United States Attorney John M. Bales
Eastern District of Texas
FOR IMMEDIATE RELEASE CONTACT: DAVILYN WALSTON
THURSDAY, MAY 7, 2009 PUBLIC INFORMATION OFFICER
WWW.USDOJ.GOV/USAO/txe PHONE: (409) 839-2538 CELL: (409) 553-9881
CAMP COUNTY MAN GUILTY OF MAIL FRAUD
MARSHALL, TX – U.S. Attorney John M. Bales announced today that a 46-year-old Pittsburg, Texas man has pleaded guilty to mail fraud charges in the Eastern District of Texas.
PAUL BANKS pleaded guilty to an Information charging him with Mail Fraud today before U.S. Magistrate Judge Chad Everingham.
According to information presented in court, Banks purchased insurance on a horse, claiming a purchase price of $20,000, which was false. When the horse died, Banks submitted a claim by mail for $20,000 and denied having had any other horses die in the preceding 12 months. In fact, Banks had 4 horses die within the previous 12 months. Banks employed the same scheme for approximately 17 horses, for a total loss of between $200,000 and $400,000.
Banks faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Postal Inspection Service and prosecuted by Assistant U.S. Attorney Alan Jackson.
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