joplin business owner sentenced for defrauding partner
SPRINGFIELD, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., woman was sentenced in federal court today for embezzling $150,000 from her former business partner.
Peggy S. Newton, 39, of Joplin, was sentenced by U.S. District Judge Richard E. Dorr to two years in federal prison without parole. The court also ordered Newton to pay $150,000 in restitution to her former business partner.
On Oct. 14, 2011, Newton pleaded guilty to wire fraud. Newton was a partner in Evergreen & Amber, L.L.C., an interior decorating business and retail shop. She handled all of the financial aspects of Evergreen & Amber, while her business partner, Diane Pine, contributed all of the financial capital of the business and handled the daily design aspects of the business.
Newton engaged in a fraud scheme from Sept. 18, 2006, to June 29, 2009. Newton wrote approximately 393 checks, which were drawn on the business bank account, to make purchases and obtain money for her personal use and to pay for items and services for her personal benefit.
On approximately 500 occasions, Newton used her partner’s personal credit accounts and the credit accounts of Evergreen & Amber to make purchases and obtain money for personal use, and to pay for services for her personal benefit. Newton used Pine’s name, date of birth, and Social Security number to open new credit accounts without Pine’s knowledge or consent. Newton made eight attempts to obtain credit cards using Pine’s personal information. Seven applications were made via the Internet and one application was hand-written; four of these attempts were successful.
The specific count to which Newton pleaded guilty is related to the purchase of family portraits. Newton used Pine’s credit card, without her knowledge or consent, to charge $1,926 to Lagow Portrait Designs, Inc., in Joplin, on June 6, 2008.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the U.S. Secret Service and the Joplin, Mo., Police Department.
