CONTACT: Gina Balaya (313) 226-9758
 

FOR IMMEDIATE RELEASE:
 

    United States Attorney Jeffrey G. Collins, Special Agent in Charge John Bell, Jr., Federal Bureau of Investigation, Detroit and Special Agent in Charge Mark Kroczynski, Internal Revenue Service, Criminal Investigation Division, Detroit, announced that two residents of Detroit were indicted today by a federal grand jury in Detroit on charges of mail fraud, embezzlement of insurance premiums, money laundering, tax evasion and obstruction of justice.

    Named in all of the 34-counts of the superseding indictment was Maurice Adams, age 42, of Detroit, Michigan, formerly the owner of Time Management Group, Inc.

    Named in only one count (alleging insurance premium embezzlement) was Carol Peart, age 41, of Detroit, Michigan, a certified public accountant and formerly the head of accounting for Mercy Health Services, Inc.

    Mr. Collins stated that, "The indictment charges that Mr. Adams, aided by Ms. Peart, from April 8, 1992 through March 25, 1997, combined to embezzle and misappropriate insurance premiums belonging to Mercy Health Services, Inc. The indictment further alleges that Mr. Adams engaged in a mail fraud scheme during the same period to the same end and laundered the proceeds of this fraud by engaging in a number of financial transactions, including various transfers of money to an account of the Downtown London Chophouse from late 1995 through early 1996. In addition, Mr. Adams is charged with tax evasion for failing to file income tax returns for the tax years 1995, 1996 and 1997 and for concealing and attempting to conceal his income for those years from the United States. Lastly, it is alleged that Mr. Adams attempted to obstruct the due administration of justice in August, 1998 by arranging to furnish and furnishing false documents to a person he knew to be subpoenaed to appear before a federal grand jury for he purpose of submitting those documents to the grand jury.

    Mr. Collins added that, "If convicted, Mr. Adams may receive a sentence of up to 5 year years in prison or fines totaling $250,000, or both, on each of the seven mail fraud counts, up to 20 years in prison and fines totaling twice the value of the property involved, or both, in the 22 money laundering counts, up to five years in prison or fines totaling $100,000 per count, or both, on each of the three tax evasion counts, and up to 10 years in prison and a fine of $250,000 for obstruction of justice. In addition, both Mr. Adams and Ms. Peart face maximum sentences of 10 years in prison and fines of $250,000 for embezzlement of insurance premiums."

    "Any sentence will be imposed under the United States Sentence Guidelines according to the nature of the offense and the criminal background, if any, of the defendants."

    The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.

    Mr. Collins cautioned: "An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt."