Corona Woman Who Ran High-End Denim Jean Company Arrested Again For Defrauding Investors
LOS ANGELES – A Corona woman, who is already charged with a $15 million bank fraud and bankruptcy fraud, was arrested today on a new charge and is expected to appear in federal court this afternoon.
Carolyn Marie Jones, 51, of Corona, who was the Chief Executive Officer of a high-end denim jean company, was arrested this morning by Special Agents with the United States Secret Service and the Internal Revenue Service pursuant to a criminal complaint issued yesterday by a federal judge.
According to the criminal complaint, which charges wire fraud, Jones defrauded two Georgia men in an investment fraud scheme. According to the complaint, Jones convinced the Georgia men to invest with her, but spent the money on her own personal expenses. Jones, who was on bond pending a September 23 trial in the bank and bankruptcy fraud case, was prohibited from soliciting money from investors while the trial is pending.
According to the nineteen count indictment returned by a grand jury in September 2013, Jones was the Chief Executive Officer of Diamond Decisions, Inc., which sold denim jeans marketed under the labels of Privacywear and PRVCY Premium. According to the indictment, Jones obtained a $15 million business line of credit from Union Bank, using fake financial statements and fake tax returns. The indictment states that Jones gave the bank a Social Security Number that belonged to someone else. Jones also hid from the bank that she had filed for bankruptcy previously and that she had a felony record. According to the indictment, Jones defaulted on the $15 million loan after a year causing Union Bank to file a lawsuit in state court. When Union Bank tried to seize the contents of the Diamond Decisions warehouse, Jones caused the company to file for bankruptcy and hid assets from the bankruptcy trustee.
Jones faces a maximum statutory sentence of 489 years in federal prison on the bank and bankruptcy fraud indictment. Jones faces a maximum statutory sentence of 20 years on the wire fraud complaint.
A complaint and an indictment contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The charges in the complaint and indictment are the results of an investigation conducted by the United States Secret Service and the Internal Revenue Service.
Release No. 14-081