Federal Indictment Charges Three Defendants with Fraud of $1.1 Million Dollars
Wire Fraud, Money Laundering and Bankruptcy Fraud Charges
PORTLAND, Ore. - The U. S. Attorney's Office announced the indictment and arrest of Robert Keys, 63, Fossil, Oregon, his long-time bookkeeper Brenda Carper, 61, Gresham, Oregon, and William Kearney, 67, of Gulf Breeze, Florida, on charges of wire fraud, money laundering, and bankruptcy fraud. Keys and Kearny were charged with defrauding a long-term investment client of Keys, who was over 80 years old at the time of the fraud, of $1.1 million.
The indictment alleges that Keys received a kickback of $150,000 from money obtained from his elderly client and then wired to his business partner, Kearney. Keys and Kearney were charged with two counts of wire fraud and two counts of money laundering. Wire fraud charges carry a maximum sentence of 20 years for each count and a fine of up to $250,000 per count. The money laundering charges carry a maximum ten year sentence per count and a $250,000 fine per count.
Defendant Keyes is scheduled to appear before U.S. District Judge Hernandez today at 1:30 p.m. in the Mark Hatfield Courthouse in Portland, Oregon. Carper and Kearney both made initial appearances on Thursday, June 28th. After entering a plea of not guilty, the defendants have been released with a trial date of August 28, 2012.
Keys and Carper were charged with seven counts of bankruptcy fraud relating to the effort of Keys to discharge $148 million in debt in his personal bankruptcy. They were charged with lying to the bankruptcy court and concealing assets and income of Keys. Each bankruptcy fraud charge carries a five year sentence and a $250,000 fine.
An indictment is only an accusation of a crime, and a defendant should be presumed innocent unless and until proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the United States Trustees' Office. The case is being prosecuted by Assistant U. S, Attorney Allan M. Garten.