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Date: 04-16-2021
Case Style:
Case Number: 2:21-mj-30160-DUTY
Judge:
Court: United States District Court for the Eastern District of Michigan (Wayne County)
Plaintiff's Attorney: United States District Attorney’s Office
Defendant's Attorney:
Description: Detroit, Michigan fraud charge criminal defense lawyer represented Defendant, John R. Lynch, age 56, who was charged with obtaining by fraud, embezzling, and unlawfully converting to his own use the funds of the Holy Cross organization, a large charitable organization based in Clinton, Michigan, that receives federal funds.
The affidavit supporting the complaint states that in March 2012 Lynch became the CFO of the Holy Cross organization, and in January 2015 he became its CEO. Holy Cross was established in 1948 when Boysville of Michigan was incorporated under the auspices of the Roman Catholic Archdiocese of Detroit. Boysville of Michigan later became Holy Cross Children’s Services. The Holy Cross organization provides welfare services to disadvantaged children and adolescents, behavioral health services to adolescents and adults, and a number of support services to the homeless. Holy Cross services are provided mostly to individuals in Southeast and Mid-Michigan. The Holy Cross organization also includes the Samaritan Center, a large community resource center that provides healthcare, employment services, and other forms of support to residents of Detroit’s east side.
The complaint affidavit states that when he was Holy Cross’s CEO, Lynch used Holy Cross funds to pay for repairs to his own cars, install a new roof on his house, pay down his personal mortgage balance, and make payments on a personal American Express account. Lynch also used Holy Cross funds to pay his own consulting company and to pay another company hired to provide security services at the Samaritan Center, a company ostensibly controlled by a relative but actually controlled by him. Lynch attempted to justify some of these payments with bogus invoices The complaint affidavit also relates that Lynch used his corporate Holy Cross American Express card to pay for goods and services of a personal nature.
Holy Cross receives federal funds under the National School Lunch Program and the School Breakfast Program. It also receives federal funds under Title IV-E of the Social Security Act, which pays for foster care and provides adoption assistance and guardianship assistance.
The complaint charges Lynch with wire fraud, mail fraud, and embezzling and stealing funds under the care, custody, and control of an organization receiving federal funds. A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
The case is being prosecuted by Assistant United States Attorney Stephen Hiyama. The investigation is being conducted by the Federal Bureau of Investigation.
Violation of 18:1343.
Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation occurs in relation to, or involving any benefit authorized, transported, transmitted, transferred, disbursed, or paid in connection with, a presidentially declared major disaster or emergency (as those terms are defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)), or affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.
Outcome: 04/09/2021 10 NOTICE OF ATTORNEY APPEARANCE: Andrew Densemo appearing for John R. Lynch (Densemo, Andrew) (Entered: 04/09/2021)
04/09/2021 11 STIPULATION Substitution of Attorneys by John R. Lynch. (Swor, William) (Entered: 04/09/2021)
04/09/2021 12 ATTORNEY APPEARANCE: William W. Swor appearing for John R. Lynch . (Swor, William) (Entered: 04/09/2021)
04/09/2021 13 ATTORNEY APPEARANCE: Michael A. Rataj appearing for John R. Lynch . (Rataj, Michael) (Entered: 04/09/2021)
04/09/2021 14 ORDER for substitution of attorneys as to John R. Lynch. Signed by Magistrate Judge Curtis Ivy, Jr. (DPer) (Entered: 04/12/2021)
Plaintiff's Experts:
Defendant's Experts:
Comments: