Donah Smith Pleads Not Guilty to Mail/Wire Fraud

The Office of the United States Attorney for the District of Vermont announced that Donah Smith, 50, of Rutland, pleaded not guilty yesterday in United States District Court in Burlington to mail and wire fraud charges. U.S. Magistrate Judge John M. Conroy released Smith on conditions pending trial, which has not been scheduled.

On March 23, 2011, a federal grand jury in Rutland returned a two-count mail and wire fraud indictment against Smith. According to the indictment, Smith was employed by ARC-Rutland, a non-profit organization which assists persons with mental disabilities in managing their financial affairs. In that capacity, Smith had access to bank accounts and checkbooks of ARC clients.

The indictment charges that between 2008 and May 2010, Smith embezzled thousands of dollars from ARC clients by using money from client bank accounts to pay her personal expenses. In furtherance of the scheme, Smith allegedly used the U.S. mails and the Internet to make payments to her creditors with fraud proceeds. ARC uncovered the fraud in May 2010 during an internal audit and promptly fired Smith.

The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until she is proven guilty.

If convicted, Smith faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.

This case was investigated by the Burlington office of the Federal Bureau of Investigation.

Smith is represented by Alison Arms. The prosecutor is Assistant U.S. Attorney Gregory Waples.