June 19, 2012
Department of Justice
United States Attorney William C. Killian Eastern District of Tennessee
Land of Convicted Financial Fraudster Being Sold to Benefit Victims
KNOXVILLE, Tenn. - The U.S. Attorney’s Office is moving forward to execute on a criminal judgment against Maynardville resident Joan Black, sentenced in February 2012 to serve 30 months in prison and pay restitution to the victims of her counterfeit securities and money laundering crimes.
The real property in Maynardville, Tenn., will be sold to recover funds for the benefit of Black’s victims. The U.S. Attorney’s Office sought and obtained from the U.S. District Court a Writ of Execution directing the U.S. Marshal to sell the vacant property located at 129 Remington Drive, Lot 18, Twisted Gables Subdivision, Maynardville, Tenn.
The net proceeds of the sale will be paid through the court to Black’s individual victims. Black pleaded guilty to soliciting investors to purchase annuities through her company, Benefit Capital, Inc. Black told investors that the annuities were issued by an insurance company in Galveston, Tex., and were guaranteed to pay an annual interest rate of 10 percent. She admitted that the annuities she was marketing were bogus and not issued by the insurance company. Black defrauded her victims by printing fictitious annuity portfolios bearing the name and corporate logo of the Galveston insurance company. Black was paid approximately $673,500 by five different individual investors, and she deposited the funds into a bank account that she controlled and used the funds for her own personal use. Black is currently serving the 30-month sentence.
U.S. Attorney William C. Killian said that execution of the judgment by sale of the Maynardville property will ensure that Black is not allowed to retain assets that can be used to reimburse victims for their losses, even if the recovery is only a small portion of the total restitution obligation. “Our mission is a global law enforcement approach. We not only seek to protect the public by seeking significant terms of imprisonment for convicted criminals but also seek to restore the victims to the fullest extent possible,” said Killian. “Collection of restitution for the benefit of the victims is an important part of our mission.”