Sandra Jean Valencia, from Goodsprings, NV, was charged with six counts of mail fraud, five counts of wire fraud, and four counts of tax evasion. The indictment charging Valencia was returned by a federal grand jury on August 20, 2003 and sealed pending her arrest yesterday in Las Vegas, NV.  Valencia is scheduled to make an initial appearance in Las Vegas.

Valencia had been appointed by her grandmother, Alice Wobig,  as trustee to her estate and was given control over her grandmother’s brokerage accounts and bank accounts as power of attorney.   The grand jury alleged in the indictment that Valencia used her position as trustee to write checks and transfer over $500,000 of assets belonging to Wobig and Wobig’s estate to herself.

According to the indictment, Valencia allegedly arranged for Wobig’s account statements from Piper Jaffray to be delivered to her rather than her grandmother.  From September 1996 through March 1999,  Valencia allegedly transferred and deposited over $250,000 from Wobig’s Piper Jaffary Prime Count directly into her bank accounts.  She also wrote over $100,000 worth of checks from her grandmother’s account for her own benefit.

Valencia allegedly attempted to conceal her embezzlement by falsely advising Wobig’s investment advisor that Wobig had skin cancer requiring health care treatments at a cost of approximately $1,000 per day, the indictment alleged.

The grand jury alleged in the indictment that Valencia also diverted over $110,000 from Wobig’s accounts at the Bank of Zumbrota using the same method. And, after Wobig’s death in June 1998, she allegedly deposited a $41,587 check for Wobig’s life insurance and $7,000 in land rental payments directly into her own bank account.

Valencia allegedly used the embezzled funds to pay for real estate in Illinois, Nevada, and West Virginia, to purchase vehicles, to start a coffee shop business, and to pay credit card, utility, and insurance bills.

The indictment also charges Valencia with evading approximately $135,000 in tax for calendar years 1997-2000. During calendar year 1997, Valencia allegedly claimed on federal income tax forms that she made approximately $31,914.  The indictment alleges that Valencia received over $150,000 during calendar year 1997. In subsequent years Valencia allegedly failed to file federal income tax returns.  The indictment alleges that during those years Valencia received  over $410,000.   If convicted, Valencia faces a maximum potential penalty of five years in prison and/or a $250,000 fine on each of the 15 counts of the indictment.  Any sentence would be determined by a judge based on the federal sentencing guidelines.

The case is the result of an investigation by the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Mike Cheever.

Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent unless and until proven guilty.