G and H Financial Services Home Page
postheader postheader postheader postheader postheader postheader

The former controller for a Houston-based property/casualty insurance company has been sentenced to 120 months in federal prison for her conviction of conspiracy to commit wire fraud involving almost $1 million in loss to the victim company, according to the U.S. attorney’s office.

U.S. Attorney José Angel Moreno announced that Carla Jean Johnson, 40, of Houston, was sentenced by U.S. District Judge Melinda Harmon. The announcement noted that Johnson abused a position of trust, using her leadership role to involve 13 other to assist her in the theft which took place over a two-year period.


Johnson, the former controller for Columbia Lloyd’s, will be required to serve a three-year-term of supervised release upon completion of her prison sentence and was ordered to pay $977,418.38 in restitution. The court stated that the defendant’s actions “substantially affected the company and individuals to a great degree.”

The one-count indictment, returned Dec. 14, 2010, alleged that Johnson worked as controller of a Houston insurance company beginning in 2005. On or about, July 11, 2007, through July 11, 2009, Johnson began sending money from the company’s account to her friends, family and at least one co-worker, who would then return some of the money to Johnson.

On April 21, 2011, Johnson pleaded guilty to the wire fraud.

The fraud was discovered July 11, 2009, when Johnson and co-defendant Donnie Smith, 33, of Houston and Atlanta, Ga., tried to cash a Columbia Lloyd’s check for $180,000 made out to Smith at a local Wachovia branch. Johnson was fired from her position as controller July 13, 2009, when company officials confirmed to Wachovia that the check was fraudulently issued.

Upon a close examination of their accounts, the company, along with the FBI, discovered additional fraudulent withdrawals by Johnson. She had disguised her theft in some instances by listing the payee as an insurance company or by listing a claim or policy number on the document authorizing the transfer of money to a co-conspirator.

Johnson has been in federal custody without bond since her Dec. 20, 2010, arrest. She will remain in custody pending transfer to a Bureau of Prisons facility to be designated in the near future where she will serve her sentence.

Smith previously pleaded guilty and was sentenced on Sept. 2, 2011, to 41 months in federal prison followed by three years of supervised release and ordered to pay $199,914 in restitution.

Another co-defendant, Royce Lamar Smith, 38, of Houston, pleaded guilty in April 2011 and was sentenced on Aug. 26, 2011, to 60 months imprisonment followed by a three-year-term of supervised release and ordered to pay $168,474.91 in restitution. Royce Smith was on state felony shock probation along with Johnson for a theft from Johnson’s prior employer in 2004.

The conviction is the result of an investigation conducted by the FBI and prosecution by Assistant U.S. Attorney Martha Minnis.

Source: U.S. Attorney’s Office

Posted 8:47 AM  View Comments

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version




HOME PAGE ABOUT US GET A QUOTE PERSONAL BUSINESS CARRIERS REFER A FRIEND CONTACT US

5503 4th St | Katy, TX 77493 | 281.395.5497 | 
Contact Us
Serving HoustonKatyThe Woodlands and surrounding areas in Texas.

Logo
Powered by Insurance Website Builder
Facebook Twitter LinkedIn Blog Yelp Google+