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AMARILLO, TEXAS, MAN SENTENCED TO 87 MONTHS IN FEDERAL PRISON ON MONEY LAUNDERING CHARGES

FOR IMMEDIATE RELEASE
October 25, 2011

Mother and Son Defrauded Investors of More than $600,000

AMARILLO, Texas — Following his guilty plea to one count of money laundering on July 28, 2011, Timothy Fry, 33, was sentenced today by U.S. District Judge Mary Lou Robinson to 87 months in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. In addition, Fry, of Amarillo, Texas, was ordered to pay $582,784.01 in restitution. Fry’s mother, Janice Edwina Demmitt, 60, was convicted in August 2011 on a majority of the federal felony offenses charged in the 27-count indictment returned against her and her son in June 2011. Specifically, the jury convicted Demmitt on one count of conspiracy to commit money laundering, eight counts of wire fraud and 11 counts of money laundering. Her sentencing is pending.

Fry admitted that between 2006 and 2009, Fry and his mother ran an insurance agency in Amarillo, and as part of their business, as registered agents of Allianz Life Insurance Company of North America, they sold annuities to investors. The majority of their clients were elderly investors.

Fry and Demmitt represented to their clients that Allianz would match each investment they made, up to $100,000, and encouraged their investors to either cash-in or borrow against their existing Allianz annuities and use those proceeds to reinvest to take advantage of the “matching” funds. However, instead of reinvesting their funds as they told their clients they would do, Fry and Demmitt deposited the funds into their personal accounts. In fact, evidence presented showed that they tricked their investors with the promise of the matching investment money so that the clients would liquidate their legitimate investment accounts. More than $600,000 in client funds was transferred into Fry’s and Demmitt’s personal accounts.

The case was investigated by IRS-Criminal Investigation, Amarillo, Texas. Assistant U.S. Attorney Christy Drake of the U.S. Attorney’s Office in Amarillo prosecuted the case.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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