fraud

New charges filed against Democratic Sen. Robinson

The Tennessee Senate meets on June 1, 2020. (Erik Schelzig, Tennessee Journal)

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.

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.