Former Dunavant Employee Admits To Fraud
Memphis, TN – Edward L. Stanton, III, United States Attorney for the Western District of Tennessee, announced today that Jennifer Lynn McCage, age 39, of Cordova, Tennessee, pleaded guilty to committing mail fraud, a violation of 18 U.S.C. Section 1341.
The former Executive Assistant to William B. Dunavant, Jr. has admitted to defrauding Dunavant of approximately $234,052. McCage appeared this afternoon in federal court before Chief United States District Judge Jon P. McCalla and entered a guilty plea to a criminal information charging her with mail fraud.
According to the information, from approximately 2006 until her termination in January of this year, McCage was employed at Dunavant Enterprises as the Executive Assistant to Dunavant, the company’s chairman. According to the information McCage handled Dunavant’s personal business and used Dunavant’s personal credit card and another credit card issued to McCage. McCage was to use the cards for the sole purpose of making purchases on Dunavant’s behalf. McCage was also responsible for reviewing and reconciling the monthly statements on the credit card accounts and coding expenses for accounting purposes. According to the information McCage was responsible for preparing and signing checks drawn against Dunavant’s personal checking account to pay the balances on the credit card accounts.
According to the information, from 2007 until her termination, McCage made numerous personal charges on the credit card accounts and then paid the balances with funds from Dunavant’s personal checking account. The information also states that McCage opened an American Express account in her name without Dunavant’s knowledge or consent, made personal charges to that account, and paid for those charges with funds from Dunavant’s personal checking account. A sentencing hearing is currently set for November 29, 2012. McCage faces up to 20 years in prison, a $250,000 fine, and three years supervised release.
This case was investigated by the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Carroll Andre, III.