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January 9, 2012

Department of Justice

United States Attorney William C. Killian Eastern District of Tennessee


David Bare And Kendra Walker Sentenced For Carter County Fake Inheritance Scheme

GREENEVILLE, Tenn. – David Michael Bare, 53, and Kendra Lynnae Walker, 41, of Elizabethton, Tenn., were sentenced in U.S. District Court for the Eastern District of Tennessee at Greeneville, by the Honorable J. Ronnie Greer, U.S. District Judge. David Bare was sentenced to serve 37 months in prison and three years supervised release. Additionally, he was ordered to pay $511,513 in restitution to the victims of the wire fraud scheme, $41,000 restitution to the Internal Revenue Service (IRS), and $200 in special assessments. David Bare and his wife Stephanie Bare both pleaded guilty to wire fraud and tax fraud.

Kendra Walker, who pleaded guilty to aiding and abetting wire fraud, was sentenced to serve five years on probation and perform 150 hours of community service. Additionally, she was ordered to pay $15,000 in restitution to the victims of the wire fraud scheme and $100 in special assessments.

On January 3, 2012, Judge Greer sentenced Stephanie Bare to serve 46 months in prison and three years supervised release. Additionally, she was ordered to pay $511,513 in restitution to the wire fraud victims, $42,000 restitution to the IRS, and $200 in special assessments.

The Bares concocted an elaborate fake inheritance scheme which bilked family, friends, and business associates in Carter County, Tenn., of more than $500,000. Many of the wire fraud victims were elderly and especially vulnerable. The scheme involved false allegations of IRS collection activity. The Bares recruited Walker to impersonate an IRS officer in order to bolster their scheme.

The indictment and subsequent convictions of the Bares and Walker were the result of a year long investigation conducted by IRS, Criminal Investigation and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Helen Smith represented the United States.

William Killian, U.S. Attorney, noted, “This scheme harmed vulnerable individuals and devastated their lives, as well as violated federal law, meriting special attention by federal law enforcement officers. The Bares continued their scheme even after the IRS Special Agent advised them to cease and desist. The United States will always prosecute cases such as these.”

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