Kelly Layne Mullins Press Release (Guilty Plea)

July 31, 2003
For Immediate Release

FORMER LAW FIRM EMPLOYEE PLEADS GUILTY TO WIRE FRAUD AND UNDER REPORTING INCOME IN CONNECTION WITH $1.6 MILLION DOLLAR FRAUD SCHEME

St. Louis, Missouri: A former Bryan Cave employee pled guilty this morning to wire fraud and charges of under reporting her income on tax returns relating to a $1.6 million fraud scheme to defraud the law firm, United States Attorney Ray Gruender announced today.

The case was investigated by the Internal Revenue Service-Criminal Investigation Division, the Federal Bureau of Investigation and the U.S. Postal Inspection Service. First Assistant United States Attorney Michael W. Reap is handling the case.

KELLY LAYNE MULLINS, 45, of the 14800 block of Latham Lane, Bridgeton, Missouri, pled guilty to an information charging one felony count of wire fraud and four felony counts of making false material statements as to her income on federal income tax returns. She appeared today before United States District Judge Rodney W. Sippel.

Mullins now faces a maximum penalty of five years in prison and/or a fine of $250,000 on the wire fraud charge and three years in prison and/or a fine of $100,000 on each of the false statement charges. There is no parole in the federal system and restitution is mandatory. Sentencing has been set for October 24, 2003.

According to the facts filed with the court, from May 1996 through June 2002, Mullins was employed by Bryan Cave, LLP. Part of her duties included collections of past due accounts on behalf of Bryan Cave. She was also authorized to contract with outside collection agencies to assist in collection of past due accounts. In April 1996, Mullins created a fictitious company called Consultants of St. Louis (CSL) with a post office box in the name of Consultants of St. Louis/Kelly Mullins in Bridgeton, Missouri. CSL received 20% of the past due funds that they collected. Mullins hired CSL to collect past due accounts without Bryan Cave’s knowledge that CSL was her company. This practice violated Bryan Cave conflict of interest policies. False and fictitious records were created by Mullins representing CSL collection of money to Bryan Cave on delinquent accounts. Mullins then presented these records to Bryan Cave, who then created checks to CSL for their collection of money. During the six-year period of this scheme, Mullins received approximately $1.6 million dollars. Additionally, Mullins admitted with her plea that she under reported her income on her income tax returns filed for 1998 though 2001, in excess of $1,185,000. This caused a tax due of approximately $462,000.

UNITED STATES ATTORNEY'S OFFICE EASTERN DISTRICT OF MISSOURI RAYMOND W. GRUENDER United States Attorney	NEWS RELEASE
For further information: Call Public Affairs Officer Jan Diltz at (314) 539-7719
July 31, 2003 For Immediate Release FORMER LAW FIRM EMPLOYEE PLEADS GUILTY TO WIRE FRAUD AND UNDER REPORTING INCOME IN CONNECTION WITH $1.6 MILLION DOLLAR FRAUD SCHEME St. Louis, Missouri: A former Bryan Cave employee pled guilty this morning to wire fraud and charges of under reporting her income on tax returns relating to a $1.6 million fraud scheme to defraud the law firm, United States Attorney Ray Gruender announced today. The case was investigated by the Internal Revenue Service-Criminal Investigation Division, the Federal Bureau of Investigation and the U.S. Postal Inspection Service. First Assistant United States Attorney Michael W. Reap is handling the case. KELLY LAYNE MULLINS, 45, of the 14800 block of Latham Lane, Bridgeton, Missouri, pled guilty to an information charging one felony count of wire fraud and four felony counts of making false material statements as to her income on federal income tax returns. She appeared today before United States District Judge Rodney W. Sippel. Mullins now faces a maximum penalty of five years in prison and/or a fine of $250,000 on the wire fraud charge and three years in prison and/or a fine of $100,000 on each of the false statement charges. There is no parole in the federal system and restitution is mandatory. Sentencing has been set for October 24, 2003. According to the facts filed with the court, from May 1996 through June 2002, Mullins was employed by Bryan Cave, LLP. Part of her duties included collections of past due accounts on behalf of Bryan Cave. She was also authorized to contract with outside collection agencies to assist in collection of past due accounts. In April 1996, Mullins created a fictitious company called Consultants of St. Louis (CSL) with a post office box in the name of Consultants of St. Louis/Kelly Mullins in Bridgeton, Missouri. CSL received 20% of the past due funds that they collected. Mullins hired CSL to collect past due accounts without Bryan Cave’s knowledge that CSL was her company. This practice violated Bryan Cave conflict of interest policies. False and fictitious records were created by Mullins representing CSL collection of money to Bryan Cave on delinquent accounts. Mullins then presented these records to Bryan Cave, who then created checks to CSL for their collection of money. During the six-year period of this scheme, Mullins received approximately $1.6 million dollars. Additionally, Mullins admitted with her plea that she under reported her income on her income tax returns filed for 1998 though 2001, in excess of $1,185,000. This caused a tax due of approximately $462,000.