment, PACE, Inc. was a Maryland corporation that produced parts for the repair and reworking of electronics for the military and others. PACE USA had a subsidiary in the United Kingdom called PACE Europe, Ltd. Paul Dunham was President and Chief Operating Officer of PACE USA and Managing Director of PACE Europe. Sandra Dunham was the Director of Sales and Marketing for PACE USA and PACE Europe. The Dunhams were provided with corporate credit cards, and also maintained personal credit cards.
The 13-count indictment alleges that between 2002 and 2009, Paul Dunham and Sandra Dunham fraudulently charged personal expenses to their corporate credit cards and submitted vouchers to PACE for reimbursement that falsely described them as business expenses. The indictment alleges that the couple also fraudulently billed PACE Europe for business expenses already paid by PACE, Inc., obtaining duplicate reimbursements. The personal expenses for which Mr. and Mrs. Dunham obtained reimbursements included furniture, a dog sofa and pet residence, weekly grocery expenses, art work, home cleaning and remodeling services, and airline tickets.
In order to conceal the scheme, the couple allegedly submitted fraudulent expense vouchers. Paul Dunham is alleged to have created, doctored, and falsified receipts and invoices to create the false appearance that they were for business, rather than personal expenses. In addition, Paul Dunham is alleged to have instructed his assistant not to reveal records related to personal purchases made by himself and Sandra Dunham.
Finally, the indictment seeks the forfeiture of $1.4 million, alleged to be the proceeds of the scheme.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney David I. Salem and Special Assistant U.S. Attorney Paul K. Nitze, who are prosecuting the case, and the Office of International Affairs and the U.S. Marshals Service for their assistance in this case.