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Date: 05-07-2021

Case Style:

United States of America v. Wesley A. Smith

Case Number: 1:19-cr-00272-JRS-TAB


Court: United States District Court for the Southern District of Indiana (Marion County)

Plaintiff's Attorney: United States District Attorney’s Office

Defendant's Attorney:

Criminal Defense Lawyer Directory

Description: Indianapolis, Indiana criminal defense lawyer represented Defendant who was charged with wire fraud.

Wesley A. Smith, 31, was employed by Seven Corners, a travel insurance business located in Carmel. His duties included processing travel insurance claims of Seven Corners clients. One of the clients is Family Motor Coach Association (FMCA). FMCA was an organization of RV owners whose members received travel insurance coverage for their RVs. Included in that coverage was reimbursement for necessary towing of a damaged RV.

Beginning December 2015 and continuing through December 2017, Smith devised a complex fraud scheme to steal money from his employer. He recruited three of his friends, who were not employed by Seven Corners to participate in his scheme. Using his position in the company, Smith created and approved fraudulent travel insurance claims purportedly submitted by FMCA claimants. He used the names of actual FMCA members on the claims without their knowledge and indicated that a claimant's RV was towed by a towing company which sought reimbursement for that service. Smith then caused payment to be made for the fraudulent claims to each of his co-conspirators who were identified as officials of the towing companies named on the fraudulent invoices. After the co-conspirators received the proceeds, they sent approximately one-half of the funds back to Smith by wire transfer. Smith sent over $394,000 in proceeds to the co-conspirators and they sent over $194,000 back to Smith. Additionally, on 38 separate occasions between December 2015 and April 2018, Smith sent over $105,000 directly to himself. This scheme resulted in loss to Seven Corners of over $499,000.

Smith undertook other fraud schemes during his employment in which his co-conspirators were not involved. Between March 2015 and April 2018, Smith created false scenarios to submit claims through the FMCA program. He used the company credit card for 235 fraudulent transactions to purchase airline and hotel purchases for himself, family, and friends. This resulted in loss to Seven Corners of over $221,000. Between May 2015 and April 2016, Smith caused six medical service overpayments to be directed into his personal bank account. This resulted in over a $37,000 loss. The total loss to Seven Corners caused by Smith was over $758,000.

“Stealing from your employer or any corporate business, not only affects that business, it eventually affects us all,” said Acting U. S. Attorney John E. Childress. “Smith was placed in a position of trust to make honest decisions, instead he allowed greed to dictate his decisions and he is now being held accountable.”

“Mr. Smith’s actions were fueled by nothing more than pure and simple greed and this sentence demonstrates how such fraud ends – with time in federal prison,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI will continue to aggressively pursue those who engage in these illegal busines practices in an attempt to enrich themselves at the expense of their employer.”

The Federal Bureau of Investigation investigated the case.

Assistant U.S. Attorneys James M. Warden and Bradley P. Shepard who prosecuted the case for the government.

Outcome: JUDGMENT as to WESLEY A SMITH (1), Defendant pled guilty to Count 1. Imprisonment: 47 months. Court recommends to the Bureau of Prisons: Designation to FCI Terre Haute, Indiana Prison Camp, or as close to Indianapolis, Indiana, as possible with the lowest security classification; and participation in mental health evaluation and treatment, educational programming, vocational training, Prison Industries, and parenting classes. Supervised Release: 2 years. S.A. Fee: $100 and Restitution: $758,164.90 Signed by Judge James R. Sweeney II on 5/6/2021. Electronic notice to USM-C.(JDC) (Entered: 05/06/2021)

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