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    United States Attorney's Office
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    Thom Mrozek
    Public Affairs Officer

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    Release No. 10-100

    June 28, 2010


    LOS ANGELES – A Santa Clarita woman was sentenced today to 96 months in federal prison for participating in a scheme that collected approximately $3.8 million from victims who were falsely promised low-interest, multi-million dollar loans from the “Federal Reserve Bank.”

    Pamela Terry, 40, received the prison sentence this morning from United States District Judge Percy Anderson, who also ordered Terry to pay just over $3.8 million in restitution, which represents the total amount of losses from Terry’s fraudulent scheme. The government previously seized approximately $1 million from Terry, money that will be used to repay victims.

    “She was willing to profit off people who placed their trust in her and became ensnared in her web of lies,” according to Judge Anderson, who added that Terry was a “financial predator.”

    In January, Terry pleaded guilty to two counts of wire fraud, one count of money laundering, and one count of impersonating an employee of the Federal Reserve. Terry posed as an underwriter with the “Federal Reserve Bank” and falsely told victims that she could offer pre-approved, commercial loans underwritten by the Federal Reserve. Terry specifically offered loans as high as $20 million at fixed rates as low as 2.1 percent. As part of the fraudulent loan offers, Terry told victims that the loans would be funded only after they made an advance payment, which she called a “minimum capital requirement” and was generally about 15 percent of the total loan amount.

    Terry collected a total of $3.81 million from 14 victims, none of whom received a loan, or saw the return of their “minimum capital requirement.” Terry told one victim that the delay in the funding of a $20 million loan was caused by the failure of IndyMac Bank.

    Terry used the bulk of the proceeds generated by the scheme to fund the recording career of her daughter, who is professionally known as “Yota.” Terry also victims’ money to support her lavish lifestyle, which included purchases of luxury automobiles and high-end fashion goods.

    Upon learning of Terry’s fraudulent scheme, federal agents froze her bank accounts and attempted to arrest her while she was driving. However, Terry fled through an intersection at a high rate of speed. Several days later, federal agents arrested Terry at a hotel in West Hollywood.

    The investigation into Terry’s Federal Reserve loan fraud scheme was conducted by the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement, the United States Postal Inspection Service, and the Office of Inspector General of the Board of Governors of the Federal Reserve System. The Los Angeles Police Department provided assistance.


    Release No. 10-100

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