April 14, 2010
AURORA MAN SENTENCED TO 5 YEARS IN PRISON FOR HIS INVOLVEMENT IN A SCHEME TO STEAL OVER $800,000 FROM GREAT-WEST INSURANCE
DENVER – David I. Hillman, age 31, of Aurora, Colorado, was sentenced on April 9, 2010, by U.S. District Court Judge Philip A. Brimmer to serve 60 months (5 years) in federal prison for conspiracy to launder money, engaging in monetary transaction in property derived from specified unlawful activity, and making false statements to a federal law enforcement agent, United States Attorney David Gaouette, IRS Criminal Investigation Special Agent in Charge Christopher Sigerson, and FBI Special Agent in Charge James Davis announced. Following his prison term, Hillman is to serve 3 years on supervised release. Hillman was also ordered to pay $809,578 in restitution to the victim, Great-West Life and Annuity Insurance company. Hillman, who is free on bond, was ordered to report to a facility designated by the U.S. Bureau of Prisons.
David I. Hillman was indicted by a federal grand jury in Denver on April 20, 2009. That indictment was sealed pending Hillman’s arrest, which took place on June 3, 2009. On November 17, 2009, David I. Hillman was found guilty by a jury following a 5 day trial. The jury deliberated for one and a half hours before reaching their verdict. He was sentenced on April 9th, 2010.
According to the indictment, as well as facts presented to the jury during trial, in September 2001, and continuing through early 2006, David Hillman conspired with his ex-girl friend, Hillary Shaffer, to receive and spend hundreds of thousands of dollars stolen from Great-West, an insurance company located in Greenwood Village, Colorado. Hillman was employed at Great-West from 1999 through March 2001.
Shaffer similarly worked as an employee of Great-West during the period 1999 through 2005. Over the course of her employment, Shaffer stole over $800,000 from annuity accounts controlled by Great-West. On numerous occasions Shaffer diverted payments from Great-West to herself and the defendant, who was her boyfriend at the time. Shaffer carried out her scheme to steal Great-West funds by causing checks to be issued from a Great-West operating account to the benefit of “David Hillman,” using a stolen computer passcode. In addition, Shaffer caused wire transfers of stolen funds to be directly deposited into one of two joint accounts controlled by her and Hillman. During the course of the conspiracy, both individuals jointly accessed such accounts and spent the stolen funds. The investigation revealed that Hillman was aware that the money was stolen from Great-West. He also admitted to lying to federal agents when asked about the source of the funds.
Hillary Shaffer was charged and ultimately pled guilty to wire fraud. After being charged, Shaffer cooperated with the Government’s investigation for which she received a reduction in sentence, resulting in a 22-month sentence to imprisonment.
On September 8, 2008, Hillman knowingly made materially false, fictitious and fraudulent statements to the FBI and IRS Criminal Investigations when asked about the source of the funds.
“Crimes of this nature affect all of us,” said U.S. Attorney David Gaouette. “Thanks to the IRS-CI, FBI and prosecutors of our office, Mr. Hillman will be spending the next five years in federal prison.”
“Addressing major White Collar Crime remains a priority for the FBI,” said Special Agent in Charge James H. Davis. “Working with the United States Attorney’s Office, the IRS, and other law enforcement partners, the FBI will continue to pursue prosecutions of individuals who commit these types of frauds.”
“Today's sentencing is a direct result of the partnership between IRS CI, the FBI and the U.S. Attorneys office in combating violations of Federal law," said Christopher M. Sigerson, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “There are serious consequences for lying to Federal Agents.”
Hillman faces forfeiture of the 1999 Nissan Skyline.
This case was investigated by jointly Special Agents with the IRS Criminal Investigation (IRS CI) and the Federal Bureau of Investigation (FBI).
Hillman was prosecuted by Assistant U.S. Attorneys Tim Neff and Jaime Pena.
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