Defendant Pleads Guilty in $1,000,000 HUD-Funded
Property Management Scheme
Memphis, TN - Ann Edwards, 38, a former employee of Associated Realty Services, Inc. (ARS), pleaded guilty on November 10, 2010 in federal court to a felony charge of bank fraud announced Edward L. Stanton, III, United States Attorney for the Western District of Tennessee. According to the Indictment, from May 2004 until May 2008, Edwards, working as an accounting specialist for ARS -- a private management firm under contract to manage several HUD-funded apartment complexes in Shelby County, Tennessee -– embezzled approximately $1,000,000 from ARS bank accounts. Edwards manipulated accounting software programs to issue checks made out to her maiden name, Ann Woods, and to falsely reflect that these checks were going to legitimate vendors of the complexes. During the relevant time period, Edwards forged authorizing signatures on approximately 500 checks totaling approximately $1,000,000 and deposited the checks into her own bank accounts. Edwards would then use these funds for her own personal benefit and gain– including numerous casino cash withdrawals.
United States Attorney Edward L. Stanton, III stated: “Our office is continuing its work with the Secret Service to bring to justice those involved in bank fraud and other financial crimes. We will continue to prosecute to the fullest extent of the law those individuals who unlawfully embezzle funds for their own personal gain.”
Edwards faces a maximum of 30 years in jail when Judge Bernice Donald sentences her on February 16, 2011.
The case was investigated by the United States Secret Service and is being prosecuted by Assistant United States Attorney Stephen Hall.
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