News and Press Releases

New Kensington Woman Pleads Guilty In Internet Auction Fraud Scheme

July 13, 2010

PITTSBURGH, Pa. ‑ Acting United States Attorney Robert S. Cessar announced today, July 13, 2010, that Kathy Madison of Arnold, Pennsylvania, pleaded guilty in federal court to charges of mail fraud.

Madison, age 32, of New Kensington, Pennsylvania, pleaded guilty to two counts before Senior United States District Judge Maurice B. Cohill.

In connection with the guilty plea, Assistant United States Attorney Paul E. Hull advised the court that Madison offered items for sale during internet auctions, received the buyers' payments, and then did not send the items to the buyer while still retaining their money. The indictment alleges that Madison caused a loss of $14,127.82.

Judge Cohill scheduled sentencing for November 9, 2010 at 10:00 a.m.  The law provides for a total sentence of 40 years in prison, a fine of $500,000.00, or both.  Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.

Pending sentencing, Madison remains free on bond. The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Madison.

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