Feds appeal judge’s decision to throw out 2 of 4 charges in Robinson fraud conviction
Federal prosecutors are appealing a judge’s decision to undo the jury verdict on two of four wire fraud charges former state Sen. Katrina Robinson was convicted of. The Memphis Democrat was ousted from the Senate last week on a 27-5 vote.
While the appeal works its way to the 6th Circuit, the government is also calling for the Memphis Democrat to be sentenced to up 2 1/2 years in prison and urging U.S. District Judge Sheryl Lipman against agreeing to a lighter sentence because of “the truly extraordinary breadth and scope of [Robinson’s] refusal to accept responsibility.”
“She has not simply declined to admit guilt; she has embarked on an extended campaign — before, during, and after trial; in front of the jury and in frequent statements to the media — to paint herself as the victim,” U.S. Attorney Joseph C. Murphy Jr. wrote in a motion filed Friday. “A consistent and recurring theme of this campaign is that the consequences she is facing are the result not of her own actions but of racial animus on the part of anyone who dares call her to account.”
The prosecutor cites news accounts in the Tennessee Lookout and Commercial Appeal about the Senate ouster, including Robinson’s statement that she was being subjected to a “procedural lynching.”
“This defiant refusal to accept responsibility and to instead cast herself as the wronged party in this case should be reflected in the sentence,” Murphy wrote.
Robinson is scheduled to be sentenced on March 3, and her legal team argued the Senate ouster was premature until her case reaches its official conclusion on that date.
“At this time we are considering every option we have to try to get those last two counts removed or dismissed,” Robinson attorney Larry Laurenzi told the chamber on Wednesday. “And we will continue doing that up until March 3. Has anything been filed today? No. Can I tell you that nothing is going to be filed next week? I can’t tell you that.”
Jury seated in Democratic Sen. Robinson’s fraud trial
A jury has been seated in the federal fraud trial of state Sen. Katrina Robinson. The Memphis Democrat is charged with spending more than $600,000 in federal grant money meant for her nursing school on personal expenses.
Opening statements are expected to take place on Tuesday. The trial could last more than three weeks.
Students at Robinson’s Healthcare Institute gathered outside the courthouse.
“We’re here to support her. She’s been nothing but great and amazing and we’re just going to support her,” Jennifer Taylor told WREG-TV. “But to be here together, standing for her, I’m very proud and very honored to be a part of the Healthcare Institute.”
The judge last week denied prosecutors’ motion to move the trial to Jackson or to bring in a jury pool from outside Shelby County.
Robinson, who was elected to the Senate in 2018, has pleaded not guilty.
Tennessee sportsbook sues to undo suspension by Lottery
Tennessee Action 24/7 is asking a court to undo a first-in-the-nation decision by the state Lottery to suspend its sportsbook license due to fraud and money laundering, the Associated Press reports.
Action 24/7, which is run by executives of short-term lender Advance Financial, is questioning the regulatory process used to issue the suspension.
According to Lottery investigator Danny DiRienzo, the company self-reported suspicious activity on March 17, which was several days after the alleged fraud took place. In one instance, he said, a player made a $10 deposit into his betting account, which was then followed by 124 deposits with seven cards in as many different names. The account holder then withdrew money without placing many bets.
“It is serious, serious criminal activity, probably in the tens if not hundreds of thousands of dollars worth of damages done with multiple real individuals and business victims,” DiRienzo said during an emergency meeting of the Lottery board on Friday.
According to the the lawsuit, company representatives wanted to be heard during the meeting, but the panel “refused to hear their position.”
The lottery’s actions were “an inadequate or sometimes complete lack of review of the evidence, an unwillingness to hear Action’s side of the story, and a rush to judgment, ultimately resulting in a destruction of Action’s business,” according to the lawsuit.
Tennessee Action said the total number of fraudulent deposits totaled about $37,400, of $14,700 has been recovered.
New charges filed against Democratic Sen. Robinson
New charges have been filed against state Sen. Katrina Robinson. The Memphis Democrat was previously indicted on 48 federal fraud counts in July 2020 — 24 each of wire fraud and theft and embezzlement from the government. Robinson has denied wrongdoing.
Here’s the U.S. Justice Department release outlining the latest developments:
MEMPHIS, TN – Tennessee State Senator Katrina Robinson, 40, has been federally charged in a new case, along with two other co-defendants, with conspiracy to commit wire fraud and money laundering. D. Michael Dunavant, U.S. Attorney announced the unsealing of the new federal criminal complaint today.
According to information presented in Court, the Healthcare Institute (“THI”) is a post-secondary educational provider located in Memphis, Tennessee. It purports to provide training programs for jobs in the healthcare field, including certified nursing assistant, phlebotomist, and licensed practical nurse. It was founded in January 2015 as a Tennessee for-profit LLC, with Katrina Robinson as director. THI received more than $10,000 in federal funds each year between 2015 and 2019. During that period, Robinson is alleged to have stolen, converted, and intentionally misapplied property of THI for her own use. As a result, on July 30, 2020, she was indicted in Case No. 2:20-cr-20147-SHL, which is currently pending trial in the U.S. District Court for the Western District of Tennessee. https://www.justice.gov/usao-wdtn/pr/federal-grand-jury-returns-indictment-charging-tennessee-state-senator-katrina-robinson
The charges in this new federal complaint arise from a completely separate fraud scheme in which Robinson, Katie Ayers, 59, and Brooke Boudreaux, 32, are alleged to have conspired to use THI to defraud victim R.S. out of $14,470.00, in violation of 18 U.S.C. § 1349 and 18 U.S.C. § 1956(h).
As set forth in more detail in the complaint affidavit, while investigating the charges in the 2020 case, the FBI also uncovered a scheme in which the defendants convinced R.S. that Boudreaux, with whom he had an existing relationship, needed the money for tuition and expenses to attend THI. R.S. agreed and tendered $14,470.00 to THI for that purpose. In fact, the investigation revealed that Boudreaux was never a student at THI, and the conspirators split the money among themselves for their personal benefit and unjust enrichment.
If convicted, the defendants each face a possible sentence of up to 20 years in federal prison followed by three years supervised release. There is no parole in the federal system. The case will be presented to a federal grand jury at a later date to consider an indictment against the defendants.
This case was investigated by the Federal Bureau of Investigation (FBI).
The charges and allegations contained in the complaint are merely accusations of criminal conduct, not evidence. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt, and convicted through due process of law.
Assistant U.S. Attorney Chris E. Cotten is prosecuting this case on behalf of the government.
Feds charge Democratic state Sen. Robinson with embezzlement
Freshman state Sen. Katrina Robinson (D-Memphis) is facing federal theft and embezzlement charges.
Prosecutors allege Robinson stole stole more than $600,000 from her business, the Healthcare Institute, by paying herself more than what was allowed under the terms the grant she received, the Daily Mempian reports.
Robinson defeated the late Sen. Reginald Tate in the primary in 2018 and went on to win the heavily Democratic district.
The Senate Democratic Caucus issued the following statement:
It’s clear that Sen. Robinson’s work in the state legislature on behalf of her constituents is not in question here today. Just like every other American, Sen. Robinson deserves the presumption of innocence and due process under the law. Her case should be resolved by a court of law, not by the court of public opinion.”
Investigators this week searched Robinson’s home and business again after conducting earlier raids in February. The complaint alleges Robinson used the money to buy a vehicle for her daughter, clothing, and beauty products. She is also charged with spending grant money on her wedding and honeymoon, followed by legal fees for her divorce.
Robinson’s company, the Healthcare Institute, in 2015 received a $1.6 million grant from the U.S. Department of Health and Human Services in 2015 to educate people “looking for a jumpstart to their education and also to provide patient education to the elderly community.”
An anonymous complaint filed in 2016 alleged Robinson had spent $550 in grant funds to buy a Louis Vuitton handbag. The agency’s inspector general opened an investigation, which the FBI later joined.
TN Attorney General’s Office responds to COVID-19
The Tennessee Attorney General’s Office is working at full strength even as most of its staffers work from home. Lawyers are handling mediations and depositions through video conferencing and filing court documents through a fax machine.
Samantha Fisher, the communications director for AG Herbert Slatery, is giving an inside look at how the office is continuing to function under these trying circumstances.
Nearly 250 staffers are working remotely with a focus on legal issues related to the coronavirus response, she said. The Consumer Advocate Unit successfully petitioned the state Public Utility Commission to prevent disconnection of service for nonpayment while the the governor’s state of emergency was in effect.
The Division of Consumer Affairs and the Public Protection Section look into each complaint filed. The division had received 202 formal complaints regarding the coronavirus, inclduding 139 for alleged price gouging (including one high-profile case that received national media attention) and 51 involving refund disputes such as for a vacation rental or event.
A Tennessee man who stockpiled 17,700 bottles of hand sanitizer donated all of the supplies on Sunday. “It was never my intention to keep necessary medical supplies out of the hands of people who needed them,” he said. “That’s not who I am as a person." https://t.co/VXhUNjrTnQ
— The New York Times (@nytimes) March 15, 2020
The Medicaid Fraud and Integrity Division lawyers have maintained their efforts at civil recovery for TennCare overpayments due to fraud. The division recovered $14 million last year, according to the AG’s office.
