former joplin man pleads guilty to fraud
related to tornado benefits
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Joplin, Mo., man pleaded guilty in federal court today to his role in a wire fraud scheme following the May 22, 2011 tornado.
Christopher L. Smith, 36, of Memphis, Tenn., formerly of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a June 11, 2013, federal indictment.
Smith admitted that he assisted another person to defraud the Economic Security Corporation of Southwest Area in Joplin. The not-for-profit corporation administered a rental assistance program, the Missouri Housing Trust Fund (MHTF) Disaster Relief Program. This program disbursed funds to landlords who rented to clients who had been displaced by natural disasters, including the May 22, 2011 tornado that struck Joplin.
Smith assisted in the wire fraud scheme in two fraudulent transactions. In June or July 2012, Smith signed two MHTF program applications as landlord/property manager/mortgagee, which was false and fraudulent in that Smith then knew he was not a landlord, property manager, or mortgagee entitled to receive MHTF program funds. Based on the false application, the Economic Security Corporation issued a $1,850 check to Smith on June 21, 2012, and a $2,085 check to Smith on July 26, 2012. The financial loss resulting from Smith’s conduct and for which Smith must pay restitution totals $3,935.
On Aug. 21, 2013, co-defendant John L. Williams, 31, of Memphis, Tenn., formerly of Joplin, pleaded guilty to his role in the scheme. Williams, who was not a landlord or property manager of Economic Security Corporation clients, conspired with others to submit fraudulent applications for rental assistance. Williams assisted in the scheme by serving as a purported landlord on two fraudulent applications for rental assistance, and also by accompanying other check recipients to the bank to cash their checks, in order to collect the proceeds of the fraud.
The Economic Security Corporation issued two rental assistance checks to Williams totaling $3,050. The total financial loss from the wire fraud conspiracy totaled $8,565.
Under federal statutes, Smith and Williams are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Missouri State Highway Patrol.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
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