September 8, 2009

EDEN BOOKEEPER JAILED FOR FRAUD

The Office of the United States Attorney for the District of Vermont stated that Deborah Whitney was sentenced to 41 months in prison by Chief Judge William K. Sessions today for fraud. She was ordered to report to prison on October 20, 2009.

Whitney pleaded guilty in April, 2009, to wire fraud, mail fraud, and tax fraud, based upon a series of frauds committed against several Vermont victims. The Court determined that Whitney over the past decade had taken $673,768, and ordered her to repay the various victims. Whitney was ordered to repay the proprietors of Arthur’s Department Store in Morrisville, Vermont, $556,488.

Whitney received an enhanced sentence based upon her efforts to obstruct justice in related Lamoille County civil and criminal litigation resulting from her defrauding Stanley Wescom Construction in Eden. Whitney pleaded guilty to that fraud, as well as to defrauding Chris Ferland, and Steven Carbone. Judge Sessions described her offense as “eggregious,” and her destruction of evidence in the Lamoille County case as “outrageous.” Several victims addressed the court during the sentencing hearing.

The United States Attorney credited the investigative work of the IRS Criminal Investigation Division and the FBI. Whitney was represented by Doug Kallen of Burlington. The United States was represented by Assistant U.S. Attorney William Darrow.